Leases & Licences for Pop-Up Shops
A “pop-up” shop is trading space that is occupied by a retailer – such as a shop, café or restaurant – for a short period of time. The legal documentation, whether a lease or a licence is kept simple, meaning that negotiations are concluded quickly and the tenant can move in and start trading without delay.
Pop-ups are in vogue at the moment, appealing to both landlords and tenants for different reasons. Landlords like pop-ups because they can fill vacant space, increase rental income and add interest to their retail premises.
For tenants, pop-up premises offer the chance to try out a new retail business without having to commit to a long term lease. Pop-ups also enable tenants to attract custom during a particular season, such as Halloween or Christmas, or at a limited-duration event such as a sports tournament or a festival.
Pop-up shops are commonly seen on high streets and in shopping centres. However, planning law allows pop-up shops to operate on land whose permitted use is not “retail”, in certain circumstances.
There is the “28 day” rule which allows land to be used for a temporary use for up to 28 days in any calendar year, subject to certain restrictions. There is also, from 30 May 2013, the ability for office premises, non-residential institutions (such as school, church halls and health centres) and leisure facilities (such as cinemas, concert halls, sports halls or playing fields) to change use to retail for a single period of up to two years.
The contents of this Newsletter are for reference purposes only and do not constitute legal advice. Independent legal advice should be sought in relation to any specific legal matter.