Renting a pop-up retail space in a busy city centre is entirely possible, but requires the right approach. You temporarily rent a retail space for a period of a few weeks up to a maximum of two years, often based on a short-term lease or a licence agreement. Costs, availability and contract terms vary greatly by location and city. In this article, we answer the most frequently asked questions about renting a temporary retail space in the city centre.
What does it cost to rent a pop-up retail space in the city centre?
The rental price for a pop-up retail space in the city centre varies greatly by city, location and period. At a prime location in Amsterdam or Utrecht, you can easily pay several thousand euros per month for a small space of 50 to 100 m². In medium-sized cities such as Groningen, Breda or Arnhem, prices are lower, but even there prime locations weigh heavily in the cost calculation.
In addition to the base rent, you should account for service charges, which for retail spaces can amount to 15 to 25 percent on top of the rent. Think of contributions for security, cleaning, shopping centre marketing and management. With short-term leases, landlords sometimes charge a premium because the risk spread is smaller for them. An all-in weekly or monthly price is common in pop-up rentals, but always read carefully what is included.
What is market-conform depends on current lease data per street and city. Specialised guidance when renting retail space helps you quickly assess whether an offered price is realistic before you sign.
Where do you find available pop-up locations that are not listed on Funda?
The best pop-up locations in city centres rarely appear on public portals such as Funda. Owners of prime locations prefer to rent out vacant spaces directly or through their established network of agents, to avoid prolonged vacancy without having to publicly advertise their location. Those who only search on portals therefore see a limited and often outdated supply.
Direct channels that work better:
- Network of specialised retail agents with access to non-public listings
- Shopping centre managers looking for temporary occupancy for vacant units
- Municipal programmes for temporary use of vacant space in city centres
- Direct approach of property owners through their management organisations
KroesePaternotte is in daily contact with owners, developers and shopping centre managers throughout the Netherlands. Many of the available spaces in our network never appear on a public platform. That difference is decisive for a pop-up entrepreneur when it comes to the quality of the final location.
How long can you rent a pop-up retail space?
A pop-up retail space is typically rented for a period of one week up to a maximum of two years. The most common durations in the city centre are one to three months, but seasonal contracts of six to twelve months also occur regularly. What is legally possible depends on the type of contract the landlord uses.
There are two commonly used structures for temporary retail space:
- Licence agreement: No tenancy right, but permission to use the space. Flexible and easy to terminate, but offers the tenant less protection.
- Short-term lease: A lease agreement for a maximum of two years, which falls under the relaxed tenancy regime. Upon expiry, the contract ends by operation of law, without notice being required, provided this has been agreed in writing in advance and approved by the court or a joint application has been submitted.
If you want to stay longer than two years, you automatically fall under standard commercial tenancy law, with the associated tenant protection and longer notice periods. Always discuss the desired duration in advance, so that the contract form aligns with your plans.
What is included in a lease agreement for a temporary retail space?
A lease agreement for a temporary retail space contains at minimum agreements on the rent, duration, condition at handover, service charges and the use of the space. In pop-up contracts, additional clauses on early termination, fit-out and retail mix are common. Read every contract carefully, as the standard ROZ conditions for retail space do not always apply to short-term leases.
Specific points of attention in a pop-up lease contract:
- Rent indexation: For contracts longer than one year, the rent is often indexed annually based on the CPI.
- Reinstatement obligation: Are you required to return the space to its original condition, including removal of fit-out and signage?
- Use clause: Some landlords restrict which type of shop or product you may sell, particularly in shopping centres with a retail mix strategy.
- Break option: A clause allowing you to terminate the contract early, often linked to a notice period of one to three months.
- Security deposit or bank guarantee: With short-term leases, a higher security deposit is sometimes requested to compensate for the shorter contract.
Always have contract terms assessed before you sign. Through the listings of KroesePaternotte you can also see which locations are available and what terms are common.
How do you negotiate the rent for a pop-up location?
Negotiating the rent for a pop-up retail space starts with knowledge of the market-conform price per m² at that specific location. Those who do not know the prevailing rent in a particular street or city negotiate from a weak position. Landlords are accustomed to professional counterparties and will rarely propose a lower price themselves.
Effective negotiation arguments for temporary retail space:
- A shorter duration sometimes justifies a lower total price, but also a higher monthly price. Discuss this explicitly.
- A demonstrable image and appropriate retail mix can convince a landlord, especially if the space has been vacant for some time.
- Willingness to sign quickly and not request major renovations reduces the risk for the landlord.
- Market data on comparable rents in the same street or city provide an objective basis for your offer.
KroesePaternotte holds lease data going back to 1984 and covering virtually the entire Dutch retail market. That data forms the basis for every negotiation conducted through us. Contact us if you want to know what a market-conform price is for a specific location.
When is a pop-up shop the right choice compared to a permanent location?
A pop-up shop is the right choice when you want to test a concept, capitalise on a seasonal peak or explore a new market without the long-term commitment of a permanent lease. A permanent location is better suited to a proven concept with stable turnover and a long-term strategy for a specific city or neighbourhood.
Choose a temporary retail space when:
- You want to test a new product or brand with a physical audience before entering into a long-term lease
- You want to try out an e-commerce concept offline without immediately committing to a multi-year agreement
- You are responding to a specific season, event or holiday where a temporary presence is sufficient
- You want to explore multiple cities to determine where your target audience is most strongly present
Choose a permanent location when:
- Your concept is proven and you want to build customer loyalty and repeat purchases
- You are investing in fit-out, staff and local marketing for the long term
- You want to secure a prime location that is rarely available and is quickly taken by others
Many retailers start with a pop-up as a first step and then make the transition to a permanent location. KroesePaternotte guides retailers through both trajectories, from the first temporary space to a permanent establishment at a prime location in the Netherlands.
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