A neighborhood bar and tavern can be a welcome part of the community for everyone to relax, chat, and enjoy a relaxing beverage. If you’re a property owner looking to get in on the ground floor of a local watering hole, you may want to look into a mixed-use property to make your dream a reality. A mixed-use property is a type of real estate property that combines commercial, residential, and sometimes even industrial units. This allows investors to take advantage of different types of property in a single investment.
Less Risk for Owners
With a growing demand for mixed-use property, real estate experts are finding this to be a less risky investment, as tenants are diversifying across multiple properties. If you are looking to rent out a unit within one of these buildings, you want to still be certain that your interest as a tavern owner is protected with mixed-use insurance. Most mixed-use buildings need liability coverage to protect a business owner in the event of someone getting injured on your grounds. Liability insurance covers a certain amount of these expenses brought on by any resulting lawsuits.
Bars and taverns take in a large number of customers every day, and these sheer quantities of people can compound the risk of injury. A residential building faces different damage risks. Residential buildings can be damaged by everything from weather events, fire, vandalism, theft, and more. If something like this happens, you’ll need coverage to pay for the cost of repairs, as well as business income (BI) insurance to cover any lost income while damaged apartments can’t take tenants. The right insurance policy may also be impacted by the landlord’s policy to determine your tavern’s needs.
Mixed-use real estate has become a popular option in major cities because of its easy accessibility by way of walking distance or mass transit. This is more convenient to tavern customers, who don’t have to worry about their means of getting home outside the use of a vehicle. Residential units and commercial property combine in these areas and are quite common in a major city, affording more space for less cash, which may also impact how much you wind up paying for your property taxes based on the layout of the city and surrounding area.
The goal of a tavern is to make customers feel like they can stay for a period of time and truly feel comfortable. Whether they’re sipping on an American light lager or an IPA with a hoppier taste and mouthfeel, a customer wants to enjoy any beer style safely. Having the proper certificate to pour a variety of flavors while making sure you are up to code across the square feet of your mixed-use unit makes a customer more apt to stay for another round or bring friends into the tavern.
Sustainable Real Estate
Mixed-use developments have the benefit of built-in clientele for commercial spaces, which can provide multiple streams of income. This allows a tavern the benefit of a high-traffic environment and a more sustainable way to operate. Developments are compacted within a denser surrounding area, and natural resources can be conserved. The improved walkability also reduces pollution since residents aren’t relying on cars as much to get to and from the bar.
A landlord will make you aware of the diverse tenant market and any possibilities for additional tax credits thanks to greener technologies within the building. Getting in on the ground floor doesn’t have to be a ground-up process thanks to mixed-use properties. The right unit is available for a renter to get in on the best possible profits in the area, affording more time to focus on drink and dining sales to improve the future of that dream tavern.