The land value appreciates over time regardless of use. Why worry about setting up a business and trying to make money when you could do nothing and make a lot of money 10 years down the line when you sell?
That tells me that taxes are too low. Not necessarily taxes for used property, but vacant/unused property could be taxed more effectively to promote development.
It's terrible in Toronto, you'll see complete sections of the street literally empty since there's so many tax benefits for empty commercial-retail space