Benefits of Investing in A Multi-Use Property

Benefits of Investing in A Multi-Use Property
By JMK Property Management - Tuesday, November 24, 2020
JMK Property Investment understands what you likely already know. Finding the right company to walk you through your investment is three-fourths of the investment challenge.  You are in luck. JMK Property Investment has lived and worked in the Miami area for decades. We have our finger on the pulse of this community, and we know how to help you maximize the investment you are seeking.   Not only can we help you find the perfect multi-use property location, but then we can help you invest in and develop it. We can help you manage it, too. We’ve been building relationships for years, and we know that efficient and reliable partners are essential and invaluable.  We provide a FREE consultation so that we can understand your goals from the very beginning. We believe this is a relationship, and we want to be sure you know, from the very beginning, that communicating effectively with you is a priority.  

The Basics

Multi-use or mixed-use properties are a combination of commercial and residential buildings that work well together. Multi-use properties can consist of several adjacent buildings or just one building. Typically, multi-use properties consist of residential space and commercial properties that support the residents: a theater, a grocery store, dry cleaners, restaurants, retail stores, even greenspace.  When you invest in a multi-use property, you are not just purchasing a building. You are investing in a neighborhood experience. 

Closeness

The neighborhood quality provided by multi-use properties is attractive to both investors and renters. Seniors, many of whom are downsizing into retirement, are highly attracted to residential properties that are within walking distance of conveniences like grocery stores, pharmacies, and doctor’s offices.  The value of fostering a symbiotic relationship of residents with the right choice of commercial properties cannot be overstated. Ideally, you would have office workers from the commercial properties enjoy lunch at a restaurant. Shoppers can grab their prescriptions, duck into the grocery store, let the kids play at the playground, and then walk around the corner to their homes. Research shows that there is a connection between walkable areas and economic viability.  JMK Property Investment

Environmentally Conscious 

Seniors aren’t the only population who appreciate multi-use properties. Millennials like and support these types of developments because of their environmental sustainability. Often, multi-use properties repurpose older buildings or refurbish trendy spaces like warehouses or old factories, promoting sustainability. Making it easier to park a car and walk to most conveniences is also an environmental boost.  It is not uncommon for multi-use properties to have limited parking spaces and more green space, promoting an environmentally-aware community in general. 

High Appreciation Rate

With our help, we anticipate that you will achieve a perfect blend of luxury and affordability. Amenities in terms of open spaces, greenspace, community offerings, walkability, and well-designed residential properties should be marketed as luxuries and are dynamite when paired with affordability. With our meticulous eye for detail, we will help you cultivate the commercial space to align with your residential space. By doing this, we increase your property’s attractiveness as well as its profitability. Well-planned multi-use properties hold and increase their value over time. This is true for most real estate investments, but especially true for multi-use. 

Less Investment Risk 

Indeed, there is always a risk in any investment; however, investment in a multi-use property has a lower risk than other investments. Because there is a mix of commercial and residential properties, the risk of low occupancy is minimal.  A primary benefit of multi-use properties is that commercial properties garner more rent, approximately 6% - 12% of the property’s purchase price, and residential leases usually range from 1%- 4% of the purchase price. 

Boost Your Portfolio 

If real estate investment is something you are serious about, you can enhance your portfolio quickly with a multi-use property. It is much easier to purchase one building with multiple units than buying many different types of properties in numerous transactions. 

Advantages of Commercial Tenants 

Commercial tenants have a vested interest in maintaining their property. They want to attract customers, so typically, they maintain their property well.  Commercial leases provide more flexibility to owners. Commercial leases rarely have the restrictions that residential leases often do, which makes them less challenging.  Repair and maintenance are limited to business hours with a commercial tenant. While residential tenants can call with emergencies or repair requests 24 hours a day, unless there is a genuine emergency, maintenance on commercial properties typically remains 9am-5pm.  We live in an Amazon economy. However, if you strategize about the ratio of commercial leases you have, you shouldn’t need to worry about vacancy issues. Consumers will always want to purchase a cup of coffee they didn’t have to brew themselves. Folks will always get their hair cut and get their teeth cleaned in person. If you think strategically about the kind of neighborhood you are creating, there is every reason to expect success. 

Strategize for Success 

Maximize your multi-use property by strategizing beforehand. Think through commercial renters that will complement each other and attract the type of residential renter and even shopper you want to attract to your property.  For example, if you want to attract high-end residents, then plan for upscale commercial properties like upscale restaurants, hair salons, and a dry cleaner. Don’t forget amenities that go hand-in-hand with the type of resident you’re hoping to draw.  Playgrounds, health clubs or yoga centers, and community spaces are essential.  After a while, plan some community events at your property: movie nights, family nights, fundraisers, even community seminars. Not only is fostering community essential but in the long term, it also encourages loyalty and can garner positive publicity, too.

Confidence and Trust 

JMK Property Investment will invest, build, and manage your multi-use development. We can be as involved as you need us to be. We leverage our experience, technology, and processes to protect your assets, maximize your return on investment, and achieve your goals.   Contact us today to schedule a FREE consultation. Let’s get started making your dreams come true! 

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