When it comes to tenant retention in retail spaces, there are many ways commercial property managers can succeed. But when a tenant leaves, leasing agents and landlords are often pressed to find creative solutions for vacant retail space—especially if it has sat empty for an extended period. Unoccupied units can pose a strain on the property owner's finances, and they can become an eyesore for locals or a target for thieves and vagrants.

However, these issues can be remedied when the owner begins to think creatively about uses for the unused space. It can be rented out for the short or long term as an alternative to full-time tenants. This is a good option for owners lacking investors or funding to renovate and those who want to embrace the modern digital economy with innovative temporary rental space.

Keep reading to learn a few ways that Nashville commercial real estate landlords can approach vacant retail buildings to keep funds flowing and the building profitable and valuable for the community.

What to Do With a Commercial Property

If your entire commercial building or just a unit is currently without a long-term tenant, some short-term options include:

• Pop-up markets
• Pop-up eateries
• Experiential space
• Storage space
• Coworking space

Consider Temporary Pop-Up Retail Spaces

Many local businesses operate on a seasonal basis, which means they need a short-term rental for their operations. This is common in the tax industry, where accountant services are needed around tax season rather than all year long. But tax professionals aren't the only ones who can use temporary pop-up retail spaces.

Start-up designers, seasonal shops, mobile art exhibitions, and even better-known retailers will be interested in temporary outlets. Often, marketers will try to test out their newest products, concepts, and services for a short period to see how well the local scene will receive them.

Some are even interested in multiple pop-ups to discover any localized influences that may make them more susceptible to success or failure. These temporary retail outlets compile demographic research and alter their services or wares appropriately.

Pop-up retail spaces are pretty in-demand in Nashville in particular. Several websites are now dedicated to helping landlords and tenants connect concerning these spaces, and a local real estate professional can also assist.

Consider Timing When Starting a Pop-Up Leasing Search

Leasing vacant spaces for pop-ups and other businesses is popular year-round. Holiday stores, seasonal food and gifts, and summertime exploits make commercial real estate short leases and sublet spaces hot commodities. Look at the bigger picture to determine the best timing for landlords, tenants, and the community. Then, it is possible for all parties to effectively repurpose the space for expansion and growth possibilities.

Lease Length and Other Considerations

On average, leases for pop-up shops range from six weeks to a year, depending on their intended use for the space. Some retailers that are not seasonal will agree to month-to-month terms that might result in long-term occupancy. Owners and landlords should know that pop-ups and temporary businesses tend to pay less than the actual lease value.

These arrangements work best for both parties when no or slight modifications to the area are needed. In general, adding desks, shelving, chairs, and a few fixtures makes the space appealing for temporary leases. Most pop-up efforts prefer bringing in a setup that can be quickly put in place and removed upon the end of the lease period.

Vacant Properties With Kitchens Can Fit Certain Businesses

Empty spaces that have kitchen facilities open up unique opportunities for short-term use. After obtaining the proper health permits and meeting any coding restrictions by the city, one has a wide range of possible pop-up-style eateries.

One could meet the community's needs for a soup kitchen or a daycare that provides meals. Small bakers, sandwich artisans, and experienced chefs can open small dining and self-serve counters. Kitchen spaces are also excellent for training aspiring food service teams, and they tend to garner solid support from the public.

Use Empty Commercial Property as Experiential Space

Experiential spaces are a smart way to boost community morale and keep the revenue flowing. Popular zones that draw tenants and their customers include meditation studios, music and recording spaces, art collaboration rooms, lounges, pop-up farmers markets, and game rooms.

Current owners may opt to open their own side business or keep existing staff members occupied in healthy and enjoyable activities during breaks or off duty. Just like when choosing the property's location, be mindful of any zoning regulations before setting up any new concept to ensure no legal problems are encountered.

Rent the Property Out as a Storage Space

Transforming empty commercial spaces into storage facilities can offer a steady revenue stream. Entrepreneurs find these spaces ideal for housing inventory or supplies without clogging their primary operating areas. They need a secure, accessible place to keep their valuable assets.

Landlords can capitalize on this need by converting vacant shops, empty warehouses, or offices into rentable storage units. This approach doesn't just fill space—it generates stable income. Renting out these spaces as storage can be less demanding than managing a full business tenancy.

There's minimal need for extensive renovations or decor changes. Basic security upgrades, such as surveillance cameras and secure locks, are the primary requirements. Moreover, flexibility in lease terms can attract a wider range of tenants, from local startups needing temporary space to established businesses looking for long-term solutions.

Turn an Empty Office Into a Coworking Space

If you own an empty office space, turning it into a coworking space can also provide significant advantages. These modern work hubs attract freelancers, startups, and even large corporations seeking flexible office solutions. By fostering a collaborative environment, coworking spaces encourage networking and innovation among groups.

Operators can charge membership fees, which often yield higher revenue per square foot compared to traditional leases or storage rentals. They're also appealing to property owners because they keep spaces active and vibrant, which can enhance the value of the area.

Moreover, setting up a coworking space is relatively straightforward. It requires minimal structural changes—mostly aesthetic enhancements and furniture to create functional and inviting work areas. This setup supports various work styles with amenities such as shared desks, private offices, meeting rooms, and lounge areas.

Coworking spaces also adapt well to changes in the economy. They offer flexibility in membership plans, which can be attractive during economic downturns when companies cut costs and individuals seek affordable office alternatives.

The Benefits of Leasing Empty Space for Landlords

Of course, in most cases, finding a long-term renter for the open space is ideal, but these shorter-period occupancies have some benefits, including providing rental income and a good look for the unused space.

Continued Rental Income

Bringing in some type of rental income is better than collecting no rent while still leaving the possibilities open for long-term leasers when the market is more favorable. This strategy allows property owners to generate revenue while seeking long-term tenants. Short-term leases can fill the income gap, reducing the financial strain caused by vacancies. They're also flexible, enabling landlords to adjust terms and rental rates more frequently.

Moreover, these leases can be structured to cover operating costs, such as utilities and maintenance, which are often a burden during vacancies. By passing these expenses onto short-term tenants, landlords can keep their properties operational without dipping into reserves.

Makes the Space Look More Desirable

Another thing to consider is that having a bustling business on the property offers a particular aesthetic value that helps when marketing the property. It transforms an otherwise empty venue into a bustling hub, attracting foot traffic that wouldn't be possible with a vacant storefront. Their presence can help bolster consumer confidence and make commercial real estate appear more desirable when tenants looking for permanent locations start shopping.

Landlords find that these vibrant, short-term occupants often lead to increased visibility. The space becomes a topic of conversation, especially if it hosts a variety of engaging pop-ups or seasonal events. This variety not only keeps the space fresh but also casts it in a favorable light among potential long-term tenants. They'll see a property that's capable of drawing crowds and maintaining public interest.

Moreover, a regular change of tenants allows the landlord to assess and repair any damages quickly, ensuring the space always looks its best for showings. Potential renters see a well-maintained, attractive site, making it easier to envision their business thriving there.

Get Creative With Vacant Commercial Space

It's essential to run your commercial property as a business. Whether you own an office building or a retail space, lapses in occupancy can create a loss of revenue and leave you scrambling to make ends meet. Use the creative tips from this article to keep your commercial building active, attract new long-term tenants, and have successful Nashville commercial real estate investments.