A mixed-use building gives you diversification inside one asset, but each component has to be underwritten on its own terms.
Valuation Approach
Value each component separately, with its own cap rate and growth assumptions, before combining them into a blended value. Then look at where the uses help or hurt each other.
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