Do you want to invest in real estate but can’t decide on a category? If you’re considering whether to focus on retail, restaurants, office space, or multi-family, you don’t necessarily have to choose. There’s one way to potentially have it all: Investing in mixed-use property.
What Is a Mixed-Use Property?
Mixed-use real estate combines two or more types of assets in a single development, according to JP Morgan Chase. Mixed-use properties have two primary structures:
- Vertical: This approach is common in large cities. You might see an apartment building with retail space on the ground floor.
- Horizontal: Imagine a strip mall with apartments, stores, and office space grouped together. This type of development is more typical in the suburbs.
This type of real estate can mix and match various use cases. You might see the following pairings, according to JP Morgan and Rocket Mortgage.
- Retail and office space
- Office space and multi-family housing
- Multi-family and retail
- Mixed-use hotels with rooms, fitness centers, restaurants, and retailers
- Two-story “main street” buildings with commercial space on the first floor and apartments on the second
Benefits of Mixed-Use Real Estate
Properties that combine multiple asset classes have enjoyed growing popularity with investors and tenants recently for various reasons. Here are some of the top reasons why mixed-use property is particularly appealing, according to JP Morgan, Rocket Mortgage, and the Institute of Real Estate Management (IREM).
- Convenience and walkability for residents
- Lots of foot traffic and built-in consumer bases for retailers
- Diverse renter bases and more reliable cash flow for property owners
If you’d like to learn more about mixed-use properties and explore available real estate in the Chicago area and beyond, the Avalon Realty Associates team is here to assist you. Our client services include real estate brokerage, and we have experience with commercial, residential, and mixed-use property.