Vacant Commercial Property? Here Are Creative Ways to Fill It

Have a vacant commercial property on your hands? Here are some creative ways to fill the tenancy gap and keep the funds flowing.

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Vacant Commercial Property? Here Are Creative Ways to Fill It

Posted by Gary Ashton on Thursday, February 17th, 2022 at 5:07pm.

Creative Ways Short-Terms Uses For Vacant Retail Property in NashvilleWhen it comes to tenant retention in retail spaces, there are many ways commercial property managers can succeed. As such, 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 retail spaces 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 outside of the box concerning the use of the 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 approach vacant retail buildings to keep funds flowing and the building profitable and valuable for the community.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

Consider Temporary Pop-Up Retail Spaces

Many 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.

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 be mindful of any zoning regulations before setting up any new concept to ensure no problems with legalities are encountered.

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. 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.

These spaces can target children who aren't in school or service as a daycare, reading cooperatives, dance programs, and acting workshops in the summer months. Non-profits often turn to empty commercial storefronts for various skill-building workshops and seminars.

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.

The Benefits of Leasing Empty Retail Space for Landlords

Of course, in most cases, finding a long-term renter is ideal, but these shorter-period occupancies can undoubtedly help with loan payments, upkeep, and taxes. 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.

Another thing to consider is that having a bustling business on the property offers a particular aesthetic value. Their presence can help bolster consumer confidence and make commercial real estate appear more desirable when tenants looking for permanent locations start shopping.

Consider Timing When Starting a Pop-Up Leasing Search

Leasing vacant spaces for pop-ups and other businesses is popular year-round. Holiday stores, food and gifts seasonally, 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.

Get Creative With Vacant Retail Space

It's essential to run your retail property as a business. 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 space active, attract new long-term tenants, and have successful Nashville commercial real estate investments.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

 

Gary Ashton

The Ashton Real Estate Group of RE/MAX Advantage

The #1 RE/MAX team in the World!

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