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Temporary Treat

An invasion of ghosts, ghouls, and zombies is welcome at abandoned big-box stores, where Halloween shops are helping landlords and tenants alike.

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The darkness that fell across the retail landscape when big-box stores started closing in the economic downturn has lifted temporarily for landlords.

Temporary Halloween stores, which in past years haven’t had as many available spaces to choose from, are taking over the vacated spots of shuttered Linens ’n Things, Circuit City, and other big-box stores. This is helping landlords not only fill up empty spaces and earn rent, but also avoid big financial penalties by restarting the clock on agreements with other tenants to fill the larger retail spaces within a certain time period.

And the locations are perfect for a business based on just a few weeks’ worth of traffic.

Although Livonia, Michigan-based Gags & Games Inc., which owns Halloween USA stores, is just one of many companies that operate temporary stores, marketing director Don Rose said the big-box locations are ideal for these stores, which can attract some new shoppers to the centers.

“We’re a temporary business, so it’s difficult for us to spend a lot in marketing and advertising dollars to drive revenue,” Rose said. “These big-box locations draw a lot of traffic, and they have great signage.”

The temporary Halloween stores also help neighboring stores, said Linda Carrick-Warfield, director of retail sales and a leasing associate with Colliers Arnold in Orlando, Florida. “Instead of having an empty box sitting there, you’ve got more traffic—and that brings more attention to the site.”

Dean Tendrich, chief marketing officer for Hurricane Grill & Wings, which has a location at Orlando Square shopping center in southwest Orlando near one of the temporary Halloween stores, agreed. “The more traffic there is in the center, the more opportunity you have to sell your brand.”

In addition, existing tenants could work together with the temporary stores, such as having customers who spend a certain amount on Halloween items get discounts at the neighboring stores, he said.

Moreover, the temporary Halloween stores “pay a good rent,” said Jorge Rodriguez, senior retail associate with CB Richard Ellis in Orlando, who brokered the Halloween USA deal at the Orlando Square on behalf of landlord Kitson & Partners LLC. He declined to share financial terms of the lease.

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