Mixed-Use Properties: Investment Analysis Framework

Mixed-use properties offer diversification within a single asset but require nuanced underwriting that accounts for the distinct characteristics of each component.

Valuation Approach

Each component should be valued separately using appropriate cap rates and growth assumptions before combining into a blended value. Synergies and conflicts between uses should be considered.

Key Considerations

• Ground floor retail exposure and tenant quality
• Upper floor residential or office income stability
• Common area allocation and expense sharing
• Regulatory considerations for each use