Mixed-use development projects have been gaining in popularity over the past decade for great reasons. At the heart of the concept is the ability to allow a tenant to choose a location that has the best of both the residential and commercial worlds. Mixed-use can mean that a person can work, shop, live, and play all within of a single development for each aspect of their lives.
In this article, we will discuss the benefits of incorporating mixed-use design in a commercial development project, and how these qualities affect not just the developer, but the resident and the development’s environment as well.
This is our sixth article in our ongoing series on development trends around the North Gulf Coast. In this series, we will cover the trends that are affecting the commercial real estate development industry, such as rooftop amenities, certain amenities of high-performance design, and the value of mixed-use development projects. If you have found this information of use, you may find the rest of the series beneficial as well.
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It is becoming more and more desirable to live close to centers of commerce, and the lines separating residential areas and commercial areas are once again blending into walkable communities. Zoning laws are evolving to dissolve the staunch divide between where one lives and where one spends their days; an otherwise residential block can also now incorporate neighborhood markets, a library, and a bookstore, a coffee shop and other life enhancing amenities and uses that add value to those who live, play and work in your development.
Added value is perceived quality
Depending on demographic demand and the specific locale of your site, a mixed-use concept has the benefit of adding value to your prospects by increasing the perceived and actual quality of life and reducing the cost living in your development. By having a multi-purpose set of spaces, the developer can tailor project to both high end quality and higher ROI.
Leasing property is a great way to earn income for a developer, however, selling can be more profitable in the short run. With mixed-use structures, there is no reason to decide entirely on one or the other. Having commercial space on the grade level that can be leased while selling individual units on upper levels is a way to leverage two types of income.
Matching vision to site
Mixed-use has the potential to be an assortment of different combinations, with the possibility to incorporate features of the area surrounding the site and optimize the developer’s vision to its environment. In the same vein, it also means that a developer can add a feature that is missing from an environment without disrupting the neighborhood’s character.
Leveraging mixed-use is a great example of a developer maximizing opportunities. It is a malleable method of tailoring a vision to optimize your yield within your proforma’s parameters.
Please join us in our next article covering some of the trends that mixed-use design has brought to the North Gulf Coast.