As space for new buildings becomes scarce in urban areas and beyond, real estate developers across the country have been returning to the once-popular methods of building space-saving constructions, including mixed-use buildings, commonly known as MXD’s. Though many may not have heard of mixed-use development before, they were once the norm throughout cities in the United States. They have a staggering number of advantages that promise to revitalize many communities in modern times. The history of these buildings is one with many twists and turns, but they have remained a reliable option for developers everywhere.
What is a Mixed-Use Building?
In short, a mixed-use building is a single building that houses three or more significantly-sized, revenue-producing businesses or ventures. While this might include several businesses, it is not the same as an office building, which houses only business offices. An MXD includes more diversity in the uses, which may include:
- Business offices
- Retail stores
Industrial operations and residential areas may also be included in these dense, concentrated constructions, allowing many people to work, live, and enjoy a wide range of amenities within a relatively small area. All in all, it’s a practical way to make the most of limited space and has something to offer everyone.
Advantages and Benefits of Mixed-Use Properties for Your Business
MXD’s existed in large numbers before the implementation of modern zoning regulations, which effectively split commercial and residential areas from one another and made them exclusive spaces for specific uses. In these early years, they thrived in transit stop areas and around intersections, where businesses vie for space with urban housing. Over the years, the popularity of these businesses rose and fell, dwindling throughout the 1950s only to peak in the 1970s and then fall again. Since the mid-2000s, development companies have been revisiting the concept of MXDs, and for a good reason.
The first benefit of mixed-use buildings is, of course, its ability to make the most of relatively small, limited spaces of land. This is becoming especially crucial in modern times when well over 55 percent of the world’s population lives within urban spaces. In order to accommodate this staggering number of people, room must be made for housing. However, this leads to difficulties in deciding where businesses can be placed, leading to a sort of standoff between residential and commercial zoning permits. MXD’s make the issue much simpler by giving developers the freedom to integrate both spaces into one. This also leads to interesting investment opportunities for business owners like yourself. You can grow your business and practice investment in multifamily housing in a single area.
MXD’s make urban living more sustainable in other ways, as well. When restaurants, entertainment, industrial ventures, and even housing are all encompassed in one compact area, residents of the area are required to use their cars less to reach amenities. This creates a safer, more pedestrian-friendly environment, which reduces the amount of pollution produced within the area. It’s a small step towards creating more green urban spaces but promises to make a huge difference as MXD’s become popular once more.
Benefitting the local economy and the climate as a whole is excellent, but MXD’s also have much to offer business owners in terms of the bottom line. First, being in a dense area with excellent pedestrian access and walkability means exposure to more customers. Customers passing by a business are more likely to stop and check out products in window displays than those quickly passing by in cars or busses. This often means more sales for businesses of all types, which, of course, leads to more profit.
Walkability, higher sales, and a fairly compact community often lead to the revitalization of communities and city areas that might have been otherwise struggling in recent years. In turn, this raises the property value for buildings within the recovering community, leading to a great deal of tax revenue. This revenue can then be put into further improving the development of the building, allowing even more access to housing and business space. Furthermore, this rise in value presents an excellent opportunity for investors, particularly those interested in managing multi-family homes.
From exposing your business to more potential customers than ever before to improving the community you’re based in and even the local environment, the benefits of using a mixed-use building for your business are almost endless.
The financial, efficiency, and exposure benefits of choosing to base your business in a mixed-use building are simply undeniable. However, choosing where to plant your business venture is a crucial decision, and having all the details is absolutely necessary for finding the right solution. Contact a team of professional developers who have plenty of experience working with MXD’s to learn more about why moving your business to one of these compact, diverse settings is the right move for your business.
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