A strategy for vacant storefronts rooted in New York City is surfacing in New Canaan.
Arnold Karp, builder, real estate owner and principal at Karp Associates in New Canaan, has taken the craft paper down and washed the soap from the windows at an empty storefront in the center of New Canaan and allowed Samuel Owen Gallery in Stamford and of Underground Signs of Brooklyn to market their products.
The rent? Zero.
“I felt like we should do something interesting while we”™re waiting for our new tenant,” said Karp. “Naked space doesn”™t benefit anybody; people walking through does.”
The concept was met with disdain by area retail real estate brokers.
“The brokers all said, ”˜Don”™t do that, no one will think the space is available,”™” said Karp.
Karp shirked the warning and applied the concept, emblematic of downtown Manhattan.
“It”™s about finding the right mix that will work in the space,” said Karp. “One of the questions was the neighbors ”“ what were they going to think?”
Karp said it turns out that they want what he does: for the real estate to be filled; and for the town to look vibrant and energetic.
“When you have a big open storefront it makes the town look like it has missing teeth,” said Karp. “It also gives some excitement, while it”™s not a revenue generator, it is an exposure generator.”
The store, for now being called Pop Up Gallery, is located at 34 through 36 Elm Street in the space adjacent to J. Crew.
The worry of looking “too taken” doesn”™t seem to bother Karp, though he keeps a large “for rent” sign in the window. Karp also noted the popup business has no effect on online listings that are readily available and actively used.
“I think the reason that a lot of people don”™t do it is that it takes some effort, some time and a few dollars,” said Karp.
According to Karp, many neighbors have said they think the gallery space should remain a gallery.
“We need a retailer,” said Karp. “We”™re looking for mom and pops, all the way up to nationals; we do have 2,554 square feet right on the main drag in New Canaan.”
Real estate lawyer David Lasnick, principal of David P. Lasnick Attorney at Law in Stamford, said giving prospective tenants an idea of what the space could be is also a great benefit. Lasnick said between landlord and tenant any type of arrangement can be worked out.
“You can get someone in there and charge a per diem or take a percentage of the sales or do it pro bono,” said Lasnick. “It gives a landlord a chance to take their empty unattractive space and give it some life.”
Lasnick said the popup concept is not all that different than when a political campaign sets up for a few months in an empty storefront or when a gift-wrapping shop or holiday store temporarily opens in a mall.
“If I have empty space and short term demand, why would I leave it empty?” said Lasnick.
The space was formerly a Plaza Too, a shoe store chain that has closed many of its stores due to the economy.
“We took space that was not a gallery and Lee, being creative, helped to make it work,” said Karp, referencing his new tenant.
Samuel Owen principal Lee Milazzo used cardboard and paint to create temporary walls.
“I”™ve done this before, typically in residential and spec homes,” said Milazzo. “This wasn”™t necessarily a leap, but it”™s a nicer situation because there”™s no question of intent.” He said that the challenge with residential home showings is that they are singular-event driven; the popup shop can open its doors for customers to find at their shopping convenience.
Milazzo sells original paintings and limited-edition prints and posters.
“The foot traffic is incredible,” said Milazzo.
Milazzo, whose base gallery is in the art district of South Stamford, an area of limited foot traffic, said being in the heart of New Canaan, even for a short time, is a blessing. Milazzo has attempted to apply the popup concept before, having approached landlords in Greenwich. They were reluctant to give the high priced address for nothing, and had declined.
“Now that we”™ve done it here, I can point to Arnold (Karp) and say, ”˜Talk to him; ask him if it works,”™” said Milazzo.
Trevor MacDermid, owner of Underground Signs, said he”™s benefiting from the Fairfield connection directly and indirectly.
“Everyone in Connecticut has their own connection to New York and when we return home it’s a great way to bring our own piece of the city with us,” said MacDermid. Underground Signs is the only MTA-licensed fabricator of custom and replica NYC Subway and commuter rail signs.
Karp noted the domino effect that an empty store front can have on neighboring businesses.
“You”™ve got to have that mix and keep it moving,” said Karp. “That”™s what prospective tenants want to see, and that”™s what they”™re buying, they”™re buying what they can do in a downtown New Canaan.”
Karp said being nimble is a must, part of his deal with his temporary popup tenants is that they have to be ready to move out if a new tenant comes on board, and quick.
“We can have Lee and Trevor packed within 24 hours,” said Karp. “The reason that this works is because we have reasonable entrepreneurs who are willing to orchestrate this. In this day and age you have to be a little more creative. The concept is interesting, and I would certainly do it again in a different space.”
Lasnick said defining the relationship is important, but every popup deal will be unique. “From a purely legal perspective, if I”™m representing the landlord, I”™d want them to have insurance and maybe sign an agreement anyway and decide what you”™re responsible for and when. If a tenant comes along, they need to get out,” he said. “I would want to make sure I”™m protected in all the ways that I normally am.”
