Old couple grabbing small space outside (4-3)
I believe the answer is:
open-air
'outside' is the definition.
(open air is a kind of outside)
'old couple grabbing small space' is the wordplay.
'old' becomes 'o' (common abbreviation eg in OE for Old English).
'couple' becomes 'pair' (synonyms).
'grabbing' means one lot of letters goes inside another.
'small space' becomes 'en' (in printing, a space as wide as a letter 'n').
'pair' enclosing 'en' is 'penair'.
'o'+'penair'='OPEN-AIR'
(Other definitions for open-air that I've seen before include "Outdoor" , "Alfresco" , "Exposed to the elements" , "Taking place outdoors" , "not below roof" .)