The Rise of Hybrid Pop-Ups

If the concept of experiential retail is the industry standard for combating ecommerce and driving shopping center traffic, then pop-up shops are fast becoming the medium. They are a great way to harness trendy retail concepts and fill vacant retail spaces. Pop-up shops, however, can be tricky because they rely on micro leases of only a few months. New long-term pop-ups or “hybrid pop-ups” could be the perfect solution. A hybrid pop-up has a longer-term lease—yet still substantially shorter than a standard retail lease—allowing for some stability while giving landlords an opportunity to bring in trendy and experiential concepts.

“This really ties into the experiential retail trend. A traditional pop-up will typically be a lease term of a few months, and that can be beneficial for a landlord while they figure out the long-term strategy for the retail space,” Gabe Kadosh, VP at Colliers International, tells GlobeSt.com. “A hybrid pop-up has a longer-term lease, which allows the landlord to test the idea. I believe that we will see these kind of lease terms popping up across the country for experience restaurant concepts. It has happened on the apparel side, but this is really the first we have seen with a restaurant.”

Kadosh recently signed the restaurant concept Saved By the Max to a “hybrid pop-up” lease at the West Hollywood Gateway shopping center. The retailer signed a two-year lease at the center for its restaurant concept, a live version of The Max burger joint from the 1990s television show Saved By the Bell. The restaurant opens later this year, but has already gotten substantial press and attention on social media. “The ownership is ecstatic because it has gotten so much positive news coverage,” says Kadosh.