MIPIM UK 2015: Increased demand for shorter leases in retail, office and residential space is driving the pop-up revolution.
This demand across the spectrum of real estate is why the pop-up concept will last, delegates heard at this morning’s MIPIM UK breakfast debate: The pop-up revolution, which was sponsored by Trowers & Hamlims.
“It is more of an evolution than a revolution,” said Ross Bailey, chief executive and founder of Appear Here.
“Leases are getting shorter, which is natural in retail, but I think the concept of temporary leases is something we are seeing across the board.
“Changes in the way that we work are also driving this change, with some new businesses only needing office space for as little as four months.
“We are seeing significant behavioural changes and we have to respond to those changes in the way that we commit to space.”
This need for flexibility also transcends into the way we live, and there is an increase in people who prefer to have shorter leases for their living space.
“We are seeing a huge demand for people wanting shorter leases because they don’t know where they are going to be in six months’ time or they might change their mind about something,” says James Scott, chief operating officer of The Collective.
“As well as the demand, there is also value to be had,” he added.
“There is always a lot of talk about the consumer, but as a landlord it is a very good way to create value where there wasn’t any value before,” he added. “While you are waiting for a site to be developed, you can monetise it with a pop-up. It is a win-win for creating value.”
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