Mixed-use property has long been an appealing solution for sprawling cities and residential zoning, offering residents proximity to local businesses and amenities without the need to drive, thereby cutting back on traffic congestion and greenhouse emissions.
Urbanization, shifting priorities of both millennials and baby boomers, an increasing demand for rentals and co-working spaces as well as an emphasis on sustainability are factors driving this trend to success.
What is it?
Mixed use properties refers to buildings or land developments which combine both commercial and residential space within one structure or land development. Sometimes this space is known as live-work properties; other terms used include vertical mixed use developments and horizontal mixed use developments.
These properties can often be found in urban settings, where their purpose is to foster a sense of community among both residents and visitors alike. Their designs range in size and purpose - from storefront buildings with apartments above to high-rise towers or shopping centers. No matter their purpose or size, these developments have proven extremely popular among homebuyers and renters who appreciate having all their essential needs close by within reach.
Mixed-use properties seek to create communities that are both safe and livable by providing easy access to amenities like restaurants, coffee shops, and retail stores. This is particularly advantageous for people with reduced mobility who rely on public transit or those without vehicles who don't drive, as it eliminates parking costs or hassle. Furthermore, such developments often reside within densely-packed areas - ideal for people wanting closer proximity to work or school.
Mixed-use property offers another advantage for developers looking to diversify their portfolio and lower risk. When the commercial market falters, mixed-use buildings provide relief in the form of residential tenants that can help offset any drop in income caused by its decline. As such, mixed-use properties provide the perfect way for developers to diversify their portfolio and reduce risks.
Commercial mixed-use space can be an invaluable investment for businesses seeking to maximize return. These properties are specifically designed to increase foot traffic and draw in new customers - perfect for retailers, restaurants and office spaces looking for increased foot traffic and customer interest. Furthermore, mixed-use developments may attract millennials and baby boomers who desire a convenient living environment.
Importantly, mixed-use properties tend to fall under more stringent zoning regulations than traditional commercial real estate and thus require more expertise for management - potentially increasing both construction costs and ongoing expenses.
Advantages to communities and people for walkability and livability
Mixed-use property continues to gain in popularity due to its numerous advantages. These developments combine commercial, retail and residential spaces into either one building or multiple parcels of land - giving a neighborhood more economic stimulus, more community engagement opportunities and sustainability features.
Bus and train stations, airports, highways and major roads are popular locations for these facilities as they allow commuters to quickly access these resources while giving residents easy access to shopping, dining, working and socializing within their neighborhood.
Walkability is one of the key advantages of living in a mixed-use development, offering convenience of having restaurants and shops within walking distance to reduce commuting costs and emissions from driving. Furthermore, walkability encourages an active lifestyle as people are more likely to opt for walking or public transit instead of cars - especially among Millennials who tend to prefer urban settings over suburbia.
Zoning laws have also relaxed, permitting more mixed-use properties combining residential and commercial elements to be built in areas that were traditionally residential only. This trend can be found throughout many cities and towns today - storefronts featuring apartments above them or single family homes featuring doctor's offices on their ground floors can often be found.
Mixed-use commercial real estate investments offer investors multiple income sources; should one type of tenant not perform as expected, another may pick up the slack and help reduce overall risk for investors as they are no longer dependent on a single source.
Mixed-use properties present some unique challenges when investing in them, including higher competition for tenants. This can lead to lower occupancy rates and, consequently, revenue losses. Therefore, investors must conduct extensive market research before purchasing any mixed-use property; including considering factors like economic uncertainty, consumer trends and changing demographics as a guide in selecting properties which will be successful investments.
Zoning
Mixed use property refers to any development which incorporates different property types within one development, such as apartments and retail stores, which can be arranged horizontally or vertically, with different uses being located throughout. This type of development ranges from small buildings with just a few apartments and storefronts up to large high-rise towers or shopping centers; urban communities have found them especially appealing due to their ability to foster walkability while decreasing dependence on cars - thus decreasing congestion and pollution levels.
Under pressure to improve social standards and to provide easier access to amenities, more communities are permitting commercial mixed use properties into residential neighborhoods, giving residents easier access to shopping, dining and work than would otherwise be possible. This gives residents greater convenience for all aspects of life in one convenient spot.
Manage complex projects requires an experienced and qualified team. Ensuring compliance with zoning, building, and environmental regulations is key for their successful completion, so keeping detailed records of permit applications, approvals, inspection reports helps streamline this regulatory process and provides clarity for you team.
Commercial mixed use real estate attracts both tenants and investors due to its diversity. Demand for these properties often leads to long wait lists to secure apartments or retail space; once tenants move in they often stay for an extended period, forming an atmosphere of community that fosters social connections within these buildings with recreational features that encourage an engaging atmosphere.
These developments not only promote local economies but are also key components in increasing sustainability. By consolidating various functions into one building, these developments allow for efficient use of space and resources while decreasing energy consumption and waste production. Furthermore, they often allow recycling materials on site, eliminating transportation expenses altogether.
Zoning laws can present an obstacle for mixed-use development in urban areas. Zoning regulations typically are written with specific goals in mind, such as restricting the number of floors for buildings, the size of individual units and how many people may live there. To get around this restriction, developers can file for variance to change current zoning laws by applying for a variance variance review by the Board of Adjustment (BZA) which can then be appealed before reaching city council approval.
Finding parcels for mixed use development
Developers and builders in the US can find parcels zoned for mixed-use development through various strategies. These strategies often involve identifying sites that are either pre-designated for mixed-use zones or permitted conditionally by the city. Cities may offer special incentives, such as tax breaks, to encourage mixed-use projects and often have economic development commissions to support these initiatives.
A standout tool in this search is Plotzy. Plotzy simplifies the process by allowing users to search for parcels based on what uses are permitted by right or conditionally, according to the municipality's zoning laws. This platform provides comprehensive information on zoning, helping developers and builders understand the full potential of each property. Whether you are looking to renovate existing structures or build new complexes that combine commercial and residential spaces, Plotzy offers a streamlined way to locate parcels that meet specific zoning requirements.
Mixed-use developments appeal to a broad range of consumers, including families, young professionals, and seniors. These residents prefer communities where they can access all essential amenities without extensive travel, thus saving on transportation costs and reducing environmental impact by lessening car dependency.
These properties enhance social interactions among occupants and visitors, featuring plazas or parks that encourage casual and relaxed gatherings. Such spaces can also host community festivals, strengthening the sense of community among residents and guests.
For investors, mixed-use properties are attractive because they provide multiple income streams from both commercial and residential tenants. This diversification reduces the risk associated with relying on a single tenant type, thereby stabilizing cash flow even if one market sector experiences a downturn. Additionally, the varied tenant mix found in mixed-use developments can result in longer tenant retention, fostering a vibrant and stable community atmosphere.
