The situation: While pop-ups have long served as a relatively low-cost way to garner buzz, three interrelated factors are forcing brands to develop more creative strategies to forge connections with customers.
- Limited availability. Well-trafficked areas conducive to pop-ups are hard to find as tenants snatch up available space at a record clip. Nearly half of retail spaces get leased in three months, per JLL. The average time from listing to lease execution is 8.5 months, the fastest rate in at least two decades.
- Rising rents. Strong demand and limited inventory give landlords leeway to push up rents. In Phoenix, for example, retail rents are up 7.4% year over year (YoY) in Q3, and there were also significant increases in other Sunbelt markets like Tampa (6.3% YoY), Charlotte (5.8% YoY), and Atlanta (5.3% YoY), per JLL.