Could Luxury Pop-Ups Help Revitalize the Retail Market?

Gucci and North Face have joined forces to launch a pop-up retail shop in Williamsburg, Brooklyn. The collaboration signed a 4,000-square-foot lease at 134 N 6th Street, a property owned by L3 Capital. The deal signals the recovery of the luxury retail market, and the potential that pop-ups might play in revitalizing the sector.

Newmark negotiated the lease on behalf of the landlord. The firm’s vice chairman Ariel Schuster and associate director Tyler King represented the landlord in the transaction, while GoodSpace’s Hank O’Donnell and Chris DeCrosta represented the tenant. Schuster has seen a rising trend in luxury collaborations. “Recently, several brands and collaborations like Gucci have been taking a serious look at Williamsburg as a place in which to set up shop due to its lively residential population and forward-thinking neighborhood retailers,” he said in a statement.

The Gucci and North Face collaboration is popping up in five other locations in the US and Canada. The concept is inspired by pins on a map and will be an immersive environment. It will be opened through February 14.

The space features 14-foot ceiling heights and 40 feet of frontage along North 6th Street. L3 Capital purchased the property as part of a portfolio for $90 million in early 2020, before the pandemic hit. The complete portfolio includes 11 retail properties located in Williamsburg totaling 85,000 square feet and includes North 6th and North 7th Streets, Kent Avenue, Wythe Avenue, and Berry Street.

There are of Williamsburg has become a popular retail destination. In addition to this collaboration, Warby Parker, Buck Mason, Everlane, D.S. & Durga, Madewell’s first men’s location and Lululemon have also recently opened locations nearby.

2020 was a turbulent year for the retail sector with mass bankruptcies and store closures. As we move into 2021, retailers are beginning to adapt and find ways to drive revenue, like these pop-up locations. Recent reports also promise hope. Pent-up demand to shop and dine in person will help to drive brick-and-mortar retail gains this year. A report from Colliers International predicts that physical, in-store retail sales will increase 5.9%. This will help to offset the in-store retail losses in 2020, which totaled more then 3% by the end of the year.