Pop-Up Leasing: Drafting Delivery, Insurance, and Maintenance Provisions, Mitigating Risks in Short-Term Agreements

Description

In recent years, the retail landscape has evolved with the rise of pop-up shops that occupy retail space for short periods, anywhere from a few hours to a few months. Sophisticated real estate counsel must be familiar with more than standard commercial leases.

The flexibility of a short-term lease agreement can hold considerable advantages over traditional leases. From a business perspective, pop-ups have compelling propositions for landlords and tenants. Even tenants and landlords accustomed to using conventional approaches to leasing can benefit from the new market dynamics and opportunities these innovative deals present. But critical to the success of these arrangements is a clear understanding of how they differ from traditional retail leases and the impact of those differences.

Given the short-term nature of the arrangement, pop-up leases will often be a license rather than a lease. Because the license merely grants a privilege of use rather than creating an estate in the property, the rights and duties between the respective parties shift. A reallocation of the associated risks follows.

Listen as our panel of experts in real property transactions provides practical guidance on how to best address the issues and balance the interests of each party involved.