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Originally published Friday, December 18, 2009 at 3:28 PM

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Local shopping centers use temporary tenants to fill up for the holidays

Holiday shoppers are likely to see fewer empty stores than a few months ago, because malls are renting them out to temporary seasonal tenants that previously might have been housed in a kiosk.

Seattle Times business reporter

At Westfield Southcenter mall in Tukwila, an alpaca clothing store no longer makes do with a kiosk.

In West Seattle's Alaska Junction neighborhood, Santa Claus has set up shop in space previously occupied by a stationer.

And Christmas trees now are sold where a defunct gardening chain used to be at University Village in Seattle.

This holiday season, property owners have embraced temporary tenants to fill empty stores at shopping centers throughout the Seattle area. The short-term setups typically last for several months and can be an affordable way for stores to move merchandise during the crucial holiday season.

Earlier in the year, landlords were left with less-than-full tenant rosters after stores closed or stopped expanding amid a widespread pullback in consumer spending. As the holidays approached, persistent economic uncertainty made stores wary about committing to a long-term lease, so landlords offered temporary deals with low rents and a post-holiday out.

For now, at least, holiday shoppers are likely to see fewer empty stores than a few months ago.

"The consumer ends up getting more choice, the landlord fills empty space, and the tenant gets to open during the peak shopping season," said Susie Detmer, a real-estate broker focused on the retail sector for Cushman & Wakefield in Seattle. "Everyone has a few vacancies, but for the most part, all the malls are filled up."

A couple of notable exceptions are The Landing in Renton and The Bravern in Bellevue — new developments where vacant sites generally require more money to prepare than makes sense for a temporary tenant.

Westfield Southcenter in Tukwila has five holiday stores, including Sheepskin & Alpaca Specialties. The cold-weather clothier outgrew a kiosk at the mall two years ago and was unable to open a holiday store until the recent departure of Gordon's Jewelers.

"We didn't have the space for them last year. This year, we had the space," said General Manager Andrew Ciarrocchi.

"It brings energy to have all your storefronts active," he added.

The temporary arrangements also can be a way for brands to make personal contact with customers and test new concepts.

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Maria Christofilis, founder of the Seattle home-fragrance brand Anthousa, set up a makeshift store — a wood cabin, really — at University Village near H&M in late November.

Anthousa relies on Neiman Marcus, Barneys New York and Saks Fifth Avenue stores nationwide to sell its candles and scented oil diffusers.

The U-Village store "gives us an opportunity to talk to our customers," Christofilis said. "As a wholesaler, we're not in stores every day to hear what our customers think."

General Manager Susie Plummer said Anthousa's presence helps set U-Village apart as a place where holiday shoppers can find one-of-a-kind, local merchants. In lieu of paying rent, Anthousa will donate 10 percent of sale proceeds to Ronald McDonald House.

U-Village also made way for Bacon's Christmas Tree Farm of Bremerton after Scotts Miracle-Gro announced plans to shutter its Smith & Hawken garden chain by year's end. Smith & Hawken vacated the 4,500-square-foot store last month so that Bacon's could begin selling its trees and wreaths for the holidays, Plummer said.

Meanwhile, three formerly empty shops at Pacific Place in downtown Seattle have temporary tenants: Top Ten Toys, Packaging Specialties and the Washington state Liquor Control Board. (Pacific Place is one of four Western Washington malls where the state liquor board has opened holiday gift stores.)

Top Ten Toys owner Allen Rickert said Pacific Place approached him at his longtime location in Seattle's Greenwood neighborhood with the opportunity to set up a second, temporary shop downtown.

Rickert agreed to pay Pacific Place an undisclosed portion of sale proceeds, but no base rent. He then spent about $25,000 getting the old Club Monaco space ready for a November opening.

He expects to break even from the venture and figures that if nothing else, he has introduced Top Ten Toys to a whole new set of customers who might be inclined to visit the Greenwood location.

"The thing about a temporary store is you have no time to tweak your inventory," Rickert said. "If I were to do this again next year, I'd do much better, because I know now what sells there.

"But it would be naive to assume I'm going to come back and get the same deal every year," he added. "This has been an unusual opportunity."

In West Seattle, a property owner made way for Santa's Workshop after a stationery store closed this summer, vacating about 1,000 square feet. The Calvo family loaned the space for free to the West Seattle Junction Association, Santa's sponsor.

Turns out, the arrangement has been mutually beneficial.

West Seattle portrait photographer Donna DeRousie, who works under the name Donna Ryan Photography, signed a multiyear lease for the space Wednesday after becoming enamored with it while helping in Santa's Workshop.

"The natural light there is really lovely. It has a lot of windows," DeRousie said, noting that she outgrew a home studio nearby.

"I also thought the Calvo family was pretty cool for donating that space, and I like to deal with nice people," she said. "It has a good vibe."

Amy Martinez: 206-464-2923 or amartinez@seattletimes.com

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