An eruption of mixed-use developments has sprout up across Utah, as developers and investors are seeking new ways to get income streams from both residential and commercial tenants. However, attracting quality tenants to your mixed-use development project can be more difficult than you think.
This type of environment, which combines residential, commercial and retail space, offer advantages to each type of tenant, as well as to the investor. Residents enjoy the convenience of having dining, shopping, and recreational spaces right at home, and retail establishments can benefit from a built-in customer base.
This post is part of our blog series, “The Value Rooftop Amenities Bring to Architectural and Development Projects”. You might be interested in reading this series from the beginning!
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Rooftop amenities: the new value differentiator
For investors and developers, mixed-use projects can bring higher yields, generate synergies between complementary tenants, as well as attract potential purchasers and lessees from a wider variety of market sectors.
However, the success of your mixed-use development in attracting high value tenants is based on the value that can be offered to your target market, and that differentiates your property from others.
In this sense, rooftop amenities have become the new value differentiator for mixed-use developments, and the most effective way to attract high-quality tenants.
Aware of this, developers are competing to win tenants/investors into their buildings by offering gold-star rooftop amenity packages, where in addition to a thoroughly urban first floor mixing retail and art, residents can also have access to a rooftop solarium, landscape terrace, fitness center, and dog park.
These amenities are more than just shared outdoor spaces: they are spaces crafted to provide optimal experiences for occupiers. It’s the entire ‘live, work, play’ environment that people want.
Striking the right balance with your tenant mix
Mixed-use buildings are unique in that as an owner / developers you want to appeal to two very different types of tenants who both bring their own value: residential and commercial tenants.
But, the interests of residential and commercial tenants vary greatly. This is why the right balance must be struck between creating pleasurable rooftop amenities and situations for all tenants in order for the investment to be and remain successful.
Residential tenants, for instance, are attracted to mixed-use buildings mainly because of their functionality and shared space. The biggest appeal to them is the ability to shop, eat and mingle where you live.
On the other hand, commercial tenants’ primary concern will be that their business operations run smoothly without restrictions placed on when and how they can use their unit.
Partner for success
Developers and architects working can increase their chances for success of a mixed-use development project by partnering with an experienced rooftop amenity design firm in the initial stages of the project, in order to decide which rooftop amenities are best suited for the projected demand from would-be tenants, without exceeding or underserving their needs.
Partnering with the right amenity design firm from the outset is crucial in order to ensure project profitability of your mixed-use development project.