Shop types match changing consumer preferences
- The Charleston retail market absorbed 204,454 square feet of shopping center space during the third quarter of 2019.
- Overall weighted rental rates for remaining shopping center space averaged $16.59 per square foot this quarter - lower than the first two quarters of this year - mostly due to lesser quality space remaining in the market.
Pop-up shops: a bridge to fully leasing centers
Pop-up shops are less of a trend and more of a retail strategy now that consumers understand more about them. Often pop-ups use social media to expand awareness of the pop-up location and even advertise the shop longer than the actual shop is open; however, pop-ups are highly successful if executed correctly. There are several reasons pop-ups are advantageous:
- To test out a “cold” market with a new brand in order to gauge the opportunity to thrive;
- Allow one-on-one interaction with customers allowing them to test out products and answer consumer questions;
- Introduce a new line of a known brand so consumers can try samples from a company they already trust;
- Consumers are likely to show up and shop so they do not miss out on an opportunity.
Listed above are a few ways retailers can succeed using pop-up shops, nevertheless owners of retail centers can also bridge the gap to a fully-leased building by allowing pop-ups to rent space for short periods of time. Not only will it bring in revenue but it will also drive traffic to shopping centers; therefore, allowing for a vibrant and renewed environment for surrounding shops. If pop-ups have considerable success, they may become long-term tenants as well.
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