Mixed-Use

In the New York City Metropolitan area (as in any major urban market), many properties consist of multiple uses.  Apartment buildings on major commercial corridors tend to have ground floor retail, some high-rise multifamily or office buildings have a hospitality component, and an industrial building may have spaces built out to wildly varying degrees depending on the space use.  Appraisals of mixed-use space account for the cash flow that each different use contributes to property financials and determines capitalization and discount rates for the property depending on the strength and predictability of these various income streams.