DETERMINING THE PRODUCT MIX
Mixed Use Opportunity
The current economic climate is creating additional challenges for the real estate developers. The ability to sell new whole ownership second homes is becoming increasingly difficult.
In response, many developers are now considering a mixed use product offering which expands their product portfolio to include fractional offerings.
The benefits are many: First, a fractional product offering allows the developer to offer a wider range of prices for their products, resulting in higher closing percentages and a faster sell out. Secondly, the fractional pricing structure provides the developer with higher revenues and higher profits overall. Additionally, fractional products better support resort amenities such as golf, restaurants and retail due to higher occupancy levels.
Finally, the developer who offers a mixed use product line can now offer a much more attractive exit strategy for any potential builders or investors seeking to sub-develop parcels.
