Mixed-Use Developments: What Are the Advantages and Drawbacks

13 July 2022

Today, new developments in the urban areas have become massive and more in demand. One new development in the real estate sector is the mixed-used buildings which offer a diverse mix of commercial, residential, and retail space in one prime location. Real estate brokers have highlighted the greater advantage of renting and living in mixed-use development in urban areas. In this article, we have listed some of the advantages as well as the drawbacks of mixed-used developments.

ADVANTAGES

Good Return on Investment

Mixed-use development is a combination of living space and entertainment spaces in one commercial building which is often built and constructed in urban areas. With the continuing urban transformation, investing in the mixed-use development is the most viable strategy to grow your money if you intend to put up a new commercial establishment.

Offers Safer Walkable Places

Investing and establishing your business and living space in mixed-use development ensures safer and walkable places. All mixed-use lifestyle centres offer a safe environment and most especially, provide a walkable place for their tenants and the people living in cities to freely move around without worrying about their safety.

Increases Revenues

One of the most notable advantages of mixed-use development is its ability to stream income from retail, commercial, and residential establishments. These income streams increase the revenues and make a return on capital happen in a short period for every business establishment owner leasing in the development. Hence, investing in mixed-use development means higher revenues for your business.

Promotes Pedestrian Friendly Community

Another advantage of mixed-use developments is they also promote sustainability and even safety. Promoting these vital factors provides convenience for every tenant in accessing amenities more easily and most quickly. Proximity to essential activities by providing a pedestrian-friendly community provides not just safety but also convenience, which has drawn a lot of people to live in urban areas and invest in mixed-use developments.

Offers Affordable Housing Opportunities

Mixed-use development offers affordable housing opportunities for people who are dreaming to live in urban areas. Mixed-use developments help subsidise affordable housing to counter the high urban housing prices and create home space opportunities for everyone wishing to live in the city and other highly urbanized areas.

DRAWBACKS

Difficulty of Management

One drawback of mixed-used developments is they are difficult to manage especially for enormous developments, the responsibilities are greater. For this reason, it can be difficult for property managers to manage the tasks at hand. Before commencing with your lease, it is just wise to observe if the property managers are prompt in handling property issues and excels in dealing with both office management and retail space management.

Shared Parking

Bigger mixed-used developments feature numerous office spaces, retail spaces, apartments, restaurants, and others. This means you will have to share the parking space with the other owners and tenants which can be such a hassle for everyone. However, this is just a minor drawback compared to the benefits that a mixed-use provides and offers for its tenants.

Learn more about how our experts at Altitude Co can help you with your plan to invest in mixed-use development. Commercial property building is our core business, but we also excel in the smaller domestic market. We are an expert master builder in Melbourne, and we specialise in commercial property building. We have a highly qualified team that has the drive to uphold the reputation of the business. Call us today and we will be happy to assist you.