Mixed use buildings are an increasingly popular option for businesses looking to make the most of their space. And according to a 2019 study by ICSC, 78% of consumers were interested in living in a mixed use environment.
Combining residential and commercial elements, mixed use buildings offer unparalleled convenience and potential for creative solutions.
In this article, we’ll help you to understand what a mixed use building is and why it might be a lucrative option for you through these sections:
- What Is A Mixed Use Building?
- What Does A Mixed Use Building Look Like?
- Why Should I Implement A Mixed Use Building?
- Are Mixed Use Buildings Profitable?
- How Can I Get Started?
- Mix It Up With Mixed Use!
With that, let’s get learning!
What Is A Mixed Use Building?
A mixed use building is a commercial space that has been designed to include both residential and non-residential elements. This could include buildings like:
- Office buildings
- Retail stores
- Apartments and condominiums
- Hotels and motels
For those that focus on residential elements, they may include access to a non-residential element on a common floor, and for non-residential buildings or businesses, they may have a residence above the business.
In a mixed use building, each element is uniquely designed to complement the others – they allow business owners to better utilize their space without compromising style or function. With multiple elements in one place, you can maximize your business’ potential without taking up too much room.
What Does A Mixed Use Building Look Like?
Mixed use buildings come in all shapes and sizes, from large multi-level structures to smaller single-level units. The design of each unit is unique and tailored to the specific needs of the business owners.
In some cases, a building may include multiple levels with different uses on each floor, such as retail stores on the ground level and apartments or offices on the upper floors.
In other instances, there may be two separate buildings built next to one another that are connected by a shared lobby or courtyard area. This allows businesses to have more control over how their space is used while still having access to other services within the complex.
Why Should I Implement A Mixed Use Building?
Mixed use buildings are great for businesses that want to make the most of their space. By combining different elements in one place, you can increase your business’ potential and provide a more comprehensive service to customers. Here are some of the benefits mixed use buildings offer.
Increased Foot Traffic: Mixing residential and non-residential elements in one location will attract more people, both those living there and those visiting for business purposes.
Improved Convenience: Having multiple services within one building eliminates the need to travel between locations. With one quick elevator ride, you can get everything you need!
Cost Efficiency: With multiple elements in one place, it is often cheaper than renting multiple spaces or offering the incentive of memberships at other locations.
Flexibility: By having different elements available, you can adjust the space to fit your needs and preferences and those of your tenants and customers
Brand Recognition: Having a building with multiple elements will help to establish a recognizable brand identity for your business or residential space.
Potential For Growth: Localizing many amenities in one place gives you the potential to grow your business as needed according to the needs and desires of your consumers.
Are Mixed Use Buildings Profitable?
Mixed use buildings can be incredibly profitable for businesses. By combining both residential and commercial elements, you can maximize the potential of your space while utilizing multiple services or tenants to generate revenue.
For example, if you own a restaurant in a mixed use building you may have access to an extra kitchen that could be used as an office space for additional businesses. This allows you to rent out the extra space while still maintaining access to it when needed – maximizing your profits without sacrificing convenience.
Additionally, having multiple types of tenants within one building can lead to increased foot traffic which is beneficial for business owners looking to increase their visibility.
If you’re still not sold, here are a few pieces of technology that mixed use buildings utilize to maximize their profits and keep things running smoothly.
Amenity Fee Structuring
Amenity fee structuring is a great way to maximize the potential of your mixed use building.
Essentially, you create and add different types of fees to each type of tenant to increase revenue while maintaining a balance between residential and non-residential tenants.
For example, if you have two apartments on the top floor and office space below them, you could charge an amenity fee for the use of common areas (like a parking garage, terrace, gym, etc.) that would be split evenly among all three tenants.
This allows you to generate additional profits without having to raise rent prices on any particular tenant – making it a win-win situation for everyone involved.
And implementing restricted access to your amenities doesn’t have to be a hassle either. There are plenty of access control systems on the market that make sure only paying tenants and customers have access to your amenities, making them truly exclusive and profitable.
In any mixed use building, security is of the utmost importance. With multiple tenants in one space, it’s important to make sure that everyone’s safety and privacy are maintained. This is where security systems come in.
By utilizing access control, visitor management, cameras, and other technology you can keep an eye on your building 24/7 – ensuring that all tenants, residents, and staff feel safe and secure.
Additionally, these systems can be integrated with access control devices which allow you to monitor who enters or exits your building at all times – making it easier for businesses to keep track of their customers or employees.
While security systems can be costly, they are worth their weight in protection against potential damage or theft to your customers and utilities. Plus, many tenants are willing to pay extra rent for an advanced security system.
How Can I Get Started?
While every mixed use journey is different, here is a basic guide to starting up your new and improved business practice.
- Determine What Kind Of Mixed Use Building Is Best For Your Business: Consider factors like the size of your space, its location, and potential tenants.
- Research Local Zoning Laws: Each city or town may have different rules and regulations for mixed use buildings so it’s important to understand what is allowed in your area before diving in.
- Create A Business Plan: A well-crafted business plan can help you to determine your goals and objectives as well as how you’ll finance the project and who will be involved in it.
- Hire A Professional Developer: Your architect or contractor can help you turn your dream into reality. They’ll be able to build a space that meets all of the necessary codes and regulations as well as helping you to create something visually appealing. If you already have a building, a professional developer will also help you decide whether you need a new space or if you can implement mixed use right where you are.
- Implement Safe And Profitable Practices: Amenity Fee Structuring and Security Systems like Access Control are key to making a mixed use building safe and profitable, so be sure to consult guides to find the best options for you.
- Market Your Business: Once you have created your mixed use building, it’s important to let everyone know about it! Create an effective marketing strategy that will help you draw in new customers and tenants alike.
- Manage Your Building: Take care of the space and tenants by implementing a management plan. This will help you ensure that everything runs smoothly and everyone is cared for.
- Bask In Your Success: You’ve made it! Enjoy your mixed use building as a tenant or overseer and make the most of what you’ve created. But don’t forget to always listen to your tenants and keep looking to improve – remember, mixed use is all about creating the best environment for people to live and work, and that’s constantly changing with new technology, trends, etc.
Mix It Up With Mixed Use!
Mixed use buildings are popular for a reason – they offer unparalleled convenience and potential for creative solutions. By combining residential and commercial elements, businesses can maximize their profits while providing tenants with an all-in-one space to call home.
And with the right technology in place, mixed use buildings can generate significant amounts of revenue while maintaining a balance between residential and non-residential tenants and keeping all of your customers safe and taken care of.
If you’re looking for a great way to make the most out of your space, then consider investing in a mixed use building or expanding your business to fit the mixed use future!
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Nick is a tech-savvy freelancer with a passion for coding and a knack for writing. As a programmer by trade, he knows the ins and outs of the digital world, with a particular interest in PropTech and Security Tech. When he’s not tinkering with the latest software, you can catch him scaling mountains or unleashing his creative side on a canvas.