I'm considering acquiring a mixed use property in the downtown area of a small town. It's 3 stories, ~5700 sf per floor, 100 years old, brick. It's currently empty and needs a full reno. I'm thinking retail downstairs and apartments on the upper 2 floors.

My question: what retail/commercial tenants would you go after? Ideally, I'd want something in place (at least a verbal commitment) before I flipped the switch on the acquisition.

The neighborhood tenants include some legal offices (courthouse is center of downtown), a tattoo parlor, realtor office, a photographer, a couple restaurants, a bar, architect, theater, local newspaper offices, tool store, bookstore/coffee shop, clothing boutique, a couple churches, a few banks, a used appliance store, an Elks Club, and a smattering of empty buildings, some for sale and some for rent. Not a rapidly gentrifying area, but slowly up and coming. Upstairs apartments in some of them.

How big and prosperous is the city? Any tourist activity?

I'd at least run the figures and see if it would work to rent the apartments to artists and the ground floor a combination of work space and sales to the public.

Another possibility, if the apartments are small and you don't fix them up too much, is to put restaurants on the ground floor and rent apartments to the restaurant workers...if you want to get involved in that.

I did a 3 year deal with a Barber Shop at one of our mixed use properties. The Barber Shop has been a very good fit for the property. The shop is only open late a coupe of nights and to date there have been no issues with the apartment Tenants.

With retail operations shifting online, I would steer clear of that niche accept for something like an ice cream shop.

Thanks for all your ideas. It gives me some avenues to explore and reach out.