Pop Up Shop Rental Agreement

The pop-up concept allows a new company to commercialize its activities and test the viability of a site and product before making a financial commitment to a long-term lease. This type of regulation also helps landlords, not only in the short term, by generating rent and filling a void that may not otherwise be occupied, but also by creating „buzz“ for a particular shopping centre or building, thereby increasing customer traffic and attracting other, hopefully more sustainable, tenants to the site. Short-term leases also allow landlords to determine whether they want to keep a particular tenant for a longer period of time. Another option in development for landlords, especially in high foot traffic or popular places, is the creation of a place like a permanent pop-up site for temporary rotating tenants. The increased interest in pop-ups is evidenced by the many newly created websites, which facilitate agreements between homeowners who wish to list real estate in the short term and tenants who wish to use this evolving marketing concept. Where, short-term leases must be required by the tenant to comply with the rules of the shopping centre and the owners reserve the right to modify, at their sole discretion, the rules and regulations as well as the size, location, amount, nature or use of a part or any public sector, the shopping centre or part of it. , as the lessor may determine from time to time. As with authorized issues, tenants may be willing to take risks by violating the rules, as their mandate may be terminated before the lessor can appeal. Landlords should ensure that tenant compensation is included if the tenant breaks the rules and include the right to pay a surety for such compensation. Pop-up stores or restaurants usually occupy small sales areas for a short period of time. Pop-up space can allow tenants to try a new retail business or allow them to attract customers during a specific season (for example. Christmas) or at a limited-time event (for example.

B a sports tournament). Landlords are open to pop-ups because they can fill open spaces, increase rental income and increase interest in their retail space. In addition, due to the brevity of the pop-up`s empty spaces, the traditional repair and maintenance obligations imposed on tenants, such as the maintenance of interior walls and COC facilities, are not realistic. Owners must be prepared to quickly complete all repairs and maintenance. Since a delay in opening or completing a repair could be fatal for a pop-up store, tenants should consider applying for a termination fee if the opening date is postponed or repairs are not completed in time. Similarly, tenants want a right of termination in the event of an accident instead of waiting for the owner to be rebuilt. As a result, owners should consider their ability to quickly complete all repairs on the premises before entering into agreements with pop-ups.