The attraction of mixed-use developments that blend commercial office space with retail and residential living is not just about convenience. Paul Upton, who heads new developments for Dogon Group Properties, says they also create exciting investment opportunities with the option of attractive rental returns.
“This is because most are situated in central urban spaces, so the demand from potential tenants is high. “As the world population continues to rise, suitable land for development is becoming scarce.
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“In order for mixed-use developments to be a success, getting the right mix of retail, office and accommodation is crucial, he says.
If each unit does not complement the other, developers can potentially struggle to fill the new space. “For example, if there are retail units in the form of shops, cafes and bars, the right combination of accommodation and office space will impact these businesses’ efforts to receive footfall and patronage.
Developers also have to consider the needs of each business and ensure that these needs aren’t to the detriment of others within the development, such as noise disturbance from a restaurant that could potentially affect apartments above it, and so forth.”