Mixed-use developments are becoming an increasingly critical component of the commercial real estate industry. Mixed-use developments require a planning strategy that incorporates design and development that serves the economy, community, and public good — and they can open up big opportunities for an investor’s real estate portfolio.
Mixed-use properties often encourage people to use public transportation and result in increased construction of pedestrian walkways and beautification projects in the areas around them. By combining commercial uses with residential living, these projects aim to offer a variety of benefits to the community, which include:
- Improved home affordability
- Walkability between housing, workplaces, and amenities
- Stronger neighborhoods
Trends in Mixed-Use Developments
Many real estate developers are incorporating more sustainable aspects into their projects. Improvements such as energy-efficient windows and lighting, as well as features to ensure better air quality, are being built to cater to environmentally conscious tenants.
Because mixed-use developments combine housing, workspaces, and amenities, this type of real estate has shown to bolster community engagement. People who live on the premises can enjoy the convenience of working and living in proximity to each other. Furthermore, due to the development’s emphasis on walkability, many complexes are looking to expand on the healthy aspect of their community. This can include bringing in restaurants that specialize in healthy cuisine, safe areas to walk and bike, and areas where they can work out in.
As an investor, there are a number of ways you can benefit from this type of real estate.
Benefits of Mixed-Use Developments for Investors
With the popularity of these projects continuing to grow, mixed-use developments are becoming increasingly lucrative for investors. Studies by NAIOP have shown that owners have been able to charge a premium to rent spaces in these developments. Furthermore, investors can appreciate these properties for their range of other benefits:
- Mixed-use developments provide multiple streams of income to investors
- They offer close proximity to other community amenities, making them highly desirable residential spaces
- A variety of property uses (commercial, retail, residential, etc.) can lessen the risk for real estate investors
- Potential tenants and residents are drawn to walkable areas and a sense of community
Invest in Mixed-Use Developments with Plaza Companies
At Plaza Companies, we specialize in mixed-use spaces across the Phoenix metropolitan area. With almost 40 years of experience, we’ve been Valley investors’ trusted source for real estate needs. Contact us today to learn more about our properties and how we can help you make your next real estate investment.