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.
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.
Tesla moves to Texas - Impact on real estate and economy
Real Estate Articles / Jan 27, 2022
2021 was a big year for real estate in many ways, but the biggest news of the year came towards the end of it when billionaire magnate, Elon Musk announced his move from California to Texas.
2023 Market Predictions in Commercial Real Estate
Real Estate Articles / Dec 28, 2022
2023 commercial real estate predictions are here. Find out which is the best investment opportunities are best for you. Make money with commercial real estate.
How is crypto and blockchain changing real estate business and money making?
Real Estate Articles / Oct 14, 2022
Cryptocurrency and blockchain technology is changing the real estate business in many ways. Real estate investing has started shifting to a digital and virtual space slowly.
Why Invest In Retail Properties?
Real Estate Articles / Mar 09, 2019
Are you considering investing in commercial real estate? Not exactly sure which type of property to start with? Fret no more!
Is Your Investment Property Maximizing It's Returns Potentials
Real Estate Articles / Feb 23, 2019
Are you leaving money on the table? When it comes to your investment property you need to be earning maximum returns. After all, you aren\'t in this to give away money, am I right?
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.
What REIT Means And How You Can Make Big Bucks With It!
Real Estate Articles / Feb 01, 2022
What if you were told that you could earn regular dividends from your investments without the hassles relating to buying, managing or even financing a property?
How you can profit from investing in Texas wetlands
Real Estate Articles / Dec 21, 2022
Wetlands are profitable investments if done right. Texas has multiple real estate investment options, including wetlands and you can get great returns on investment from them.
Where To Find Real Estate Investment Opportunities In The Current Market
Real Estate Articles / Mar 23, 2019
Commercial Real estate investors, looking to maximize profits have set their sights on Texas. The Lone Star State has made a name for its self as a strong market for Commercial Real Estate Investors.