Squatting on commercial property has become a growing issue across the United States. While squatters have historically been associated with abandoned homes, the problem has expanded to include office buildings, retail centers, warehouses, and industrial lots. Property owners are facing mounting challenges tied to eviction delays, rising homelessness, and declining commercial demand in some regions. Understanding where these problems are most severe can help investors, landlords, and communities prepare for risks and solutions.
Why Squatters Target Commercial Properties
Commercial spaces are often easier targets than residential homes because they are:
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Vacant for long periods, particularly in high-vacancy retail and office markets
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Difficult to monitor, especially in industrial zones and strip malls
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Expensive to secure, requiring cameras, guards, or boarding up entrances
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Caught in legal gray areas, where removal requires slow eviction rather than immediate police action
The surge in remote work, retail closures, and urban decline has left tens of thousands of square feet of commercial property vulnerable to squatting.
State-by-State Overview of Commercial Squatting
The problem is widespread but varies by state depending on vacancy rates, homelessness levels, and legal enforcement. Below is a breakdown of notable patterns.
| State | Where Squatters Target Commercial Property | Key Issues |
|---|---|---|
| California | LA, SF, Oakland strip malls, warehouses | High homelessness, pro-tenant laws, long evictions |
| Oregon | Portland industrial sites, retail corridors | Activist squats, police enforcement limits |
| Washington | Seattle retail and warehouse areas | Urban encampments spilling into vacant buildings |
| Nevada | Las Vegas shuttered motels, retail space | Tourism downturns leave properties vacant |
| Arizona | Phoenix shopping centers, warehouses | Rapid growth with weak oversight in some areas |
| Texas | Houston & Dallas office parks, malls | Oversupply of commercial space, eviction delays |
| Florida | Miami & Orlando seasonal properties | Seasonal abandonment, repeated re-entry |
| New York | NYC office towers, closed retail | Pandemic office vacancies, complicated evictions |
| New Jersey | Newark & Camden warehouses | Industrial decline, high poverty |
| Pennsylvania | Philadelphia retail corridors | Pandemic closures, limited enforcement |
| Illinois | Chicago’s South & West Side factories | Vacant corridors tied to population loss |
| Michigan | Detroit warehouses, old auto plants | Long-term industrial decline |
| Ohio | Cleveland & Cincinnati industrial space | Vacancy, theft, and fire hazards |
| Georgia | Atlanta suburban malls, office parks | Growing homelessness, underused spaces |
| Louisiana | New Orleans empty retail & warehouses | Vacancy in hurricane-damaged areas |
| Missouri | St. Louis old factories, strip centers | Shrinking population, weak property oversight |
| Colorado | Denver industrial & retail properties | Rising homelessness, squatters in warehouses |
| Massachusetts | Boston retail & mixed-use spaces | Squats in closed restaurants, shops |
| North Carolina | Charlotte & Raleigh strip malls | Rapid growth, uneven code enforcement |
| South Carolina | Columbia & Charleston retail space | Vacant commercial properties exploited |
| Arizona | Tucson old warehouses | Border region pressures, weak enforcement |
(Other states also experience commercial squatting, but the problem is concentrated in urbanized or declining economic areas where vacancy and homelessness intersect.)
Legal Complications
The legal framework around commercial squatting varies widely. In some states, squatters are treated as trespassers who can be immediately removed. In others, landlords must go through lengthy eviction proceedings even when the property is clearly not intended for habitation. Squatters sometimes exploit adverse possession laws, claiming rights if they occupy a space long enough without challenge. States like California and New York have drawn attention for cases where squatters successfully delayed or blocked property owners from reclaiming their commercial assets.
Impact on Property Owners
Commercial squatting creates multiple risks:
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Property damage: Fires, broken plumbing, graffiti, and theft of copper wiring are common.
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Legal liability: Owners may face lawsuits if squatters are injured.
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Insurance disputes: Carriers may deny claims for damages caused by illegal occupancy.
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Reduced marketability: Future tenants often avoid properties with squatting histories.
These risks can turn investment properties into financial liabilities.
Regional Trends
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West Coast: California, Oregon, and Washington see the most intense issues due to homelessness, vacancy, and political hesitation on aggressive enforcement.
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Rust Belt: Michigan, Ohio, and Illinois face chronic problems in abandoned factories and warehouses.
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Sunbelt: Texas, Florida, and Georgia report commercial squatting tied to oversupply of retail and rapid population growth.
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Northeast: New York, New Jersey, and Pennsylvania are struggling with post-pandemic retail and office vacancies that attract squatters.
Solutions and Prevention
Property owners and municipalities are responding with different approaches:
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Frequent inspections and maintenance to signal occupancy
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Security patrols, fencing, and cameras for vulnerable sites
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Fast-track eviction laws in some states to distinguish commercial from residential squatters
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Public-private partnerships where nonprofits help relocate squatters into temporary shelters
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Redevelopment incentives to reduce long-term vacancies
While these measures help, they are often reactive. The root drivers—homelessness, economic decline, and vacant property surpluses—continue to feed the problem.
International Perspective
Commercial squatting is also common internationally. In London and Berlin, squatted office buildings have been converted into activist hubs or community centers. In Spain, abandoned retail and industrial buildings have housed migrant groups. These examples highlight how commercial squatting often reflects deeper structural issues in housing and real estate markets.
Conclusion
Squatting on commercial property is not isolated to a few cities—it is a nationwide trend shaped by homelessness, vacancy, and legal loopholes. States with high vacancy rates, major urban centers, or tenant-friendly eviction laws are hit the hardest. Until cities address both the housing shortage and the long-term surplus of unused commercial real estate, squatters will continue to find opportunities in neglected office towers, empty warehouses, and shuttered shopping centers.