Mixed-use property on Long Island, valued on both floors
Buying or selling a property with both commercial and residential space, from storefront-and-apartment to small buildings.
What mixed-use property on Long Island means
Mixed-use property on Long Island usually means a building with a business on the ground floor and apartments above: the storefront on a village main street with one or two units upstairs, a corner building with an office and a rental, or a house on a commercial strip with space zoned for both. They are some of the most interesting buildings on the Island, and some of the hardest to price, because a buyer is weighing a home, a business tenant and an income stream all at once.
We help owners sell them and buyers purchase them. Mixed-use and new construction are a regular part of our work at Berkshire Hathaway HomeServices Laffey International Realty, alongside residential homes.
Talk to us about a mixed-use property
How The Vogler Team values a mixed-use building
A single-family comp tells you very little about a building with a deli downstairs. Buyers of mixed-use property look at two things together: what the building is as real estate, and what it produces. So we look at both.
- The building itself. Mark's 30 years in construction matter here. Older mixed-use buildings have separate meters, fire separations, egress, and decades of renovations. He sees what a buyer's engineer will flag.
- The rent roll. Who pays what, on what lease, through when, and whether the rents are in line with the street.
- The use. What the certificate of occupancy allows, and whether the current use matches it. This is the one we check first, at the building department, before anything else.
We bring that together into a range and show you how we got there, the same way we price every home. Our general pricing rules are on the equity step. Where the numbers depend on financing or tax treatment, your accountant and attorney should weigh in. We are real estate agents, not either of those.
Tenants, leases and showings
Most mixed-use buildings sell occupied, and the tenants are part of the value. A commercial tenant with years left on a good lease is an asset. An apartment tenant who doesn't know the building is for sale is a problem. We plan showings around both: scheduled with notice, respectful of the business during its hours, and handled by us or Debra so the owner doesn't have to manage it.
Buyers will ask for leases, rent history and expenses early. Having those organized before we launch saves weeks. We help you pull them together, and your attorney reviews what gets shared and when.
What you get
- A walk-through of every unit and the commercial space with Mark and Gina
- A range built from the building and its income, explained in writing
- Help organizing leases, rent roll and expenses for buyers
- Marketing that reaches both owner-occupant buyers and investors, built from the launch in impact and campaign
- Showings planned around your tenants and the business
Buying instead? We walk the building with you and talk through what we see before you write an offer. Our investment property page covers income buildings from the buyer's side.
Buyers a mixed-use building attracts
A mixed-use building draws a different pool than a single-family home. Some buyers want to run their own business downstairs and live above it. Some want the whole building as an income property. Some are local business owners who have rented for years and want to own their space. Each one reads the listing differently, so our marketing speaks to all three: the living space, the commercial space, and the numbers.
Financing is different too. Lenders look at mixed-use loans on their own terms, and a buyer's approval can take longer than a standard home loan. When we review offers, we look closely at how each buyer is paying and how firm their lender is, because on these buildings a strong approval can be worth more than a slightly higher price. We recommend buyers speak with two or three lenders who handle mixed-use loans, and we can give names when asked.
Older buildings may also have questions about parking, signage or what the town allows on that street. We help you find out early, at the building department, so the answers are in hand before a buyer asks.
The paperwork buyers will ask for
A mixed-use buyer, and their lender, will look at a building differently than a house buyer does. They want to know what is legal, what is leased, and what the building actually brings in. The more of that is ready before we list, the smoother the sale. That means the certificate of occupancy and any permits from the building department, copies of current leases, a clear picture of rents and expenses, and notes on any recent work to the roof, the systems or the storefront.
Missing or mismatched paperwork is one of the most common reasons a mixed-use deal slows down after an offer is accepted. A second apartment that was never on the certificate of occupancy, or a storefront use that does not match what the building is approved for, can send a buyer's attorney back with hard questions. We help you gather what you have, find what is missing, and decide how to handle any gap before buyers ever see the building.
Mark's 30 years in construction and homebuilding help here as well. We walk the building with you, and Mark points out what a buyer's inspector is likely to flag, so you can decide whether to fix it, price around it, or disclose it up front.
Mixed-use across the areas we serve
Mixed-use buildings line the main streets of villages and hamlets all over Nassau and Suffolk. Our office is on Main Street in Huntington, and we also know Northport and Deer Park street by street. For the general picture, see selling your home, our method at how we sell, or The Vogler Team home page.
Frequently Asked Questions
Can I sell a mixed-use building with tenants in it?
Yes, and most are sold that way. Good leases are part of the value. We plan showings with notice and around the business, and your attorney guides what lease information gets shared.
How is a mixed-use property valued?
On both the building and its income. We look at the condition, the rent roll and leases, and what the certificate of occupancy allows, then show you the range and how we got there.
What if the apartment upstairs isn't on the CO?
You want to know before a buyer does. We check at the building department first, and your attorney advises on how to handle anything that doesn't match.
Do you help buyers of mixed-use property too?
Yes. We walk the building with you, talk through what Mark sees, and help you think through the numbers with your lender and accountant before you offer.
Mixed-Use by neighborhood
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