Recently, there has been an increased demand for mixed-use property developments. Consumers’ needs are aimed at integrated lifestyle centers that cater to the prevalent “live, shop, work and play” motto..
The definition of a mixed-use property combines two or more types of real estate, such as retail and residential, or office and industrial, in a pedestrian-friendly setting. There are definite advantages to investing in mixed-use property, such as generating long-term and predictable income streams with stable returns.
Types of Mixed-Use Property for Sale in Cleveland, Ohio
These properties generally fall into one of three categories:
- Horizontal property developments consist of single-use buildings offering functions such as business, retail, and residential, all within walking distance of one another.
- Vertical property developments contain public services and retail spaces on the lower floors, offices on the middle floors, and residential or hotel units on the upper floors.
- Walkable \developments contain horizontal and vertical design, surrounded by a core property such as an outdoor plaza, market, or event space.
Although many retail businesses have gone out of business in the past few years due to the increase in ecommerce, mixed-use properties are still a good investment because they attract many market segments. When it comes to purchasing a mixed-use property, we’re always available to help.
Investing in a mixed-use property for sale in Cleveland is a decision that comes with many benefits.
- Buyers and renters are attracted to these properties because they offer a closeness to neighborhoods and living spaces and promote a sense of community.
- Even if retail stores are closing and shifting towards an online presence, businesses can fill a mixed-use property while attracting new business, such as boutiques, hair salons, movie theaters, physician’s offices, coffee shops, and more.
- Many people like mixed-use properties because they are environmentally sustainable developments. Numerous mixed-use developments repurpose old buildings and avoid overbuilding. Many people are who are looking to downsize or do not need a lot of space are have more interest in this property type because they can walk to work, stores, or favorite shops.
The mixed-use building is often the key to revitalizing otherwise underdeveloped areas. Corporations headquartered in these developments provide jobs that increase economic growth locally. Mixed-use properties can perform better in economic slumps than single-use properties. For example, a co-working space can improve social interactions, adding value to the mixed-use property. Selecting tenants from complementary industries can appeal to the community’s lifestyle, making a mixed-use property more desirable. Additionally, the revenue from tax benefits offers opportunities for growth as property values increase.
The key to maximizing your return on investment or (ROI) in a mixed-use property is tenant retention: creating an environment in which people want to live, shop, and work. The design concept should stimulate tenant interaction; tenants gain additional foot traffic by being near other property users and can strengthen their consumer base quickly. If your property suffers from vacancies, you’ll have difficulty generating and maintaining a healthy revenue stream.
If you’re interested in investing in mixed-use property, our team at Cresco Real Estate can give you a helping hand. Let our team of professionals assist you with finding the perfect property today!
To learn more about how CRESCO, Greater Cleveland’s leading commercial real estate company, can help you with your property needs, contact us at 216.520.1200, or fill out the form below. A CRESCO professional will contact you shortly.