Owning commercial real estate allows one to depreciate it regardless of it collecting rent or not.
It is not possible to close this loophole because 322 Prince St, LLC does not have to rent the space to Joe's Boutique for $7,000 a month rather than Starbucks for $17,000 a month - it can rent that space to "JP772 Holding, Inc" out of Nevada for $10/day which would be owned by the members of 322 Price St, LLC which would satisfy the rental requirement and keep the place unoccupied until someone offers $17,000/mo in rent.