This Is How Multifamily Real Estate Can Help The Retail Sector

By: Taro Chellaram /Real Estate Articles/Jan 31, 2023

This Is How Multifamily Real Estate Can Help The Retail Sector

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.



Wealth management tips. How to create wealth?

We have listed the best ways through which you can make money in a low risk manner. Create wealth using these investment options. It is the easiest way to get rich.

Falling Home Prices? Here's All You Need To Know!

Here’s how you can take advantage of rising interest rates. Advantages of investing during high interest rates are listed below. Invest in real estate today.

Legal Victories Unleash Potential to Cut Property Taxes - Impact on Hospitality and more

Landmark Court Decisions Pave the Way for Lower Property Taxes and Intangible Asset Considerations

Revolutionizing Student Housing: Advancements in Development and Design

Capital Market Challenges and Design Evolution in Student Housing Development: Navigating Financing Hurdles, Innovative Trends, and Future Prospects in 2024

Late 2022, Early 2023 Market Trends

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.

Extending a Warm Welcome to Savings for All Property OWNER

Texas\' Landmark Property Tax Reform: Securing Affordable and Sustainable Homeownership for Texans, Envisioning Average Yearly Savings of $1,300.

Celebrating Juneteenth: A Step Toward Freedom and Equality

At Tc Global Commercial, we believe in the power of home and community. As we celebrate Juneteenth, we want to take a moment to reflect on its significance and why it holds a special place in our hearts and our history.

Not All Industrial Real Estate Is The Same

Industrial real estate includes manufacturing, logistics, and flex or R&D buildings. Find out which of these real estate investments is the most profitable for you.

What You Need To Know About Closing

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.

Rise In Population Is Causing This Real Estate Phenomenon To Take Place In Cypress, Texas!

Population rise causes a rise in need for medical institutes, hospitals and other commercial real estate in Cypress, Texas.


Instagram

@ tcgcrealestate

Subscribe Now! IT's Free

Stay up to date with all news coming straight in your mailbox.

Copyright © 2024 TC Global Commercial. All rights reserved.