Situations Vacant: A Conceptual Framework for Commercial Real Estate Vacancy

Abstract

Commercial real estate vacancy is a key indicator of property market efficiency, economic performance and urban resilience. However, there has been little conceptual reflection into the abstract notion of vacancy beyond binary distinctions of natural and structural vacancy. Although useful simplifying meta-concepts, neither accounts for the internal complexity and imperfection that permeates real commercial property markets. Consequently, the objective of this article is to outline a conceptual framework that describes vacancy across the commercial real estate building life-cycle -from initial construction to final demolition and redevelopment. The originality of the research rests in its utility as the first known holistic examination of commercial real estate vacancy beyond that of an abstract economic factor, while its value is explicit in the conceptual typology which can be used by researchers interested in market imperfections and consequent interventions.

Planning Adaptation: Accommodating Complexity in the Built Environment

“…What is new, however, is the rate and regularity of obsolescence and vacancy (Armstrong et al, 2021;Muldoon-Smith & Greenhalgh, 2017). Traditionally, a typical office lease would be 20-25 years long with full repairing and insurance obligations placed on the tenant.…”

A framework for sustainable adaptive reuse: understanding vacancy and underuse in existing urban buildings

“…Adaptive reuse of all types of buildings and sites has become increasingly important as an urban, architectural, and conservational strategy (Plevoets and Van Cleempoel, 2019). However, few studies have considered the topic of vacancy in urban centers per se, despite several cycles of interest in adaptive reuse to mitigate economic downturns creating supply and demand mismatches in commercial building markets (Remøy, 2010;Muldoon-Smith, 2016;Armstrong et al, 2021). The challenges of managing existing buildings are complex in mature urban environments, particularly when socioeconomic processes are at play in urban development (Muldoon-Smith, 2016).…”

“…However, few studies have considered the topic of vacancy in urban centers per se, despite several cycles of interest in adaptive reuse to mitigate economic downturns creating supply and demand mismatches in commercial building markets (Remøy, 2010;Muldoon-Smith, 2016;Armstrong et al, 2021). The challenges of managing existing buildings are complex in mature urban environments, particularly when socioeconomic processes are at play in urban development (Muldoon-Smith, 2016). Various concepts and different interpretations come into play, which contributes to the complexity.…”

“…The vacancy rate is the amount of unoccupied gross lettable floor area expressed as a percentage of the building's, or city's, total gross lettable floor area (PCA, n.d.). Calculations, however, often involve an overly simplistic characterization of space as either "vacant" or "occupied" (Muldoon-Smith, 2016). Similarly, the concept of "adaptive reuse" holds various interpretations.…”

“…Studies spanning 30 years, across different countries, have highlighted that while adaptive reuse could help create a vibrant mixed-use urban village, it should not be seen as a panacea to address vacancy (Barlow, 1993;Muldoon-Smith, 2016;Armstrong, 2020). The complexity of "vacancy" along with the benefits pertaining to "adaptive reuse options" should be understood and explored from a context-based approach in order to find plausible, sustainable solutions.…”