Vacant property takes on a new look in 2011's battered commercial real estate (CRE) market. Forget your old notions of vacant property – weedy overgrown lots, hazardous tumbledown buildings, polluted brownfields, even underperforming “grayfields” with a few remaining tenants fending off the vandals. Instead, picture high-quality structures equipped with state-of-the-art fire control systems and supervised daily by security patrols – even brand-new buildings built on spec whose developers find it difficult to attract buyers.

Today, vacant property increasingly means valuable, even prime real estate assets that need protection until new or replacement tenants are found.

Softer Market, Harder Challenges
Consider that commercial office and industrial vacancy rates still exceed 20% in some metropolitan areas, according to the National Association of Realtors' May 2011 “Commercial Real Estate Outlook.” (And more than 14 million homes remain vacant in the U.S. as of March 2011, according to the U.S. Census Bureau.) True, the CRE market has shown signs of life this year – sales rose 30% in Q1 2011 vs. Q1 2010, as historically low interest rates and minimal construction starts presented good buys for investors with cash. But despite some bright spots, overall CRE market fundamentals remain discouraging – and are expected to remain so for some time to come. High unemployment and modest economic growth persist, while businesses continue to consolidate office space and hold investment dollars close the vest.