I am planning to purchase a mixed use building zoned neighborhood commercial. In the Good Ol Days there was retail on bottom and an apartment on top, the bottom has since been converted to living space. The top currently rents for 550$ month, and could easily rent for more with little cosmetic updated/ changes/. For the bottom as of now i plan to renovate it to be a two bedroom one bath apartment to live in. The bottom was gutted by the person who is selling it. I would like opinions on if i should finish the space and occupy it, or lease the bottom to a retail/office tennant, and occupy the top unit. and what are the best ways to attract commercial/office tennants?
The building is in a dense up and coming neighborhood in South Stlouis, a place where small businesses thrive. The space is about 1,000 SQFT. on each floor.
We don't see this kind of content around here very often so I thought I'd bump it and see if we can shake out some more input.
There are, of course, loans that are beneficial to you if you buy intending to occupy 50% or more with your own business.
Moving back to commercial from residential can be tricky even with satisfying code questions about, say, parking. Also tricky to sell a business on the idea (look/feel) of a space that used to be res-you have to give them something pretty neat to hang their hat on.
Getting a commercial tenant in who raises the visibility of the building in the community but who may not be a great NNN tenant that you dream about could be cool. I'm basing this off the idea your property isn't A or B+ commercial. What will add to the community fabric in the near term and help the building/block/area along towards the kind of commercial you envision?
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