Traditionally, commercial real estate was exactly that: real estate space sold or leased to commercial enterprises. While there are still plenty of real estate developments that are exclusively for commercial use, there is an increasing number of developments that combine commercial and residential developments into one space. These are called mixed-use developments (MXD). MXD is a must-know commercial real estate term due to its growing importance (and potential profitability) within the real estate industry. The National Real Estate Investor website called MXD “the newest gem in U.S. development.”
Why Mixed Use Developments Are More Popular Than Ever
People don’t live or work like they used to.
Sprawling suburbs are largely the result of the post-WWII housing boom. Families moved into the quiet suburbs and drove into the cities to work and shop. Today, though, more people are working from home. They don’t want to be in the quiet suburbs, but closer to amenities for both themselves and their family. Mixed-use developments allow them to live in the same area where they shop and work.
People Want to Reduce their Carbon Footprint
Suburbs force people into their cars. They have to drive to the store, drive to their office, and drive their kids to school. Part of the appeal of MXD is the fact that they improve an areas walkability score. When residents can walk to a majority of their amenities and services, it reduces the number of natural resources they need to use for transportation.
People want to feel like they are part of a community.
In an increasingly digital world, people are eager to feel connected to the place where they live. Mixed-use developments can help increase the sense of community residents feel. They are living, working, and shopping among the same group of people. This makes it easier to get to know neighbors and connect with others.
Could Mixed Use Developments Be the Right Move for Your Commercial Property?
Understanding this key commercial real estate concept is just the beginning. Due to the complicated nature of combining commercial and residential properties, it’s best to work with an experienced team to help you find the right solutions. Get in touch with Lee & Associates Orange today. We’ll help you make the right choices for your commercial property.
by Staff Writer, Lee & Associates Orange