Investments in pop-up stores : alternative rental models and vacancy risk reduction

This book focuses on two key challenges: the negative impact on property value and higher vacancy risk for pop-up shops.

It suggests alternative rental models based on footfall and customer conversion rates and provides a strategic framework for real estate investors to develop and manage pop-up stores.

The empirical study emphasizes the importance of data availability, market fundamentals, and the potential of the operator model for managing pop-up retail spaces. The retail real estate market in Switzerland comprises about 13.0% of total commercial areas.

The growth of e-commerce, accelerated by the COVID-19 pandemic, is causing significant changes in brick-and-mortar retail.

Real estate owners are facing higher vacancy rates, shorter rental terms, and lower rental prices.

However, e-commerce has limitations that prevent it from fully replacing physical stores.

Retailers are now seeking flexible and innovative spaces like pop-up stores.

In Switzerland, pop-up stores are mostly used as marketing tools or to fill vacancies, rather than as a sustainable business model, due to their negative impact on property market value. This textbook has been recommended and developed for universitary courses in Germany, Austria and Switzerland.