Pop-up shop rent

Peterdalkey

I know nothing about retail rents etc. A friend is looking at a 3 month pop-up shop in a neighborhood shop row developed in the 1970s. It is adjacent to a big south Dublin industrial/office/retail development. 50 sqm @ 400 pw to included rates and service charge. Needs a good tidy up, and a lick of paint. Being offered 2 weeks free to do work.

Is this reasonable?

Nuttzz

would have thought 1600 was a lot for such as small unit, but as its 3 months i suppose its a bit more reasonable. will 800 cover the paint & tidy up, if so not a bad deal, also not a bad deal for the landlord once the unit is vacated

pedroeibar1

I'm not an expert on Dublin retail space but the price for the premises you quote works out at +/- €400 sq.m. P.A. which appears high given the location (low footfall?) and the glut of empty property on the market. 50sq.m. seems big for a pop-up?

13 weeks @ €400 = €5,200 X 4 = €20,800 PA for 50sqm = €416 per sq.m.

Peterdalkey

pedroeibar1 wrote: »

I'm not an expert on Dublin retail space but the price for the premises you quote works out at +/- €400 sq.m. P.A. which appears high given the location (low footfall?) and the glut of empty property on the market. 50sq.m. seems big for a pop-up?

It is for clothes and is thus rather small. Rates and Service charge account for nearly 50% of the total!!

Nuttzz

rate i can imagine are high, what do you get for the "service charge"?

Peterdalkey

Nuttzz wrote: »

rate i can imagine are high, what do you get for the "service charge"?

Outside lighting, grass cutting, carpark mainainance, litter removal etc.. the usual kind of stuff for these small malls

Nuttzz

Ive found in the past the the costs associated with and value received from a service charge wildly differ.

If the service charge is 25% weekly cost then that is a lot of litter removal and grass cutting and lighting for 400 a month!

I'd be looking to knock the service charge on the head considering s/he is only there for 3 months

Peterdalkey

Mistake in the breakdown Total 400 pw,( rates and SC are €73 pw each.)

jimmii

It would be pretty pricey if it was a long term lease but I think for a short term one its fine especially given the two weeks to get the place cleaned up.

Have they done pop-ups before? They will need some pretty decent footfall to make any money from a unit that small at that price.

Peterdalkey

jimmii wrote: »

It would be pretty pricey if it was a long term lease but I think for a short term one its fine especially given the two weeks to get the place cleaned up.

Have they done pop-ups before? They will need some pretty decent footfall to make any money from a unit that small at that price.

They have a client base from doing these girly in-home fashion shows/sale/catalogue over a good number of years. A variation on the party plan thing, I suppose. The idea here is to see if it representts a longer term business opportunity. or not.

I have advised them to get properly sorted with a FB page and campaign along the lines of sandins and others recent contributions on here. they are pretty good at the neworking gig. They are not dependent of making money in the popup to live, both are very hardworking and good at the fashionista/selling side of things.

I posted on here as I reckoned it would be a big ask to cover the direct costs but I dont know enough about retail to give specific advice other than the normal commercial guff! Had hoped you would post too!

jimmii

They should comfortably cover their costs and make a little bit I would think although you never know with pop-ups they can take off some times! This year is definitely busier than this time last year in retail so hopefully they have some success with it!

Definitely have a solid Facebook page probably worth spending a few quid on a bit of advertising now while they are getting set up to create a bit of a buzz before they open.