On a global scale, the desirability and demand for mixed-use apartments seem to be growing significantly. You might have noticed new Apartment buildings in your area built on top of restaurants, grocery stores, or other retailers.

The popularity of mixed-use apartments might be rising, but this trend is not a new model. In fact, until the 20th century, most developments in the United States were concentrated in urban areas where mixed-use developments enabled Americans to work and live in walkable neighborhoods.

In this article, we’ll take a look at what mixed-use buildings are, why the demand for mixed-use properties continues to increase, and how to find the best mixed-use apartment.

Mixed-use apartments explained

Mixed-use apartments are types of real estate properties that combine residential, commercial, and industrial units. Mixed-use developments often contain complementary properties, such as a hotel with a gym and retail stores or an apartment complex within walking distance from local businesses and restaurants.

These developments are more convenient to renters since they can reduce or eliminate the need to own an automobile. And from an investment viewpoint, a mixed-use property generates higher returns and better long-term performance. The demand and development of mixed-use apartments will maintain its growth trajectory moving forward for the following reasons: 

• Consumer behavior has shifted to more inclusive work and play opportunities.
• The workplace has witnessed fundamental changes.
• Growing demand for apartments exists.
• Owning a house is no longer the American dream.
• More effective land use has created cities within cities.
• Convenience, walkability, and a live-work-play mentality remain high among consumers.
• Mixed-use properties often perform better in economic downturns than single-use properties.

Types of mixed-use developments

Mixed-use properties can come in a variety of shapes, sizes, and scales and generally fall into one of five categories:

Main Street

The Main Street model has outlived the urban decline to return and revitalize urban communities in cities and towns across the United States. However, most retail shops have been mainly replaced with hospitality, services, and entertainment venues in the modern version, while still including dwelling units behind or above the storefronts.

Shopping mall and department store conversion

With the upsurge of e-commerce, and giant online retailers, many conventional retail businesses had to close shop as they could no longer compete with the convenience afforded by e-commerce sites. However, vacated department stores and shopping malls have quickly found a new purpose by mixed-use real estate developers.

Horizontal mixed-use developments

These developments consist of single-use buildings providing complementary functions like residential, rental, and business, all within a manageable walking distance.

Vertical mixed-use developments

Vertical developments combine a diversity of uses in the same apartment complex, with lower floors catering for more public services, while the upper floors provide for more private functions.

Walkable mixed-use developments

These developments combine vertical and horizontal designs, surrounded by core activities within walking distance of the properties.

Benefits of mixed-use properties

Mixed-use properties offer several distinct advantages.

Great property management 

Mixed-use apartments have better property management as a result of the size and requirements of the community. With a combination of retail, commercial, and residential renters, an experienced property management team often manages the diversity efficiently. Consequently, the property managers are very professional and on top of everybody’s needs.

Convenience

Mixed-use apartments provide the best convenience for modern living. With access to service providers and retailers, renters do not need their vehicles. If the apartment complex is close to a car-sharing service, bus stop, or train station, they might be able to forgo car ownership altogether.

Environmental effects 

With mixed-use properties promoting walkability, they reduce the risk of and need for cars to commute to the store, work, and entertainment. Thus, mixed-use developments promote positive environmental effects by decreasing the carbon footprints in cities. Fewer vehicles mean less parking space needs, which results in more community shared spaces and green areas for people to enjoy in cities.

Stimulates economic development

Economic benefits from mixed-use neighborhoods are twofold, benefiting both businesses and renters. Living in a mixed-use building translates to monthly savings on gas and other transportation costs for renters when they rely less on their vehicles and go for alternative means of transportation, like public transportation or walking.

Spurs revitalization

Mixed-use communities are often the key to reviving otherwise underdeveloped areas. Corporations headquartered in these areas provide jobs to boost local economic growth as employees and their families become customers for local restaurants, movie theaters, retail stores, and groceries.

Social connectivity 

By reducing the need for car travel, mixed-use properties also bring shared community space. Sidewalks, parks, and plazas promote collaboration among community members. These public spaces are incorporated into mixed-use developments to encourage people to get outside and socialize. 

Increases affordable housing opportunities

Renters in mixed-use apartments enjoy more affordable housing than their suburban counterparts. This cost adjustment is because the rental units available are usually smaller than in the suburbs.

What to look for in mixed-use apartments

Now that you understand how advantageous mixed-use apartments are, learn what to look for in a mixed-use apartment:

• Ensure you’re looking in the right place. Big cities have a higher concentration of mixed-use apartments, and you may have more options based on where you’re renting. 
• Next, think about what rental style you prefer. Do you like the feel of a contemporary mixed-use neighborhood or opt to dwell in a mixed-use apartment?
• If you like quiet nights, an apartment above someplace with a nightlife scene may not be ideal for you.
• If you want to drive as little as possible, a place near your work or a train station might be the perfect spot.
• Go for a building close to your child’s school, university, local parks, retail businesses, or whatever else you deem essential.

Become a part of a mixed-use development

With mixed-use apartments becoming a popular commodity in the United States, you might be considering a transition into this type of living. Whether you’re a restaurant owner, retail store owner, staying in town, or moving to a new city, you can benefit from renting space in a mixed-use property.

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