Should you buy a commercial space in a mixed use building?

Are you thinking of buying commercial property on the Gold Coast? It can be an expensive venture if you're running a young business and don't have a huge amount of capital to invest – you'll have to borrow at an interest rate that could sting you down the track.

That's why buying a commercial space in a mixed use property is such a good idea. Rather than owning a whole floor of a building or a small standalone building you use as a store or office, you'll only buy what you need. If you're just after a working environment for five or six employees to work together, you won't need a lot of floor space.

Mixed use space has pros and cons like any property type – why could it work for you?

Pros

Mixed use space is zoned for more than one purpose. Finder states that the most common combination of this is mixed commercial and residential space in the city, where there might be a block of apartments and offices together. Another possible combination is commercial and industrial buildings.

These mixed spaces are often smaller than regular offices because they're split to maximise value for the developer. If you don't need a lot of room to work, a mixed use space could be a more appropriate size and thus more cost-effective.

Mixed use spaces also tend to have landlords looking after the building as a whole, so there's potentially someone available to sort out any issues that arise.

Cons

There are some drawbacks to buying a mixed use commercial space, but these can be negated by smart buying. The first negative is getting a loan for a mixed use property is more difficult because lenders see it as riskier. Mixed use properties tend to be less attractive to the wider market so are harder to sell when it comes time to move on.

It's also more difficult to buy a mixed use commercial space if your business is not established. Start-ups might have great business plans, but without a proven record, lenders and developers might not look favourably upon your purchase application.

As a partially commercial and partially residential space, it's likely that you'll have increased foot traffic in the area. This leads to an increased risk of stolen property or people being injured on the premises, so insurance costs go up. On top of an expensive investment in the property itself, it can turn into a huge financial outlay that you might not be ready for.

Mixed use commercial space can be a great option for many businesses looking to expand or take the next step up the corporate ladder, but it's not for everyone. For help finding the most suitable commercial space for your business venture, get in touch with Ray White Commercial Gold Coast today.