Mixed-use properties that combine residential units with retail and office space are becoming more and more popular. When you think about it, it mixed-use developments make perfect sense for tenants because they give residents the opportunity to shop, dine, take care of business and find entertainment all within the pleasant, walkable area where they live. For business owners, there is greater exposure to customers and a valuable opportunity to strengthen their brand image. Investors benefit from mixed-use properties that have a strong neighborhood character and flexible rental spaces suitable for a variety of uses.
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Defining Mixed-Use Property
A mixed-use development may be a single building, a building complex or a privately developed area of a town. The concept is now common in small towns where the mixed-use property functions as a downtown hub. Mixed-use projects blend residential apartments with retail space, offices and restaurants, sometimes the addition of a movie theater or other entertainment venues like a bowling alley or a comedy club. Light industrial businesses such as medical equipment service and sales, maid services and window covering firms may also be included. Traditional mixed-use buildings provide residential rental apartments on the top floors with retail, office spaces and restaurants on the ground level.
Creating a “Livable” Community
What started out as principles of modern urbanism are now used in mixed-use developments in small towns everywhere. There is a growing trend toward integrating “livable” elements such as walkability, a mix of housing types, connectivity and energy-efficiency for a better quality of life that is designed to inspire residents, business owners and visitors. Buildings are constructed on a human scale and are surrounded by aesthetics that create a strong sense of place. Well-planned mixed-use communities incorporate pedestrian-friendly street design with slow-speed or no-car streets and hidden parking lots.
Eco-friendly technology, incorporation of natural areas and landscaping, and the use of local production are the hallmarks of mixed-use communities. Many mixed-use properties feature a public space at the center surrounded by an interconnected grid of tree-lined, pedestrian-friendly streets. The concentration of residential apartments, retail shops, office spaces, restaurants and entertainment in a compact walkable area results in minimal environmental impact, thanks to a design that promotes greater use of “green” transportation like bicycles.
The Benefits of a Mixed-Use Property
Mixed-use developments are an attractive investment because of the many benefits compared to other properties. Your professional property manager can point out the many advantages of investing in a mixed-use property.
- Benefits of Mixed-Use Properties to Residents
Tenants in mixed-use communities enjoy a higher quality of life where they can live, shop, dine, work and play. These neighborhoods provide a more relaxed environment where there is more walking and less driving, leading to a healthier lifestyle and lower stress. A main street commercial area and a town center for gathering and entertainment foster strong relationships within the community. The live/work/play aspect of a mixed-use property promotes a safer environment. Youngsters and the elderly can be more independent and enjoy easy access to goods and services without the need to drive.
Benefits of Mixed-Use Properties to Business Owner
Business owners are an integral part of mixed-use developments and benefit from increased sales from foot traffic. Smaller retail spaces attract unique, entrepreneurial businesses that add character to the neighborhood. The presence of other businesses generates excitement and the synergy that comes with cooperative marketing efforts. Residents, who spend less on gas and cars, can shop locally with the money they save. Mixed-use properties are also likely to have highly professional property managers who provide guidance in meeting local building codes. As an added benefit, business owners in a mixed-use property can choose to live right in the community where they work.
- Benefits of Mixed-Use Properties to Investors
Investors benefit from mixed-use properties that generally enjoy higher property values and selling prices. There is more leasable square footage than in other types of developments, and investors can anticipate a faster sellout because of wide-spread acceptance by consumers. Because of their compact design, mixed-use communities promote lower costs for utilities with less of a need for parking. Townships generally welcome mixed-use properties that use “smart growth” principles like creating a distinctive environment, preserving open spaces and constructing a variety of housing options. They are likely to grant quick approvals that will save you time and money.
Based on the growing popularity of mixed-use properties, we can expect to see opportunities for these lucrative investments. Gain Property Management offers professional property management services to commercial and residential investors for mixed-use and other properties. We are a licensed and insured property management company offering full service and advanced technology self-management capabilities to provide flexibility to our clients.