What Investors Should Look for in Mixed-Use Developments
Mixed-use development has become very popular among commercial real estate investors. These developments are properties combine commercial, residential, and industrial spaces into a single property. This is so appealing to investors because it means combining all the benefits of each type of property for the price of one. However, with the perks comes the responsibilities and it’s important for investors to choose the right mxed-use development.
When looking into a mixed-use development, here is what an investor must pay attention to:
The Property’s Design
The first thing an investor should pay attention to is how the development is set up and designed, If it is not designed properly, it could be a terrible investment. When looking at the design, consider the visual appeal and how efficient the layout is. The layout greatly impacts the vacancies that will need to be filled and the maintenance. The most common designs of mixed-use properties are a vertical mixed-use building, horizontal mixed-use blocks, and mixed-use walkable neighborhoods.
Location, Location, Location
This should go without saying, but the location is a vital component when investing in a mixed-use development. In real estate in general, location is everything. Although a property could have a promising and innovative design, it can be ruined by its location. Look for properties in areas with rising job growth, great employment rates, new housing construction, popular businesses coming to the area, and other attributes that show the neighborhood is on the rise.
In order for a mixed-use development to be a success, it’s important for it to have amenities that will bring more tenants in. This could be retail stores, restaurants, local attractions, and other things that contribute to its walkability. It should be able to provide a life-work-play type of lifestyle that is appealing to most people. When you think you have found a promising property, it should have this appeal in order for it to be a successful investment.
Looking at Price
The price can make or break the promise of a great mixed-use property. Because home and rental prices are rising, mixed-use properties should aim to be more affordable. This is what interests new tenants and brings them in. This type of property should challenge traditional housing and offer a more affordable option for people. In order to be appealing to tenants and make a profit off of your investment, you need to have the right price.