Mixed-use development is an increasingly popular type of real estate. The ability to combine commercial, residential, cultural, and even industrial facilities into a single building can save on space, reduce urban sprawl, and provide unique opportunities for residents. However, not every business will benefit from being part of mixed-use development. Before they transfer their company to a mixed-use building, companies need to consider these factors carefully.
Will the Location Appeal to Desired Customers?
The first thing any business should do is think about their desired customers and consider how the neighborhood would work for them. For example, if a company depends on foot traffic, working far away from the town center might be a bad idea. However, for other businesses, mixed-use buildings enhance the customer draw. For example, a dry cleaner can do well in a development with residential space.
Is the Business Compatible With Existing Tenants
Make sure that the company works well with the existing tenants. A busy bar may not do well in a residential mixed-use building with rules about noise levels, or a spa may struggle to create a peaceful environment if the mixed-use building contains industrial space. It may be a good idea to do a little research beforehand, talking to the other residents in the building to see if they would appreciate a new business moving in.
Who Manages the Property?
One potential downside to mixed-use buildings is that one’s business typically will not own the building as a whole. Instead, they will need to rely on the building’s owners and property managers for maintenance and upgrades. Therefore, it is essential to thoroughly research the building’s property management to make sure they do a great job meeting each company’s needs. Ensure they have clear guidelines in place for handling repairs, landscaping, and other essential tasks.
Does the Building Match the Company’s Brand Image?
Every company needs to think carefully about their brand image and identify ways their location may contribute to or harm that image. Mixed-use buildings are often seen as modern, youthful, environmentally friendly, and community-focused. For many companies, these sorts of conceptions can help improve their brand image.