Beyond natural vacancy: evidencing vacancy throughout market segments

Abstract

Commercial real estate vacancy is a key indicator of property market efficiency, economic performance and urban resilience. However, there has been little conceptual reflection into the abstract notion of vacancy beyond binary distinctions of natural and structural vacancy. Although useful simplifying meta-concepts, neither accounts for the internal complexity and imperfection that permeates real commercial property markets. In response, this paper builds upon a conceptual framework that describes vacancy across the commercial real estate building life-cycle – from initial construction to final demolition and redevelopment. It substantiates the vacancy typology with existing data sets published by government organisations and market information. The originality of the research rests in its utility as the first known evidence based holistic examination of commercial real estate vacancy beyond that of an abstract economic factor.