Perth Voice Interactive

A GLUT of vacant shops in the Perth CBD is proving a boon for pop-up shops.

Angelo Tancredi pays a cheap rent for his Basics and Beyond pop-up in Raine Square, but rules dictate he must vacate the space every six months for at least 24 hours before being able to re-sign for another six months. So far he’s re-signed three times.

The entrepreneur, who owns another “permanent” Basics and Beyond store in North Perth, says it’s a great way to retain vibrancy in what would otherwise be dead space.

“It suits the landlord because he still has money coming in, and it suits me because we stay on the cheaper rent,” he says.

“If the landlord gets a full-price offer for the lease he can give me a week’s notice to clear out, but so far he hasn’t.

“Would you rather have empty shopfronts in Perth or a vibrant young business open for trade?”

“Landlords may agree to a lease of five months and 29 days for a ‘pop-up shop’ to temporarily occupy premises.”

He says the pop-up concept—originally touted as a cheap way for young entrepreneurs to get a leg-up—has allowed him to test the viability of expansion.

“I already have a successful store in Northbridge,” he says.

“I actually want the six-month rule banned as it is a major inconvenience to have to empty the store of all my stock every time—hopefully it can be amended.”

Small business commissioner David Eaton says if a tenant has been in continuous occupancy for more than six months he has the right to an option for a minimum five-year lease.

“Landlords may agree to a lease of five months and 29 days for a ‘pop-up shop’ to temporarily occupy premises,” he says.

“Neither party has an obligation to renew a lease upon expiry. When the tenant vacates the premises (even for just one day) on expiry of their lease of five months and 29 days they will not have been in continuous occupancy for more than six months.

“Thus the statutory option for a minimum five-year term will not apply.”

by STEPHEN POLLOCK