IN a previous article, the different types of mixed-use buildings had been highlighted. Here we look at the benefits of investing in such structures.
According to Coastal Investment’s LinkedIn site, investing in mixed-use properties – those combining residential, commercial, and industrial uses in a single building or development – can be a profitable decision for several reasons:
- Diversified income streams: Mixed-use properties can provide multiple streams of income from different types of tenants: residential, retail, and office. If one sector is not performing well, the others can help stabilise your income;
- Higher return on investment: Mixed-use properties often generate higher yields than standalone residential or commercial properties. This is partly due to the multiple income streams and the premium tenants often pay for the convenience of mixed-use living or working spaces;
- Increased demand: There is a growing demand for mixed-use developments in many urban and suburban areas. Consumers are increasingly drawn to the convenience of living, working, and shopping nearby. Similarly, companies are attracted to the potential customer base living within the same development;
- Reduced risk: Having a variety of tenants can help spread risk. For example, if a commercial tenant leaves, you still have income from the residential units while you look for a new commercial tenant;
- Potential for property value appreciation: With the growing popularity of mixed-use developments, these properties may appreciate over time;
- Community development and zoning preferences: Many municipalities prefer mixed-use developments because they promote walkability, reduce traffic, and contribute to a vibrant community. As a result, developers may find zoning and permit approvals easier for mixed-use properties; and
- Higher vacancy rates: Because of the convenience and amenities they offer, mixed-use properties often have higher vacancy rates than traditional commercial or residential buildings.
Looking for a vertical mixed-used building offering great investment potential? Check out https://www.hcktower.com/. – Jan 16, 2024