Investments in Pop-up Stores

This book focuses on two key challenges: the negative impact on property value and higher vacancy risk for pop-up shops. 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, 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-19 pandemic, is causing significant changes in brick-and-mortar retail. Real estate owners are facing higher vacancy rates, shorter rental terms, and lower rental prices. However, e-commerce has limitations that prevent it from fully replacing physical stores. Retailers are now seeking flexible and innovative spaces like pop-up stores.

In Switzerland, pop-up stores are mostly used as marketing tools or to fill vacancies, rather than as a sustainable business model, due to their negative impact on property market value.

This textbook has been recommended and developed for universitary courses in Germany, Austria and Switzerland.

In-depth analysis of the Swiss retail real estate market, considering e-commerce and COVID-19 impact Exploration of the potential of pop-up stores as alternative business model for real estate investors Proposition of alternative rental models and of strategic frameworks for developing and managing pop-up stores

Autorentext

Alessia Breda MScRE is Joint Lead Hotels & Operational Real Estate Switzerland at CBRE in Basel. 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.

He studied international business administration at the EBS University of Economics and Law (D) and wrote his Ph.D. Thesis at the University of Regensburg (D). He was appointed professor of real estate management at the University of Kufstein (A) for 5 years (2008 2013). Since 2013 he has been working as a professor of real estate investment and management at Lucerne University / HSLU (CH). Michael Truebestein is author of various publications in the area of real estate strategies, (international) real estate investments, asset management, real estate markets and digitization. In 2014, he initiated the annual study on Real Estate Investments and Asset Management of institutional investors (in cooperation with the ASIP / Swiss Pension Fund Association) and carried out the world's first tokenization of a property in 2019, the Hello World in Baar (CH). He serves as a member of the board of directors for an international real estate investment company. In 2021, 2022 and 2023, the Swiss media elected him as one of the 100 most influential and important personalities in the Swiss real estate industry.

Dr. oec. HSG Matthias Daniel Aepli is a lecturer at Lucerne University (HSLU) and an entrepreneur in the real estate sector.

He studied business administration at the university of northwestern Switzerland (FHNW) where obtained his Bachelor of Science. At the University of St. Gallen (HSG) he completed the Master of Arts program in banking and finance and received his Ph.D. with his thesis in quantitative finance.

Matthias Daniel Aepli is author of various publications in the area of real estate management, investment strategies, asset management, corporate financial management and risk management. Since 2012 Matthias Daniel Aepli has been working as a lecturer of corporate finance, risk management and real estate management at Lucerne University (HSLU) (CH). In addition to his work in academia, he serves as a member of the board of directors and is a renowned serial entrepreneur in the field of real estate.

Inhalt

Introduction.- Literature Review.- Methodology.- Results Alternative Rental Models.- Results Minimization of Vacancy Risks.- Conclusion & Discussion.- Bibliography.- Appendices.