Mixed-use developments are more common than they used to be. People’s preferences have changed, and investors and city developers have responded. The goal now is to combine residential, office, and retail all in one location.
This kind of development creates a walkable community that is good for the local economy, and benefits residents, employees, and visitors of that neighborhood. Emphasis on encouraging mixed-use development from city leaders has continued for many reasons.
What Is a Mixed-Use Development?
Mixed-use developments are a combination of residential, commercial, and cultural buildings that are planned within a city. These real estate projects can range from a single building to an entire neighborhood and are typically developed to correspond to the specific needs of the location and demographics of the area.
Mixed-use projects aim to offer a variety of advantages from improvements in home affordability to walkability between housing and other amenities. When a mixed-use development is thoroughly planned and designed correctly, it not only incorporates various types of real estate together but complements them.
Benefits to Your Community
There are many reasons mixed-use development projects continue to increase. Everyone involved benefits from a major investment in a city or municipality. Here are a few benefits that keep the mixed-use development trend going.
1. Local Economic Improvements
Mixed-use developments support local businesses by increasing foot traffic. What is appealing about these projects is their proximity and convenience to new clientele. Mixed-use developments have the power to attract a lot of interest and foot traffic compared to stand-alone stores, strip malls, or shopping centers.
These public transit-friendly neighborhoods minimize the need for car ownership. Many residents, employees, and visitors can walk from work or their homes to eat, shop, or catch a movie. The money saved on transportation can be spent in the local neighborhood. These developments give people more of what they want so they remain there and invest in your property.
For cities, mixed-use developments encourage private investment, promote tourism, and increase tax revenue. The objective of these properties is to transform neighborhoods that bring residents and visitors to one location to live, work, eat, shop, worship, and play.
2. Social Connectivity
By reducing the need for vehicle travel, mixed-use development also brings shared community space. Plazas, parks, and sidewalks foster interaction among community members. These public spaces are incorporated into multi-use developments to encourage people to get outside and mingle.
3. Investor ROI
Investors offer residential and commercial real estate, diversifying their portfolio.
Diversifying can help investors minimize the total impact of bad assets and give them the resources to counterbalance the loss.
Mixed-use developments are considered to be safe investments because there include a variety of uses and tenants. This provides investors with diversification and less risk due to there not being one large tenant whose vacancy could negatively impact them.
They also benefit investors by providing higher income, longer leases, and less competition. This means income streams from both residential and commercial deals that can lead to opportunities for more development possibilities in the future. By including different types of businesses, investors and developers create destinations that will attract many tenants and buyers.
Environmentally conscious individuals favor mixed-use developments for their sustainability. Many mixed-use developments repurpose old buildings and avoid overbuilding, which promotes sustainability. Being able to walk to their desired destinations also saves them the costs of having a car. With fewer cars on the road, the environment benefits from a lower carbon footprint.
5. Better Property Management
Mixed-use developments have many commercial tenants that will keep the property well maintained to continue to attract buyers. Developers may need to use a management service company to address the diverse needs of the entire community. These benefits include higher quality tenants, shorter vacancy cycles, better management processes, and improved support.
One enticing aspect of mixed-use developments is their location. These properties are situated near existing amenities such as schools, libraries, and parks. Many residents have a strong preference for more central locations with easy access to a city's amenities. Mixed-use development works with these trends to create connected communities.
Ready to Build?
If you see potential in an area or want to revamp a location, consider a multi-use development to attract a variety of businesses that serve a diverse group of people.
Mixed-use developments offer great benefits to investors, residents, tenants, and visitors alike. If you’re a developer interested in designing and building this type of project, Pickett, Ray & Silver can help.
We offer land use planning and sustainable design solutions. We will study the impact of the proposed development on the economy and community and propose a design that focuses on making your vision a reality while retaining the integrity of the community.