Temporary use

Interim use refers to the temporary, time-limited use of real estate or land that is in a planning or development phase and is intended to be put to a permanent alternative use. It bridges the gap between the end of a previous use and the start of a new, permanent use-thereby preventing vacancy, vandalism, neglect, and economic losses. Interim uses come in many forms: from pop-up stores and cultural events to community gardens, temporary office spaces, and emergency shelters.

Legal Classification and Contract Drafting

Interim uses are typically structured as fixed-term lease or license agreements. Since residential tenancy law provides special protection for tenants, commercial interim uses often involve a commercial lease agreement with a fixed term and a clear termination clause. For gratuitous licenses-such as for non-profit or cultural uses-a written agreement with a clear obligation to vacate is essential to avoid future disputes.

The most common legal challenge with interim uses is securing the right to reclaim the property: Tenancy law protections against termination-especially in long-term leases-can make it difficult to evict an interim user. We therefore recommend drafting interim use agreements carefully:

• Fixed Term: A contract with a clearly defined term ends automatically-no notice of termination is required.
• Purpose-limitation clause: Use is strictly limited to the agreed-upon purpose.
• Eviction obligation with an enforceable deed: The notarial submission clause allows for immediate eviction enforcement without court proceedings.
• Proof of liability insurance: The user must provide proof of adequate liability insurance.

Under building planning law, the temporary use must be compatible with the applicable zoning plan or the objectives of urban land-use planning. If it deviates from the type of use approved under planning law, a change of use permit is required-even if the use is only temporary.

Opportunities for Owners and Developers

Temporary use offers clear advantages for owners: rental income instead of vacancy costs, revitalization of the property and its surroundings, prevention of vandalism and deterioration due to lack of maintenance, as well as a positive public image. Vacant properties incur ongoing costs (property tax, duty to ensure public safety, minimum heating, insurance) without generating any income. Temporary use covers at least a portion of these costs.

Investors and project developers also use temporary use strategically to revitalize locations and convince investors, authorities, and the public of a development’s merits (“place-making”). A lively, well-maintained property-even if it is being used temporarily-creates a more positive perception in the neighborhood than a barricaded vacant building. This can increase acceptance of planned new construction projects during zoning plan procedures and public hearings.

Property tax also plays a role: In some municipalities, increased property taxes are being discussed for permanently unused properties (Property Tax C). A verifiable temporary use can mitigate this risk and demonstrates to authorities that the owner is actively managing the property.

Temporary Use in the Context of Urban Development in Nuremberg

Nuremberg and other Franconian cities are familiar with the phenomenon of temporary use in conversion areas (e.g., former industrial sites, barracks sites) and in inner-city development zones that have been in the planning stages for years. The City of Nuremberg has actively promoted temporary uses in the past-for example, on the AEG site in Mögeldorf, in the Eastern Downtown, and on former Bundeswehr sites in northern Nuremberg.

Cultural interim uses-studios, off-spaces, rehearsal rooms, community gardens-can significantly increase acceptance of future construction projects in the neighborhood. They strengthen a sense of community, foster local identity, and signal that the owner is fulfilling their social responsibility. Urban development companies such as WBG Nürnberg have systematically integrated interim uses into their project development processes.

Tax and Accounting Aspects of Interim Use

Rental income from interim uses is taxable-for private owners as income from renting and leasing. At the same time, the ongoing costs associated with the property can still be claimed as business expenses, provided the interim use serves the purpose of generating income. For companies that capitalize land, interim use is generally recognized as rental income without changing the property’s development status in the financial statements.

Practical Tip for Owners in Nuremberg and Franconia

Owners of commercial or development sites currently in the planning process should actively consider interim use rather than leaving the property unused. We assist in identifying suitable users, developing contractual structures, and ensuring coordination with the city.

It is important to clearly stipulate the obligation to vacate in the contract-so that development is not delayed by stubborn interim users. We generally recommend consulting a lawyer specializing in real estate law for interim uses. The costs of a properly drafted contract structure are minimal compared to the potential costs of a forced eviction.

Frequently Asked Questions

How long can a temporary use agreement be contractually agreed upon?

There is no legally defined maximum duration. Terms ranging from three months to three years are common-depending on the owner’s planning horizon and the user’s needs. It is important to have a clear time limit and a right to eviction that cannot be undermined by tenancy law protections against termination. For very short periods of less than one month, a permission agreement (rather than a lease) is also conceivable.

Do I need a building permit for temporary use?

That depends on the type of use. If the intended temporary use differs from the use approved under planning law (e.g., a residential building is to be used as an event venue), a change-of-use permit is generally required. In the case of only short-term, minor deviations, an exception or exemption may be requested under certain circumstances-this should be clarified in advance with the relevant building authority.

Who is liable for damages caused by temporary use?

Liability must be clearly defined in the contract: The temporary user should be obligated to restore the property to its original condition and provide proof of adequate liability insurance. The owner remains responsible for ensuring public safety toward third parties (e.g., neighbors, visitors) and should be able to seek recourse from the user through a corresponding clause in the contract.

How do I find suitable temporary users for a vacant property?

Suitable channels for finding temporary users include: local cultural offices and urban development agencies (which often have programs to activate vacant properties), creative industry networks, startup networks, and co-working initiatives, as well as specialized matching platforms. In Nuremberg, the City Planning Office is a good point of contact, as it often has connections to initiatives and non-profit organizations in need of space. We support our clients in connecting with potential interim users from our local network.

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