Commercial Revitalization: Time to Love Pop-Ups!

Many of you may wonder why your taxes have increased dramatically in the past decade. Multiple factors play into that, but a heavy hitter is the impact of teleworking and the pandemic on commercial/office space. Originally, two-thirds of revenue collection came from taxes on the commercial sector; however, this has transferred to residential without a significant alternative. Addressing affordability and the higher cost of living we are experiencing requires creativity and exploring every opportunity to tackle this disparity – hence this discussion on pop-up stores!

These retail opportunities are deliberately temporary, often introducing unique brands from other regions or countries that would not appear if they had to maintain a permanent location. You are probably familiar with traveling exhibits, farmers markets, or stores like Spirit Halloween, which show up for the Halloween season each year in various locations. Locations and events under this structure produce a slew of benefits, like increasing sales and commercial tax revenue, supporting startup potential for entrepreneurs, and helping provide brand reputation for municipalities. The Association of National Advertisers highlights how brand activation and initiatives to tap into the ever-growing potential of social media have a market of over $740 million. This coincides well with hubs like Downtown Fairfax and revitalization areas seen in the city’s Small Area Plans (SAPs). It results in more pedestrian foot traffic and drives business for all stores – both pop-up and permanent. A global survey of retailing organizations found that more than 80 percent of respondents who implemented a pop-up shop deemed it a success. More residents could engage with new brands and events, which also supports diverse options for a diverse population like ours. 

Our neighbors have already received the memo. The Fairfax County Office of Economic Revitalization developed a pop-up brochure to help guide potential owners in setting one up. This resource includes options for street festivals and parks, too. An area in the region known for its selection of pop-up shops is Fairfax Corner, which just announced that the Vermont-based King Arthur Baking Company is taking a space next to REI for a year. Local shoppers tend to love new business concepts and this method is a great integration of blending online culture with our vacant storefronts. But, to do this, we need to talk about permits.

Existing ordinances and regulations were not designed with pop-ups in mind. There are still significant costs and burdens associated with obtaining temporary special use permits and maintaining compliance. The University of Texas A&M finds that this requires localities to re-evaluate their processes to not deter these opportunities, and advocate for regional cohesiveness in its implementation. We want to build a better business environment with predictable, easy-to-understand standards. Jurisdictions like the District of Columbia are already doing this. Mayor Muriel Bowser announced earlier this year the Pop-Up Permitting (PUPs) pilot program – an initiative to create a streamlined permitting process with the Department of Buildings, allowing businesses to get their Certificate of Occupancy at a significantly faster rate. With a 15-day initial review timeframe and multiple investments through grants and the general fund, both businesses and constituents are looking forward to quite an economic transformation.

There is no single solution to complex issues like affordability and taxes. However, there are supports we can institute that can build off of one another to something better. We could be like St. Louis, which does not encourage a flexible permitting process and drives these types of businesses across state lines, or we can be more like Philadelphia, which bolsters strong public-private partnerships with organizations like Food Trust through grants – producing millions of dollars in economic impact. Our neighbors are figuring it out, and I believe we will, too!