1. Better Property Management
Another reason for the growth in mixed-use developments is the INCLUSIVE benefit of better property management. Mixed-use developments encompass a blend of residential, commercial and industrial real estate, so a proficient management service company is generally necessary to address the diverse needs of the entire community. These benefits typically include higher quality tenants, shorter vacancy cycles, better processes, and improved support.
2. Mixed-use properties offer great amenities
Probably the most enticing aspect of mixed-use developments is their location. Generally speaking, these properties are situated in densely-packedareas that are in close proximity to existing amenities such as schools, libraries, and parks. Today’s homebuyer/renter has a strong preference for central locations with easy access to city amenities, and mixed-use developments work with these trends to create connected and inclusive communities.
3. Less Risk
Although benefits for mixed-use developments generally pertain to homebuyers, there are several advantages from a commercial buyer perspective — the most common being diversification. Because mixed-use developments offer the best of both worlds (residential and commercial real estate), investors are able to reduce the amount of risk their real estate portfolio is exposed to. Whether commercial downturns or residential, mixed-use developments are considered to be a relatively safe bet. Along with providing less risk, mixed-use developments historically offer, cash flow, longer leases, and less competition, which are ideal when seeking to diversify your portfolio.
4. Walkability/Transportation in Mixed-use developments
Far and away the biggest benefit associated with mixed-use developments is walkability. Last year, the NAR surveyed 3,000 adult Americans living in the 50 largest metropolitan areas to understand their preferences totransportation. The survey revealed that, as a whole, Americans prefer walkable communities more now than they have ever in the past. In fact, 48 percent of respondents said they would prefer to live in communities containing houses with smallyards but within easy walking distance of community amenities. For the majority oftoday’s homebuyers, walkability is at the top of their list, which is why more and more builders are constructing mixed-use developments in order to accommodate demand. In today’s real estate climate, the return of mixed-use developments isn’t a surprise, especially considering the increase in millennial homebuyers andtheir evolving criteria for homes. That said, the rebirth of mixed-usedevelopments is upon us, and investors, including commercial redevelopers, should take note when considering their next investment.