Multifamily Housing Can Revitalize Retail Centers
Real estate investment can seem like an impossible venture for both new and experienced investors. There are many options to choose from, each with its own benefits. A few promising investment ventures in real estate include housing, land, retail, industrial and multifamily. In today's fast-paced day and age, utilization of resources to their total capacity is a high priority, which is why we're seeing more mixed-use properties emerging.
A great way of treading into this space is via multifamily housing. Multifamily and retail go hand in hand, with one benefiting the other. We can see many neighborhoods adding retail spaces in or close to their vicinity, but an opposite situation can also be profitable. Retail centers can benefit tremendously if they include multifamily buildings in their centers. Not only is it an ideal use of the extended space, but it also adds to their clientele and improves foot traffic. Online shopping and e-commerce websites are slowly killing in-person retail but having a multifamily so close to a retail center allows residents easy access, which may lead them to increase their expenditure towards these stores rather than at e-commerce websites.
The 'work-from-home' phenomenon changed the way real estate works. The demand for rental communities that offer combined spaces for living, working, and entertainment is on the rise. People are looking for a property that allows them to work from home, meaning it needs to include or be within a distance from a retail office space. Walkability is a major deciding factor for millennials. Investors should look at units that blur the lines between work, play, and living. These are known as 'Live-Work-Play' units. Such mixed-use projects are on the rise and would be a great investment option for those looking to invest in real estate in this current market. Properties previously accessible only by car or public transport are now accessible by simply walking! This creates demand and boosts retail sales. These real estate projects can range from a single building to an entire neighborhood, so invest according to your advisor's and your discretion.
Such real estate projects have other benefits too. Usually, retail centers are either located close to highways to have easy access to get to them. Furthermore, they offer economic benefits which help residential builders save on funds that would have been used to bring in utilities. Often, these additional expenses are associated with building residential properties in greenfield spaces (new construction projects.) We've spoken about why such projects attract residents, but what makes them stand out for investors to invest in them? In these times of rising interest rates and falling consumer spending, getting an influx of people near a retail center would help increase cash flow via diversification. Furthermore, such projects are better for the environment and help reduce the builder's carbon footprint, especially if the project is built by repurposing an existing structure rather than building a new structure off the ground.
Building a residential wing inside a retail center may need additional permissions and negotiations from the local authorities. Investor discretion is advised. Please consult with a professional before investing in any type of real estate. This article has been adapted from the "Winter 2023" edition of Urban Land Magazine, written by Patrick J. Kiger.
Extending a Warm Welcome to Savings for All Property OWNER
Real Estate Articles / Oct 27, 2023
Texas\' Landmark Property Tax Reform: Securing Affordable and Sustainable Homeownership for Texans, Envisioning Average Yearly Savings of $1,300.
Navigating the Future of Real Estate: Trends in Houston and Beyond
Real Estate Articles / Apr 01, 2024
Exploring Real Estate Trends in Houston: Embracing Online Innovations and Smart Home Features
Reviving Campus Spaces: Adaptive Reuse Solutions for Modern Education
Real Estate Articles / Jan 26, 2024
Transformative Real Estate: Navigating the Evolution of College Campuses through Adaptive Reuse and Strategic Solutions
Late 2022, Early 2023 Market Trends
Real Estate Articles / Dec 05, 2022
Real estate investors are keen to invest in real estate. End of year real estate trends and market predictions and trends that can be expected in commercial real estate for 2023.
The Rise of Newer Apartment Properties in the Multifamily Market
Real Estate Articles / Nov 01, 2024
Rising Multifamily Transactions: Newer Apartment Properties Attracting Investors with Modern Amenities and Stable Cash Flows
Rise In Population Is Causing This Real Estate Phenomenon To Take Place In Cypress, Texas!
Real Estate Articles / May 20, 2023
Population rise causes a rise in need for medical institutes, hospitals and other commercial real estate in Cypress, Texas.
Navigating the Changing Tides of Net Lease Investments
Real Estate Articles / Jul 01, 2024
Net lease property market adjusts to rising interest rates: Sales volume down, cap rates up. Financing challenges stymie development and acquisitions.
What You Need To Know About Closing
Real Estate Articles / May 11, 2022
Whether you are buying property or selling property, closing is a crucial part that will make or break your deal. We have listed major pointers that will help you deal with your next closing much better.
Purchasing Commercial Real Estate? Consider These 5 Things Before You Buy
Real Estate Articles / Feb 09, 2019
Whether you are a seasoned investor, or you\'re researching for your first property there is always a certain risk factor that makes us hesitate before signing the dotted line.
Everything you need to know about capital gains tax and real estate investment
Real Estate Articles / Apr 01, 2022
Capital gains tax is levied on the profits made when you sell property or sell investments owned by you. Here’s how you can be exempt from taxes along with the top tax tips for investors and property owners.
