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Mixed-use properties were, at some point, seen as a development that wasn’t favourable. Placing apartments above a store were seen as tacky and ruined a somewhat industrial-looking landscape. It didn’t look impressive for a residential area and it didn’t look serious enough as a business sector. As a result, these mixed-use developments were shunned in favour of suburbs that were dedicated to housing, and noisy business areas where only the shops resided.
However, most mixed-use developments are seeing a resurgence as of late due to the ludicrous costs of living in a city. Despite the many advantages and conveniences it offers, living in the city is simply far too expensive due to the amount you have to pay for space, hence why developers are looking for cheaper solutions such as a mixed-use property.
However, a mixed-use property comes as a bundle and you typically don’t invest in just the residential half or the commercial half. Instead, you get it as a bundle which might not be the best solution, but it offers some amazing advantages that you may not be thinking about.
Diversifying Your Portfolio
The first major advantage of bundling them both is the diversification of your portfolio. Adding a commercial property investment to your portfolio will help you score more clients in the future and could give you a path to commercial development in the future, a lucrative business in its own right. It’s even better if you work with well-known property developers who specialise in a mixed-use development, such as Joseph Nahas of Coronation Property. Expanding your portfolio is always a fantastic idea and with a mixed-use property, you get a double-whammy package for a low price.
Commercial Properties Stick
Most commercial properties and retail units are rented out for very long lease periods, often spanning 10 to 20 years. This makes them a time-efficient investment due to how little work you personally have to put into the investment. You find a client, set up a contract and then you’ve very little to worry about over the next decade or two. Unlike with residential properties where you have to find new tenants every 6 to 12 months, it’s a stable investment that guarantees a return due to how many new startups and businesses are popping up as of late.
Easy Access Makes Them Popular
Unlike suburbs which are a considerable distance away from the city, mixed-use properties have a premium attached to them due to their location. Since they’re placed in the thick of a city, they’re often worth a lot of money for just the residential half alone. This makes them a worthwhile investment even if your first concern is expanding your residential portfolio. The added bonus of getting a commercial property alongside it is just the cherry on top, offering you a prime location that will be highly sought after. Since many businesses want foot traffic exposure, they want to be in the middle of a city which is where most mixed-use developments are. This means that your location is enviable for both families and business owners, meaning it will sell very quickly and be a popular listing.