August 18, 2022

    Mixed-use properties aren’t new, but they have grown more popular recently due to changes in consumer behaviors and social standards. Having your favorite restaurants, coffee shops, and boutiques within walking distance of your home is very convenient, and many young adults worldwide opt for this over the traditional neighborhood.

    These properties allow commercial real estate property investors to diversify their portfolios while providing many opportunities and benefits. Keep reading to learn more about mixed-use real estate and why you should invest in mixed-use property.

    What Is Mixed-Use Property?

    Mixed-use property is a type of property that combines residential and commercial units, providing investors the opportunity to invest in different properties in a single investment. These developments often have homes, townhomes, or an apartment complex within walking distance of retail stores, gyms, restaurants, and local businesses.

    You will see these properties in major cities or urban areas because they make a location more convenient for residents. However, mixed-use projects can be successful in any market if you cater to the consumer. These types of areas will reduce the need for owning a car due to the multi-use properties being within walking distance of one another.

    Types of Mixed-Use Property

    When investing in mixed-use real estate, you have the opportunity to invest in different properties that will help generate business and traffic. If you’re investing in a mixed-use development, you will typically see the following three types of properties.

    Main Street

    A town’s main street is a classic example of mixed-use property. This model blends commercial and residential units within a central location. Properties are usually two- or three-story buildings that face the main street and feature a business on the ground floor and residential spaces on the upper levels.

    Live & Work

    Popular among small business owners, this mixed-use space involves residents living in the same building where they run their business. Many creatives, such as artists, photographers, or writers, will have their studios on the ground level and their loft or bedroom upstairs.

    Mixed-Use Hotels

    The latest trend with mixed-use property is combining hotel rooms with condos and retail spaces. Mixed-use hotel spaces often include retail shops, entertainment spaces, restaurants, and fitness centers for the guests and public to enjoy.

    The Benefits of Mixed-Use Property

    So, why should you invest in mixed-use property? Apart from the opportunity to diversify your portfolio and make a hefty return on your investment, there are other benefits to investing in mixed-use properties. These advantages include:

    • Less risk: The high demand for mixed-use properties makes this investment less risky. Not putting all your eggs in one basket means you won’t lose much income if one tenant decides to part ways.
    • Sustainable: Mixed-use properties are sustainable because the developments are compacted in one area and improve the walkability of a town, reducing the need for cars and limiting pollution.
    • Convenient: These properties have easy access to shops, restaurants, offices, and public transportation.
    • Diverse market: When you invest in mixed-use properties, you appeal to a wide variety of consumers, which can lead to a more diverse community that improves the building’s property value.

    Investing in mixed-use properties is the way to go. We know it can be a big commitment, but it can lead to a higher return over time. If you need help funding a mixed-use property, reach out to Val-Chris Investments to discuss mixed-use loans. With this loan, you can invest in a successful property and reap the benefits.