Analyzing Tone through Setting

In the following passage, the author creates a haunting atmosphere through the setting of an abandoned factory:

"Rust and decay painted the walls, the broken windows stared like hollow eyes into the faded sunlight. The hollow echoes of dripping water resonated through the cavernous space, while shadows danced across the concrete floor, as if the memories of the factory’s past were still alive, lurking in the corners."

How does this setting primarily contribute to the overall tone of the passage?