Multi-Use/Family Commercial Property - What to Consider

 

Multi-use/family property can be a nice addition to your portfolio to diversify your risk with vacancy.  Residential apartments can keep the cash flow coming in while you wait on a commercial tenant.  This sometimes can be a year or two.  In our local market you will find real estate that was originally built for single family or multi-family purposes but over time has been converted for commercial office and local retail type uses on the first floor.  On the second floor there are apartments or extensions of offices. 

When considering these properties, ask yourself these 4 questions.

 

  1. Zoning- What type of uses are allowed for the particular area?  This could be a big factor in keeping it rented.
  2. Flexibility of Use-Does the layout of the inside of the property allow for many different uses(office, retail, residential living) or is it going to cost a lot of money to convert the space for multiple uses?
  3. Parking-Is there enough parking to accommodate both a residential use on upper floors and retail or office parking on the first floor?
  4. Curb Appeal-Does the exterior of the building allow for a professional/business look for a business and can that same look work for residential living?

Troy Gerspacher, CCIM,  President, Gerspacher Real Estate
My Listings | Ph (330) 722.5002 | Email Troy

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