Advantages of Investing in Mixed-Use Developments

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Mixed-use developments have been springing up across the United States, and they continue to be a popular choice amongst tenants and realtors. This is primarily due to their impact on rejuvenating communities and creating spaces that are convenient for people to work, live, and shop. These developments bring people together, but there are several things to consider before investing in these properties.

What Are Mixed-Use Developments

Mixed-use developments are properties that can incorporate different types of property, such as retail, office, hotel, residential, and medical offices. The idea is to create a community that complements each other where residents engage with the businesses below them and the businesses provide quality products and services in return.

There are several forms of mixed-use developments – vertical, horizontal, and mixed-use walkable areas.

Vertical Mixed-Use Development – a vertical development will combine different uses within one building. Providing more public uses on the lower floor, like retail shops, restaurants, and other commercial businesses. On the upper level, it provides private uses such as residential units, hotel rooms, and/or office space.

Horizontal Mixed-Use Development – Consists of single-use buildings within a mixed-use zoning district, which provides a range of land uses in a single project. They typically provide a variety of complementary and integrated uses that are walkable within a neighborhood, land, or development project.

Mixed-Use Walkable Areas – Simply put, these developments are a combination of vertical and horizontal developments. They are typically within a 10-minute walking distance from core activities, such as commercial and residential properties. 

Advantages of Mixed-Use Development

These types of properties provide several advantages for those who decide to invest in its real estate. For developers, the risk is spread around across different markets, which provides some security if one isn’t doing well. For example, if the office portion of the property is tanking, they can rely on the other markets to keep them afloat.

Additionally, the different businesses work in synergy with one another. According to Gov 1, these developments can resolve a dilemma of modern urban real estate by imploring people to conveniently interact with each other through commerce.  Tenants gain additional foot traffic by being near other complementary properties that strengthen their brand. 

Become a part of a Mixed-Use Development with Plaza Companies

With mixed-use properties becoming a popular commodity in the U.S., you may be considering a transition into this type of real estate. At Plaza Companies, we specialize in mixed-use spaces across the Phoenix Metropolitan area. By partnering with us, you can expect expert agents working for you to maximize your profits with your investment. Contact us today to get started!

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Whether you are looking to us for management, leasing or development services, we can help you find the perfect space. With almost 40 years of experience, you can trust Plaza Companies to assist you with your real estate needs.

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