By: David Schneider, Herman Lipkis
There are a lot of reasons for developers to embrace these temporary spaces, but due diligence is required.
Pop-ups and short-term uses for commercial property have grown from a trendy concept into a means of monetizing vacant or underused spaces. Moreover, as improved and varied amenities have become a priority for commercial and residential tenants, real estate developers are starting to reframe how they think about existing and future development.
Creating an environment is as much an art as it is a science, and achieving it requires rethinking decades-old philosophies on return on investment. The benefit of these activations may be difficult to quantify, but their importance to creating a place is unquestionable.
However, establishing a pop-up haphazardly could make short-term uses unjustifiably expensive and risky. Done right, short-term uses can breathe new life into any development.
To successfully incorporate short-term uses into a development, due consideration must be given to any approvals needed by the local government, as well as the drafting and negotiation of the lease or license agreement.