Mixed Use Development Strategies That WorkLand Deveopment Training
December 10, 2012 — 1,741 views
The Trend of Mixed Use Development Catches on in America despite Earlier Community Restraints
Gone are the days when mixed housing development was seen as an imposition by many people in single housing communities. Businesses in mixed housing communities draw profits from a steady flow of customers. Residents are pacified by the convenience of pharmacies, grocery stores and health facilities among other well needed and nearby services. Hospitals and hotels as well as a mixed use of other businesses continue to conduct thriving businesses even while America’s economy experiences hiccups.
Job Opportunities in Mixed Use Developments
Local citizens are able to find job opportunities near home and have come to realize how mixed use development regenerate their cities and towns. The idea of this type of development is growing even more popular as more businesses are choosing retail or office space in specific buildings. Buyers now realize that the combined purchase of both office and retail space is a financially sound investment. They must, however, examine all the advantages and disadvantages before signing on the dotted line.
Lengthy Leases for Retail Units
A lengthy lease of up to 10 years is realized by investing in commercial property offices. Investing in retail units affords a lengthier lease advantage of over 20 years, which means you will not have to seek new lease holders every year. On the other hand, residential property investment features short-term leases of up to 12 months. Use ample tax breaks and high rental rates to sweeten the pot and attract commercial property investors.
Banks See Commercial Property Investment as Risky Business
Be aware that securing a commercial property investment is far from being an easy task. Banks in particular regard mixed use developments as being a risky way of investing that puts the onus on you to make sure the lessees remain in business. The banks are more favorable to lending traditional single use developments money, since they see that business avenue as a safe construction route that will earn a profit.
If you are buying commercial property for the first time, you should exercise caution and definitely seek advice from others who have already tested the market. Learn whether they are indeed satisfied with their investment in office or retail units.
Mixed Use Development Puts Criminals on the Run
When all is said and done, mixed-use developments are highly regarded for the impact they have on economically dying cities. The developments bring economic benefits by introducing new workers and residents. Pedestrians begin to walk the streets again, and parks provide a restful environment for families with children. It is believed that all of this activity tends to reduce crime. Criminals prefer not to be seen in active environments, and cities enjoy the rejuvenation of cities once lost to crime.