Why Vacancy Is the Biggest Untapped Asset for Property Owners & Municipalities

The Hidden Cost of Doing Nothing

Across the country, main streets and downtown corridors are lined with empty storefronts. For property owners, this vacancy often feels like an unavoidable holding period until the “right” tenant comes along. For municipalities, it’s a visual and economic challenge — vacant properties dampen foot traffic, reduce tax revenues, and erode community confidence.

But at Zero Empty Spaces (ZES), we view vacancy differently. Every empty square foot is not just a liability; it’s an untapped asset waiting to be activated. When approached strategically, vacancy can deliver financial, cultural, and community benefits that ripple far beyond the property line.

The Financial Upside: Vacancy Is More Expensive Than You Think

Most landlords underestimate the true cost of keeping a space dark. Vacancy isn’t just “no rent”—it’s a compounding drain on both short-term cash flow and long-term property value.

• Lost rent: Beyond the obvious revenue you’re missing out on each month, prolonged vacancy reduces your net operating income (NOI), which directly impacts how your property is valued. Each month without a tenant chips away at the capitalization rate and depresses your asset’s market value.

• Carrying costs: Even when vacant, expenses don’t disappear. Property taxes, insurance premiums, security, and baseline utilities all continue to accrue. In some cases, vacant properties even drive up insurance costs due to heightened risk factors like vandalism, break-ins, or maintenance issues going unnoticed.

• Deferred value: Properties that remain unoccupied signal weakness in the local market and can reduce the appeal of your building to future tenants or buyers. A dark storefront drags down foot traffic, decreases perceived safety, and undermines neighborhood vibrancy—all of which erode long-term value. Lenders and appraisers take note when a property is consistently underperforming, which can hinder refinancing or limit borrowing capacity.

When you add these factors together, the true cost of vacancy can exceed far more than the rent you hoped to collect—it compounds into a hidden “vacancy tax” on your entire portfolio.

The Cultural Upside: From Empty to Engaged

Vacant spaces don’t just drain money—they drain energy. A row of dark storefronts signals disinvestment, discourages foot traffic, and subtly tells the community: “nothing is happening here.” The absence of activity creates a vacuum of possibility.

When Zero Empty Spaces (ZES) transforms a dark storefront into an artist studio, co-retail hub, or culinary pop-up, something powerful happens:

• Passersby stop and engage. A once-ignored block becomes a point of curiosity. Windows light up, creativity spills into the street, and people begin to linger instead of rushing past.

• Local artists and entrepreneurs gain visibility. Instead of creating behind closed doors, makers showcase their work in real time. For many, it’s their first chance to test ideas, connect with customers, and grow a following without the prohibitive overhead of a traditional lease.

• The neighborhood begins to feel alive again. Culture isn’t an abstract concept—it’s the feeling of energy, safety, and belonging that comes when people gather and share experiences. Vacant space activation sparks this shift almost immediately.

And this cultural energy has tangible outcomes. Districts that were once overlooked start to attract attention from locals, media, and visitors. Foot traffic increases, which benefits surrounding businesses. Perhaps most importantly, the perception of risk for prospective long-term tenants changes. When they see a district that is vibrant, creative, and active—even temporarily—they are far more willing to commit capital and sign leases.

Vacancy-to-activity is not just an artistic intervention; it’s a cultural reset that reshapes how people view a property and the neighborhood around it.

The Community Upside: Activation Builds Trust & Momentum

Vacancy erodes trust. When storefronts sit empty, residents and visitors alike begin to internalize the idea that “nothing happens here.” Over time, that perception becomes a self-fulfilling cycle: fewer people visit, fewer businesses invest, and the sense of possibility fades.

Activation—even temporary—reverses that story. When a dark space comes alive with artists, makers, or food entrepreneurs, it signals care, momentum, and future potential. Municipalities that partner with Zero Empty Spaces (ZES) see:

• Stronger downtown vibrancy through increased foot traffic. Activated spaces turn pass-through corridors into destinations. People come for the activity inside, but they also spill out to nearby restaurants, shops, and public spaces—multiplying the benefits.

• Support for small business ecosystems by lowering barriers to entry. Affordable, flexible, and temporary spaces allow local entrepreneurs to test ideas, build audiences, and develop confidence before moving into long-term leases. This pipeline of “graduating businesses” strengthens the local economy.

• Stronger civic pride as residents see visible reinvestment. When community members witness vacant spaces being turned into creative, productive uses, it builds confidence in the future of their neighborhood. The psychological impact—seeing lights on, art in the windows, and people gathering—cannot be overstated.

When a city supports activation, it sends a clear message: We care. We are open for business. This place has a future worth investing in. Over time, each activation compounds into something larger: renewed trust between residents and city leaders, momentum for further investment, and a revitalized sense of identity for the community as a whole.

The Engagement Toolkit

ZES has developed a Vacancy Engagement Checklist to help property owners and municipalities get started:

• Identify: Map vacant spaces and calculate their vacancy burn rate.

• Activate: Match spaces with short-term users (artists, makers, food entrepreneurs, mixologists).

• Promote: Market activations as opportunities for local entrepreneurship and cultural engagement, not just leasing stop-gaps.

• Measure: Track foot traffic, sales lift, tax revenue, and community engagement.

• Iterate: Use insights to refine activation models and attract permanent tenants.

The ZES Perspective

Vacancy isn’t just a problem — it’s the biggest underutilized opportunity in commercial real estate and urban development today. At Zero Empty Spaces, we’re not only proving that space activation works, but also advising municipalities and property owners through our Vacancy Activation Advisory service.

Whether you’re a landlord struggling with a stubborn vacancy, or a municipality facing a corridor of empty storefronts, ZES can help you unlock the financial, cultural, and community upside hiding in plain sight.