Real estate sector has witnessed remarkable changes in recent years since different types of buildings are constructed each day. Research indicates that more people are investing in mixed-use property due to its many benefits. Mixed use buildings comprise of residential and commercial buildings. The construction of mixed-use property requires lots of finances so investors can apply for loans from reputable companies. One of the areas that the financial institutions check out for is the credit history of the clients so people should submit accurate information to their banks. Some of the benefits of investing in mixed-use property are listed below.
Investors are guaranteed a higher return on investment when they invest in mixed-use property. The commercial rent that is accrued from the mixed-use property is of higher percentages compared to a single-use property. Business merchants are likely to record a high number of customers in mixed-use buildings since more people live or work on the buildings and will seek some services. When business merchant invests in a mixed-use property they will receive better property management services than when in stand-alone places. More people are likely to live in buildings that are upgraded and maintained since they look presentable. 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. Mixed use property helps people to save lots of money since the services are centralized.
A mixed-use building promotes efficient use of the resource such as energy since the buildings comprise of many people as opposed to single-use buildings. Mixed use property will also to diversify investors’ portfolio. Since the buildings serve as residential and commercial areas, the investors will not experience losses since most of the units will be occupied which may not be the case when dealing with buildings in stand-alone places. Mixed buildings lead to increased number of commercial tenants, and they are considered to be good tenants.
Investors in mixed-use buildings are guaranteed to attracting desirable demographic groups that include the millennial and the older generations. The younger people prefer areas that provide entertainment while the older ones will find mixed-use developments to be more convenient since they can access the services without waking for long distances due to their advanced age. Mixed sue property can withstand completion since the number of people that are investing in such venture are few compared to the single-use buildings. 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.