3 January Bolstering Your Portfolio with Mixed-Use Properties January 3, 2024 By Melisa Rana Property Investment, Property Management commercial real estate tenants, multi-family property, office space, real estate trends, restaurant 0 BOLSTERING YOUR PROFILE WITH MIXED-USE PROPERTIES January 3, 2024 | Property Investment, Property Management | real estate trends, commercial real estate tenants, office space, restaurant, multi-family property They’ve been popping up more and more in downtowns everywhere, and it’s no surprise. Mixed-use properties, or properties that incorporate more than one asset type - often with both residential housing units and commercial units - seem to be one route investors are turning to for answers to an inconsistent and unpredictable real estate market. Mixed-use properties not only provide those traditional benefits of allowing a more diverse market of renters and a more reliable portfolio staple, but many are coming to recognize the unique draw mixed-use properties can have for tenants. The Benefits of Mixed-Use Properties With a larger barrier-to-entry for first-time homeowners today (see some of the latest research from experts over at Nerd Wallet), more people are opting to rent for longer. For renters who are used to living in more urbanized areas, mixed-use properties are becoming a natural draw. Buildings that include residential units and businesses like gyms, coffee shops, or grocery stores are extremely attractive to renters for a more convenient lifestyle. They also cut down on emissions for a greener, eco-conscious lifestyle. From a commercial tenant’s perspective, location and access to potential customers is always a major draw. One’s imagination can quickly go wild when thinking through the possible combinations for a great mixed-use setup, but it’s important to note some of the hurdles that property owners and investors have to manage as well. Many property owners and managers tend to specialize in a particular commercial sector and will likely have limited knowledge on how to handle the needs of different types of tenants. Some consider multi-family housing to be an easier type of property to start off with, for example, while other sectors require more specialized knowledge. Lining up the correct permits and checking in with the local building authority is the best way to ensure any conversions are being handled correctly. Look for Businesses that Synergize Mixed-use properties can be modeled to satisfy as many tenant needs as possible, from their workplace, to their grocers, to their gym, and even to their medical needs. As we’ve talked about recently in our article about ideal apartment amenities, many attractive property features are common across almost all sectors, such as greenery, social spaces, access to clean air and natural light, and reliable Wi-Fi. Overall, the post-pandemic mindset seems to point towards a major desire to recreate a feeling of community. Although the gradual transition of more people into cities and broad urbanization has meant that more people are living closer together, that hasn’t seemed to translate to increased social behavior (Immanual John Milton writes more about this phenomenon over at Bloomberg). Hopes are strong that the rise of mixed-use properties might mean a rise in people working, eating, and socializing in the same areas - and the return of communities. Regardless, mixed-use properties are a strong investment on the rise! We will be watching with interest to see how this trend continues. For handling the nuances of mixed-use properties, it’s best to rely on property inspectors with diverse experience in commercial and residential inspections. Let us know how we can help! Comments are closed.