From vacancy to vulnerability: understanding the risks of empty buildings

Vacant buildings can pose active, costly risks to property owners, municipalities and insurers. Whether a building is undergoing deconstruction, reprogramming for a new use or being consolidated into another structure, the transition period creates a window of vulnerability.

How buildings become vulnerable
Vacancy often results from planned transitions like deconstruction (salvaging building materials for reuse), reprogramming (changing a building’s purpose) or consolidation (modernizing or merging spaces). While these strategies can improve efficiency or support sustainability, they leave properties exposed to loss.

The Tustin Marine base fire is one example of what can go wrong. Due to unclear ownership, disabled utilities and minimal security, the historic California blimp hangar burned for 24 days in November 2023 and cleanup costs surpassed $100 million.

Common risks
Vacant buildings face unique threats:

• Fire, smoke and water damage
• Vandalism and break-ins
• Premises liability, rodent infestation and weather
• Squatting or unauthorized access

Without regular activity, small issues can quickly escalate and insurance coverage for vacant properties is often limited or overlooked altogether.

Strategies for protection
Reducing vacant building risk requires both physical vigilance and administrative foresight, including:

• Frequent inspections – interior and exterior, including utilities and structural systems
• Security measures – patrols, cameras, signage, fencing and maintained utilities
• Contractual safeguards – clear risk transfer agreements and appropriate insurance language

But risk management doesn’t happen in a vacuum. Effective prevention is a collaborative effort. Brokers, facilities teams, code enforcement, legal advisors, security contractors and community stakeholders all play a part in minimizing loss and protecting assets.

Looking forward
Vacant properties don’t have to be vulnerable. With the right planning, partnerships and proactive strategies, owners can navigate transitions without bearing unnecessary losses.