Buying a mixed-use property is nothing to be wary of, as long as you do a little research prior.
Put simply, a mixed-use property is a commercial building housing more than one property type within the complex – such as a block of ground-floor retail shops with residential units above.
You may also find GP clinics, childcare facilities, or a hotel in many mixed-use properties.
As last year’s winner of the Master Builder’s Association’s Medium Builder of the Year honours – and as a mixed-use property development specialist – Zircon Living knows a thing or two about the mixed-used property sector.
So, we have compiled a few handy tips to those considering breaking into the mixed-use property market.
The first rule of property is location, location, location!
While location should be the deciding factor in any property purchase or development, it is crucial when it comes to your mixed-use property investment.
Factors such as existing foot traffic, easy access to parking and the needs of the surrounding community all come in to play here – as they can make or break a business for tenants.
Take a look at the uses included/permitted with the property and do your due-diligence from there.
The lease covenant is key
The quality of the tenant and lease covenant will directly impact the ongoing value of your potential mixed-use property, so it pays to understand what is in place.
And in today’s economy, with the ongoing challenges thrown up by the COVID-19 pandemic, this has never been more relevant.
With many businesses heavily impacted, the most appealing mixed-use property asset should have long-term leases for tenants operating businesses that will continue to perform and operate under COVID-19 conditions and restrictions.
Know the fundamentals
Every property can be a good deal if you’ve carefully chosen a smart location, ensured it comes with a winning covenant and you’ve done your local community research.
Keep researching the market until you are confident that you have a very sound understanding of the central core of what will provide good value.
Look at the asking price and ask yourself where you see the value in comparison.
A commercial mix weighted heavily with residential is often a sound choice, since residential property rarely sits vacant, unlike commercial premises, which can sometimes sit vacant for months before being re-tenanted.
Want to know more?
Zircon Living is proudly recognised as one of Perth’s highest quality builders and is committed to consistently delivering exceptional builds that exceed client expectations.
So, if you’re looking at moving into the mixed-use property sector via development, please let our highly experienced team of local experts in Perth work their unique magic for you.
Call us today, you won’t be disappointed!