Why Mixed-Use Properties Are Growing in Popularity - Benefits for Residents & Investors
In a recent blog article, we wrote about finding the perfect fit for a mixed-use property so your retail meshes well with your multifamily interests. In a timely article of their own, National Real Estate Investor (NREI) online recently wrote about just why it is that mixed-use properties are growing in popularity as a specific type of investment property. We looked at how mixed-use properties can work to your – and your residents' – benefit...
Two (or more) Birds With One Stone
As the NREI piece notes, land and space are at a premium and urban environments are moving ever more toward supporting a convenient, walkable lifestyle. The days of having dedicated properties for each type of building may well be coming to an end, if not already in the rear view mirror. By building properties that combine retail and office space with residential multifamily living, you'll gain the benefit of a diverse property all within the same city footprint. With urban space at a premium, the mixed-use building is becoming increasingly common and popular for new construction in cities across the map. According to the NREI numbers, construction spending hit a record high last year at 1.26 trillion – and mixed-use properties made up a significant chunk of that change.
The Value of Convenience
What's more convenient than working and shopping near where you live? As we noted in our recent blog post, popular retail offerings like coffee shops, unique dining, or local grocers can be a terrific draw to both local area residents as well as those who live in the property itself. By finding the right fit of retail for your multifamily building, you can create a welcome convenience that will draw new residents and retain existing tenants. Mixed-use properties also gives you the opportunity to have office space – which allows for the convenience of literally having a minimal commute, by living where you work. The mixed-use property allows for a wide variety of options, all of which give your property the ability to become an important and inviting part of the city.
Benefits for the Investors
According to a different piece in FortuneBuilders online, mixed-use properties can be a solid and safer bet for investors. A mixed-use property provides income from both residential and commercial real estate sources and is considered less risky than other investment types. These properties typically expose an investor's portfolio to less risk, yet can generate higher income and cash flow, as well as longer leases. The FortuneBuilders article also notes that these properties face less competition as well. All these factors make mixed-use properties beneficial for investors trying to diversify.
With so many benefits for both the consumer and the investor, from achieving a convenience in the work/life balance to generating higher income and reducing risk, it's only logical if we see mixed-use properties continue to account for a large percentage of construction spending.