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C+CT

How One Open-Air Center’s Holiday Pop-Ups Enhanced Leasing Efforts

February 1, 2022

During the past holiday season, The Shops at West End put a twist on holiday pop-up incubators. It activated vacant space throughout the St. Louis Park, Minnesota, center by offering space to local businesses for a nominal utilities fee and a small, refundable deposit. The move not only lifted occupancy during the most recent holiday season above 80%, it also activated space on behalf of traditional-lease tenants and gave community businesses an opportunity to experience brick-and-mortar life.

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Stephanie Drews — vice president of regional asset management for property owner American Finance Trust, which will become The Necessity Retail REIT when its acquisition of a portfolio from CIM Real Estate Finance Trust closes — categorized the pop-ups not only as an opportunity for small businesses to join the center but as a creative way for the center to enhance leasing.

Businesses began to open the pop-ups in November 2021, and by the marketplace’s Dec. 4 holiday event and tree lighting, nine pop-ups were operating in previously vacant space. “Having these shops and activities open during the holidays has encouraged interest,” Drews said. Throughout the rest of 2021, the center had signed three leases. Then, in December, it signed three more: infrared fitness studio Hotworx, which operates 24 hours per day, and restaurants Nautical Bowls and Urban Wok. And now five of the nine holiday pop-ups have signed or are considering longer leases: Ooh La La Boutique, Lost in the Forrest and Muddy Paws Cheesecake have signed 13-month leases, another is in negotiations and yet another is a possibility. Meanwhile, the center has letters of intent for traditional leases from four more tenants that would even further diversify the tenant mix: a bridal shop, a Pilates studio, a wellness spa and a restaurant.

Erika Bennett — senior regional property manager at Hiffman National and the on-site property manager of the 381,804-square-foot, open-air shopping center — cold-called local small businesses, and her efforts brought life to 30,324 square feet during the holiday season.

All told, the pop-up program brought more than 75 small businesses to The Shops at West End. Some took singular spaces, but a large portion of those 75 businesses came by way of three occupants that took about half the pop-up space: Mn Founders Collective, Muddy Paws Cheesecake and Grow to Life.

Nascent nonprofit Mn Founders Collective, which is still running in the space and which is in talks for a longer lease, serves as a launching pad for start-up founders. Its 3,200-square-foot space is divided into three sections: one where the entrepreneurs sell their goods during events and open houses, an event space where they showcase their businesses for investors, and private offices for start-ups that “can’t afford space and don’t want to be in co-working,” said president and CEO Jenn Bonine.

Muddy Paws Cheesecake occupied 8,000 square feet for a holiday market, bringing on 25 other local artisans, a thrift store and a toy and food drive, according to Muddy Paws owner Tami Cabrera. It has signed on for another 13 months. Photo credit: Allways FP

Local cannabis retailer Grow to Life took 3,800 square feet for a Holistic Healing Fair, which sold handcrafted goods and offered healing practices led by certified practitioners. The goal was to “expand our reach and be a part of another community of people that is close to home,” said Jamie McKee, who handles operations and marketing for Grow to Life. Photo credit: Grow to Life

Lost in the Forrest occupied its own pop-up storefront during the holidays at The Shops at West End, and it has signed a 13-month lease to stay on. Photo credit: Allways FP

Market 12 — which sells home decor, furniture, art, plants and more — also established its own pop-up shop at The Shops at West End for the holidays. Photo credit: Allways FP

Foot traffic at the center ticked up noticeably during the holidays, according to Bennett. St. Louis Park Mayor Jake Spano noted: “Pop-up concepts like this bring energetic options to the West End, which visitors have come to expect. Any ideas that attract further commercial interest within the shopping center while bringing in more people and creativity are welcome. Pop-up concepts also offer an opportunity for small businesses and entrepreneurs to test the waters and support BIPOC small businesses and entrepreneurs.”

For the small business participants, the pop-ups showcased services and merchandise in a physical space. The initiative particularly benefited businesses that otherwise could not have afforded a storefront. Trish Foster, marketing director at community booster organization Discover St. Louis Park, cited Black- and woman-owned Koko Kouture, whose first brick-and-mortar presence was a holiday pop-up at The Shops at West End. It was “just a wonderful venture, both for the businesses and I think for the community as a whole,” Foster said.

—Additional reporting by Commerce + Communities Today editor-in-chief Amanda Metcalf

By Lauren Elkies Schram

Contributor, Commerce + Communities Today

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