The Pokémon spawned by the incense do not exist in the "Nearby" box. It spawns new Pokémon for a trainer to catch. The incense will spawn 1 Pokémon every 5 minutes if the trainer is standing still, and 1 Pokémon every 1 minute or 200 meters (whichever happens first) while moving. Other trainers are not affected by this item. Incense can't be obtained from PokéStops, but it can be purchased from the Shop.