Mixed use developments are increasingly becoming the most popular development type in the U.S as well as the hottest Commercial Real Estate Trend. Both developers and investors are looking for new opportunities and investments to purchase desirable land that can achieve the goal of creating developments that not only offer a residential area or office space, but instead a platform location that creates a destination which can draw visitors, tenants, residents and workers. The purpose is to engage, interact, live, shop, work and play all in the same place.
The U.S. construction sector boomed in 2017, reaching an all-time high of $1.26 trillion in construction spending. But why is there such an influx of growth all of a sudden? Well, there are a few reasons.
Mixed Use Developments solve a problem of effective land use in supply-constrained areas
For example, major metro areas and coastal region across the United States are lacking a large quantity of land and thus create a need for these mixed-use developments. Urban cities are all about walkability and therefore investors and cities are able to effectively utilize land and create a product that satisfies different purposes and uses. As a result, we create a community that is infused with new life able to instantly capacitate living and shopping all in one area.
Another viable reason for these mixed-use developments is consumer demands. Consumers nowadays are all about convenience. They want to be able to walk downstairs from home and go shopping for groceries. Another perspective of an office worker would be to have variety of lunch places outside their door step to save time. Immediate gratification is what these consumers crave. At the end of the day, time is money and mixed-use developments make it convenient for these consumers to save time and thus save them money as well in the long run.
Provide diversification for investor portfolio
Another benefit of mixed-use communities is to offer tenants and investors a diverse micro community through which they can form strong real estate partnerships. Creating a community that offers a place to work, shop, dine and sleep all in one area brings a sense of relief to investors, especially those who are looking into preferred equity. Investors and tenants are more likely to be apart of this type of community as it offers diverse characteristics of the greater commercial real estate market. All in all, these communities are the wave of the future and those who are positioned to be a part of these types of commercial real estate investments will reap benefits in the long run.
Interested in mix use development investments? Contact MarketSpace Capital today by giving us a call or sending an email to firstname.lastname@example.org