Starting in the 21st century a trend of constructing mixed-use buildings started a wave across the country, as builders and developers searched to find new ways to blend urban style living with walkable communities as millennials were looking for something different for homes than their parents. Mixed-use buildings are a combination of residential and non-residential buildings, ranging from a single building to an entire block. When done properly these small knit communities promote improvements in home prices, less traffic congestion, and promote public transportation over car ownership.
- 68% of homebuyers in 2016 were millennials, and one of the primary traits that the majority of millennial renters and buyers is seeking is the desire to get to routine places without the need for a vehicle. Millennials prefer walking over driving and place a considerable price on living within walking distance of shops, restaurants, and work. If they can feel they are helping the environment by just where they live it gives them an intrinsic sense of making a positive difference in the world. Commercial Buildings like this are typically placed in density-packed areas located close to schools, libraries, and parks. These structures provide a hub with easy access to what most will be needed in their daily life.
- What about investors? Regardless of commercial or residential changes in the market, mixed-use buildings are seen as a low risk investment in the real estate world. Because they offer both residential and commercial spaces, investors can diversify the from the investment portfolio in only one building.. Other than this commonly known positive trait, mixed-use buildings also offer higher income, cash flow, longer leases, and less competition.
- As cities grow and traffic builds, it’s no surprise that Americans are beginning to favor walking over driving as their preferred mode of transportation. As many as 49% of Americans over the age of 21 would prefer to live in communities within walking distance of amenities. With proximity being such an important trait, the trend of mixed-use buildings is on the rise.
- Tenants in mixed-use buildings are often some of the greatest beneficiaries of commercial businesses in the building, which provide an income stream for both developers and businesses. Take a look at City Place Doral in South Florida. The project features 250,000 square feet of retail space, including luxury living and more than 40 dining, shopping and entertainment destinations for all palettes and walks of life.
- Help out the local community by helping small business with a structure of this nature. Developers and investors have a promising new clientele base when it comes to mixed-use buildings. Besides residential and commercial spaces for lease, mixed-use buildings have the potential to drive a lot of interest and foot traffic compared to their stand-alone store counterpart.
Care About the Environment
One last bonus, since commercial and residential tenants occupy one building, resources such as energy, trash disposal, and sewage can be used more efficiently. Municipalities save even up to 38% on infrastructure costs while serving compact developments opposed to large-lot subdivisions. Vertically mixed-use building can also reduce long-term maintenance costs over individual buildings, since services can be shared through residential and commercial spaces.
At Aloha Building Contractors, we believe constructing mixed-use facilities promotes jobs and growth in the Bay County are like Panama City, Mexico Beach, & more. If you’re interested in developing a mixed-use building, please click here or call us at 850-890-3835. During our conversation we can discuss feasibility, potential time frames, and if we are the commercial contractor that is best suited to your needs.