Commercial properties throughout NYC are undergoing a shift. Dedicated, single-purpose properties have done well for a very long time, but there is a rising demand for structures that serve multiple functions, and there is a clever strategy behind the move. Williamsburg is a prime example that should be studied by commercial real estate investors.
Manufacturing Comes to Williamsburg
At least three investors are implementing spaces for light manufacturing in office buildings in Williamburg. This may seem novel, or even odd, until one looks at the rise of coworking spaces in apartment buildings, or combination retail and office properties. Mixed use is nothing new, and this latest development offers a number of benefits to both tenants and commercial real estate owners in Williamsburg.
The Strategy Behind Hybrid Properties
To more traditional commercial real estate investors, some hybrid properties in Williamsburg may seem like madness, but there is a method behind it all. Think of it as a new version of a mixed-use property, such as a restaurant with a second story apartment. Hybrid buildings offer two or more types of spaces for tenants, but not all on one big open floor plan. In the case of Williamsburg, there are office buildings with dedicated floors for executives and other floors for light manufacturing. When the property is at peak performance, all floors will be occupied. If the market shifts, office or manufacturing may cycle out, but only in dire circumstances will the property be completely vacant. Additionally, if the demand is great for office space over manufacturing or vice versa, the other floors can be easily converted to meet the needs of new tenants. However, by offering only one or the other, the property owner is potentially missing out on opportunities. The strategy requires some imagination, and not all combinations will work. Research needs to be done to see what’s available in a given neighborhood, and what voids need to be filled.
Financing for Hybrid Properties in NYC
Commercial real estate investors need to be agile to keep up with market shifts, and hybrid properties appear to be a mainstay in NYC. Express Commercial Financing provides capital solutions for investors looking to acquire or convert existing properties to offer multiple types of workspaces for tenants. Contact our offices today and learn more about the funding options we have available for hybrid properties in and around Williamsburg.