The City of Espoo, High North Development Group / City of Kirkenes, Finest Bay Area Development and Smart City Innovation Cluster are witnessing and grappling with the significant challenge of a high number of vacant and underutilized commercial real estate properties. Post-pandemic shifts in work habits, including the rise of remote and hybrid work, have drastically reduced the demand for traditional commercial spaces. This has led to increased vacancy rates, depreciated property values, and underutilized urban spaces.
Solving this challenge is crucial for maintaining urban vibrancy, economic stability, and social well-being. Vacant commercial buildings contribute to urban decay, reduce property values, and increase maintenance costs. Moreover, the built environment is responsible for 40% of global CO2 emissions, 33% of global waste, and nearly 50% of all extracted materials. Addressing this issue is a high priority to ensure sustainable urban development, optimize the use of existing infrastructure, and prevent potential fiscal crises for municipal governments dependent on property tax revenues.
