Have an unused industrial space? It’s time to repurpose it to create a new income stream. Adaptive reuse of vacant or underutilized commercial spaces has become a lifeline for post-pandemic urban development. Many property owners are facing the challenge of increasing vacancies, and finding creative ways to monetize these spaces is more important than ever.
According to the latest report, the nationwide vacancy rate of commercial properties was 21%. That’s significantly higher than any other property type. Experts are worried that the numbers can go much higher, up to 24% by 2026.
We, as a species, have always found a way to turn rubble into gold and find a way forward, even in the roughest waters. The trick to survival in any industry is adaptability, and that holds true for real estate as well.
By repurposing vacant industrial spaces into thriving business hubs, creative studios, event venues, or co-working spaces, you are directly revitalizing the local economy and indirectly creating new opportunities for businesses and individuals alike. Win-win for both, wouldn’t you say?
Here are some business ideas to help you turn your empty commercial space into a profitable venture:
Co-Working Spaces
The explosive growth in the popularity of remote and hybrid work culture post-pandemic brought many unprecedented shifts with it. The demand for flexible office spaces is one of them. Reports say the flexible office market could potentially become a $28.32 billion industry by 2028.
If you have a vacant commercial space that is well-located and spacious enough to accommodate professionals, you can definitely consider converting it into a co-working hub.
Of course, you have to check with local zoning laws and property regulations to ensure your space can be repurposed. Once cleared, the process is straightforward—equip the space with high-speed internet, ergonomic seating, meeting rooms, and communal areas to attract freelancers, startups, and remote teams.
You can opt for flexible membership models (daily, weekly, or monthly) to make it accessible to different professionals. It’s a guaranteed way to generate a steady income throughout the year.
Many successful co-working spaces also offer additional services like virtual office solutions, mail handling, and administrative support – creating multiple revenue streams from a single property.
Specialty Coffee Shops
Americans have always loved their coffee, and by coffee, we mean filter coffee brewed in a drip machine. When we talk about the third-wave coffee revolution or specialty coffee-drinking culture, countries like Australia, New Zealand, and Nordic nations usually pop up first.
However, in recent years, the preference for specialty roasts has seen a monstrous growth in the USA. The USA’s coffee consumption is at an all-time high right now, with specialty coffee leading the way. NCA’s Spring 2024 National Coffee Data Trends (NCDT) revealed that 57% of American adults drink specialty coffee.
If you have always dreamed of owning a quaint coffee shop with gleaming espresso machines and the aroma of freshly roasted beans wafting through the air, now is the time to fulfill that dream and earn a sizable revenue from it.
How to Get Started
Start by creating a detailed business plan focusing on your unique value proposition and target market. You’ll need to invest in quality equipment, including a commercial-grade espresso machine, grinders, and brewing apparatus.
You have to ensure consistent quality in every cup and at the same time, maintain strict hygiene standards. Espresso machine parts like gaskets have to be replaced every 3 months in order to prevent leaks and maintain the right pressure during the extraction process, explains Caffewerks.
Sourcing quality B2B coffee equipment has become much easier, thanks to specialized equipment suppliers. You can purchase Original Equipment Manufacturer (OEM) parts made by leading manufacturers like Breville and La Marzocco at reasonable prices with comprehensive warranties.
Once the sales take off, you can consider introducing specialty brewing methods, roasting your own beans, or even hosting coffee appreciation workshops to create additional revenue streams.
Storage & Warehousing
The e-commerce boom shows no signs of slowing down, and with it comes an insatiable appetite for storage space. Small online businesses, particularly those operating from homes or cramped offices, are desperately seeking affordable storage solutions.
If you’ve got an empty commercial space gathering dust, this could be your golden opportunity to tap into this growing demand. Converting your space into a storage facility or mini-warehouse requires minimal renovation compared to other business models.
The primary investments would be in security systems, proper lighting, climate control (if needed), and perhaps some basic shelving units. The real game-changer here is offering value-added services that set you apart from traditional storage facilities.
Consider providing flexible short-term leases, 24/7 access options, and even basic fulfillment services for your e-commerce tenants. Many successful storage facility owners have found their sweet spot by catering to specific niches – like furniture sellers who need climate-controlled spaces or seasonal businesses requiring temporary storage during peak periods.
Important note: Location matters immensely in this business. If your space is situated near major transportation routes or in an urban center, you’re already ahead of the game. Start by reaching out to local online sellers through e-commerce forums and social media groups – you might be surprised at how quickly you can fill your space.
Indoor Farming & Vertical Gardens
For centuries, farming was tethered to open fields and rural landscapes. But with urbanization accelerating and arable land shrinking, the future of agriculture is moving upward—quite literally.
Urban agriculture, particularly hydroponics and vertical farming, is gaining serious traction. The demand for locally grown, pesticide-free produce is at an all-time high, fueled by health-conscious consumers and farm-to-table dining trends.
If your vacant space has good ventilation, access to natural or artificial grow lighting, and stable temperature control, you could transform it into an indoor farm, growing leafy greens, microgreens, herbs, or even strawberries.
Hydroponic systems eliminate the need for soil, using nutrient-rich water to accelerate growth while saving space. Local markets, restaurants, and direct-to-consumer delivery models make selling easy.
Of course, the initial setup requires a substantial investment in growing racks, irrigation, and climate control. But with lower water usage, year-round production, and increasing demand, urban farming is a sustainable, profitable way to breathe life into an unused space.
Empty Spaces With Endless Possibilities
The beauty of commercial space transformation lies in its limitless possibilities. While we’ve explored several profitable ventures, remember that the best idea is one that aligns with your local market’s needs and your personal strengths. The onus is on you to adapt, innovate, and align with modern market demands. In the right hands, a vacant space is an opportunity waiting to be seized.