Mixed-Use Properties - A Good Investment?
What is a Mixed-Use Property?
What are the Benefits of Owning a Mixed-Use Property?
There are a number of advantages to investing in a mixed use property, such as:
They’re a reduced investment risk, as different property uses can provide multiple income streams which can offer a little protection during difficult economic times.
Low Vacancy Rates
Mixed-use properties are currently in high demand with both commercial and residential tenants as they are often located in heavily populated areas that are close to local amenities. This often eases tenant acquisition and retention.
High Rental Value
When a mixed-use investment property is located in popular areas, investors can rent at higher rates.
Multiple Income Streams
When you own developments within a mixed-use property (for example an apartment and a coffee shop), you can expect revenue from two different sources. When demand fluctuates, you can always count on one income stream to supplement the other.
Investors can Potentially Switch Property Usage Down the Line
This is true for those wishing to turn commercial units into full residential properties. You will need to check with the local municipality if zoning regulations allow you to do this.
They can Reduce Costs
With a mixed-use building, it’s often the case that utilities and other bills can be managed with one service, meaningless administrative functions, and potential costs to landlords.