Real estate sector has witnessed remarkable changes in recent years since different types of buildings are constructed each day. People are finding mixed-use property as a worthy investment. Mixed use buildings can be used for commercial purposes as well as rental apartments. When planning to construct mixed-use buildings, it is crucial to contact suitable loan financing companies since such investments require substantial start-up capital. Before one can qualify for commercial loans; they should have a good a good credit history which can be verified from the credit bureaus. Mixed use property has numerous benefits some of them are highlighted below.
Business merchants that invest in mixed-use property will charge higher rent to commercial components, and this will lead to increased return on investment as opposed to a single use property. In most cases commercial rents that will be charged on mixed-use property range from 6 to 12 percent compared to residential property that change from 1 to 4 percent which is low. Mixed use buildings expose different businesses to customers since there is a lot of foot traffic within the buildings. The other benefit of investing in mixed-use benefits is that it leads to better property management. This includes maintenance and upgrades, and this will be beneficial to the investors since more clients will occupy the buildings. These types of property are characterized by the presence of different amenities so people can access essential service such as medical facilities, libraries with ease. People will save lots of money since the services are only a walking distance.
People will use the resource such as energy, trash disposal more efficiently since residential and commercial tenants are at one location. Mixed use property will also to diversify investors’ portfolio. This will minimize the risk that the real estate portfolio is exposed to. Investors are encouraged to invest in a mixed-use property since the upkeep and maintenance costs associated with commercial tenant are low.
The young and the old generation will find the mixed-use building to be suitable areas to operate from. Mixed use development will be occupied by both the young and older generation due to varying reasons. With increased competition in the real estate industry, mixed-use property remains unique since few people can afford the capital to establish or buy such property. The high profits that are achieved from mixed-use buildings cannot be compared to their counterparts in single or stand-alone buildings. Real estate investors should move with the current consumer demands and invest in the mixed-use building.