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. One can invest in mixed-use buildings to accommodate different businesses and also tenants. Before constructing or buying mixed-use property, investors will be required to seek finances from suitable loan financing companies. Before one can qualify for commercial loans; they should have a good a good credit history which can be verified from the credit bureaus. When people invest in mixed-use property; they will reap the following benefits.
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. The commercial rent that is accrued from the mixed-use property is of higher percentages compared to a single-use property. 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. More people are likely to live in buildings that are upgraded and maintained since they look presentable. Mixed use properties have different amenities such as hospitals, schools libraries which is more convenient to the majority of people. Since most o the services can be accessed within the mixed-use building; people do not have to spend lots of money on fueling their cars.
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.
Mixed use property will also attract a specific demographic group especially the old and the millennial. Mixed use buildings provide urban lifestyles since they have restaurants, films which will be suitable to the younger generation while the older ones will access most of the services which are more convenient to their 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.