Investments in Pop-up Stores : Alternative Rental Models and Vacancy Risk Reduction

This book focuses on two key challenges: the negative impact on property value and higher vacancy risk of pop-up stores. It suggests alternative rental models based on footfall and customer conversion rates and provides a strategic framework for real estate investors to develop and manage pop-up stores. The empirical study emphasizes the importance of data availability, the evolution of market fundamentals, and the potential of the operator model for managing pop-up retail spaces. The retail real estate market in Switzerland comprises about 13.0% of total commercial areas. The growth of e-commerce, accelerated by the COVID-pandemic, is leading to significant changes in bricks-and-mortar retail. Real estate owners are faced with higher vacancy rates, shorter rental terms, and lower rents. However, there are barriers with e-commerce that prevent it from fully replacing physical stores. While retailers are now seeking flexible and innovative spaces like pop-up stores, this book sheds light on enhancing pop-up store viability in real estate investment strategies from the point of view of property investors. This textbook has been recommended and developed for university courses in Germany, Austria and Switzerland. Contents • Introduction • Literature Review • Methodology • Results Alternative Rental Models • Results Minimization of Vacancy Risks • Conclusion & Discussion About the authors Alessia Breda MScRE is Joint Lead Hotels & Operational Real Estate Switzerland at CBRE in Switzerland. She holds a BSc from EHL and a MScRE degree from Lucerne University. During her research, she especially focused on investments in and management of Pop-up stores. Prof. Dr. Michael Truebestein FRICS is professor of real estate management and investments as well as Head of the Master of Science in Real Estate (MScRE)-program at Lucerne University (HSLU). Furthermore, he was elected president of the RICS in Switzerland in 2019. Dr. Matthias Daniel Aepli is lecturer at Lucerne University (HSLU), entrepreneur in the real estate sector and author of various publications in the area of real estate management, investment strategies, asset management, corporate financial management and risk management.