Recently Dan Smolen did a post about AI maximizing leased space. The post had a picture of a woman golfing in an empty office. It quickly evolved (or devolved) into a series of posts about playing golf inside empty buildings. Is it silly or is it a great idea? As someone who has done it, I think it’s a little bit of both.
A few decades ago, in a beach community far far away, people in my military unit had an interesting tradition – house golf. We would rent houses on the beach in North Carolina and play golf inside the houses. Details are a bit fuzzy for what should be obvious reasons, but it was a lot of fun. I’m sure Airbnb owners are cringing at the thought, and checking their terms and conditions for those that might get the idea. Being older and wiser, I don’t advocate this in a home setting. Residential windows and golf balls don’t play well together. But something like this in a commercial setting might be a good idea.
I know several commercial spaces that were repurposed for temporary use with things like laser tag, escape rooms, sound stages, volleyball courts, or trampoline parks. Some had short runs, others became fixtures in the spaces they took over. Office golf could be a lot of fun, even if it is just a temporary novelty. A lot comes down to whether it is worth it or not.
To Lease or Not To Lease
Just because you can, doesn’t mean you should. This applies to lots of things. Is it better to wait for the right tenant, or do you settle for someone who can cover costs temporarily? Here are a few things to consider;
- Does it match with the character of the building?
- Does it impact security? or safety?
- Does it impact HVAC or plumbing considerations?
- Are there any liability issues?
- Can you get them out quickly when the time comes?
Years ago I went to a job interview for a startup that needed a technical architect. It was in a small office complex in a mixed-use affluent area. I used to work across the street at another startup so I was expecting something similar. Not only wasn’t I expecting an online sex business, I don’t know if the neighbors were either. I suspect there were some ripple effects related to the existing tenants and future leasing opportunities. The space had been vacant for a while. So was this a good leasing decision or not? I don’t know the answer to that. These are the types of issues commercial agents are going to be considering in the months ahead. The last thing you want is to see your building being raided on CNN. And remember, no one talks about fight club.
Testing the Waters
There are lots of short-term rental options. Some can be interesting and bring people back to cities for things other than work. While events like this tend to be in larger venues, things like the Van Gogh Immersive Experience require minimal physical infrastructure and are designed to be portable. Unlike some other options, it’s something you would want to promote to the community.
For the creative marketers out there, this is an opportunity to create events for those “in the know”. Rather the succumbing to accepting leases from whoever has the money, placeholder or pop-up events can be fun like minigolf, or classy like exclusive dinners or art shows. Here’s a good checklist for planning pop-up events. It’s an opportunity for both commercial real estate professionals and those looking to promote something unique and non-permanent.
Lots of Choices
Here are some short-term uses for vacant office space that could generate revenue without requiring physical modifications or redecorating:
- Ideally, co-working spaces should be more planned, but it may be a good use of space temporarily, especially if furniture is included. It could be a unique location for freelancers, remote workers, or small businesses to rent desks or meeting rooms on a short-term basis.
- General event space for workshops, seminars, networking events, or small conferences. You can partner with event organizers or market the space directly.
- Let’s have a pop-up! Allow local businesses or artisans to set up temporary retail spaces in the vacant office. This could include handmade crafts, clothing, or specialty food items.
- Rent out the space to photographers or filmmakers as a studio for photo shoots, video productions, or casting calls. Photo studios are likely to be more permanent, but for a short film or series, this could be a great opportunity.
- Large spaces and classes go together great. Lease the space to fitness instructors for classes such as yoga, Pilates, or dance. This can be especially lucrative during evenings or weekends when the office is typically empty.
- Promote the arts. Collaborate with local artists or galleries to host temporary art exhibitions or installations. This can attract art enthusiasts and create a buzz in the community.
- Learning is always a great use. Offer the space for educational purposes, such as language classes, cooking workshops, or professional development seminars.
- Have a holiday market or other occasion. Organize weekend markets where vendors can sell a variety of goods, from vintage clothing to handmade crafts, creating a bustling atmosphere and attracting foot traffic.
In the coming months, landlords and commercial real estate professionals are going to be faced with two scenarios; Fire sale, or get creative. No one wins in a fire sale, but a few innovative solutions may help bring life back to cities while the infrastructure rebuilds itself. They just need to think outside the office for solutions.
