Receive regular updates via email

Creating value by changing the purpose of your property or business

How Re-Purposing Vacant Commercial Property Can Lead to Economic Growth
Cities across the country are filled with vacant commercial properties, especially those left when big box stores close. These properties can bring blight to neighborhoods. In some cases, they may stand empty for years, causing the economy in the surrounding area to decline. Some innovative companies, such as Starwood Ceruzzi, have started purchasing, renovating and re-purposing such properties. Doing this can lead to economic revitalization for the entire community in several ways.

Re-Purposing Leads to Higher Property Values
A major issue when a retail space is abandoned and left vacant is a drop in the property values of property in the surrounding area. As property values fall, more businesses may also lose money, leading to additional closures and an escalation of the problem. When a commercial property is renovated and opened again, surrounding property values normally rebound, increasing with the presence of the new businesses. This can also draw new residents as the neighborhood becomes more desirable.

Re-Purposing Brings in New Business
Large renovated and reopened retail spaces can be used to attract new big-box businesses or to be divided up for use by numerous smaller ones. They can also be transformed into distribution or manufacturing centers. All of these new uses can help revitalize the local economy of the city in which the property is located. New business means new tax revenues for cities as well as additional money being poured into the local economy, benefiting all residents in turn.

Re-Purposing Helps to Reduce Crime
A link between vacant commercial properties and increases in crime rates has been repeatedly demonstrated. As property values fall and more businesses close, the crime rate for the entire city may increase. When these vacant properties are instead purchased, renovated and leased for new business uses, research has demonstrated a corresponding drop in crime.

Re-Purposing Leads to Additional Jobs
One of the best results of rehabbing and re-purposing vacant commercial properties is bringing new jobs for people living nearby. With the size of some of these buildings, potentially hundreds of new jobs can open up to the community. This can result in lower unemployment rates and more money being spent in the local economy. The availability of new jobs can improve the welfare of everyone living in a city. This has the potential to bring struggling communities back together and on their feet. Previously unemployed people who find new jobs have also been shown to have improved senses of self-worth and higher self-esteem, which lead to fewer issues with substance abuse, domestic violence and other problems.

People like louis ceruzzi, the owner of Starwood Ceruzzi, have taken the innovative approach of purchasing these types of vacant properties. They then renovate them and help to attract new businesses, leading to a better economy and environment for all. This is an example of how such activity within the commercial real estate marketplace can actively benefit entire neighborhoods, communities and cities. It brings new life to a community along with new jobs, a better economy and less crime.

Be Sociable, Share!

Tags: , , ,

Leave a Reply