This is a creative way on thinking of trying to full some of our retail vacancy’s around the city. Perhaps this would be better to put into context, like a retailer that focus on a holiday event like Halloween. It would be tough to support that annually, but for the 90 days prior to the holiday, it might be a great solution. This would also allow the Landlord to continue to market the space to a more permanent retailer. Some of the concerns might be the transactions costs of producing a lease agreement along with the lender’s concern about being a transient building.
Banker & Tradesman spoke with Storefront co-founder Tristan Pollock, noting “the concept is the commercial real estate equivalent of AirBNB, the popular website that allows consumers to find vacation rentals or apartments for the short term…Pollock said that the service would tackle a problem that plagues the commercial real estate industry across the country: the retail space vacancy rate is higher than it’s ever been (10 percent on average). It would also make it easier for potential tenants to connect with property owners.”
The complete article, and additional commentary from Storefront co-founder Tristan Pollock, are available on B&T: short-term leases for retail outlets