Mixed-use development offers both residential and commercial real estate options within one building, creating a community that draws on different income streams while being resilient against economic fluctuations.
Assess the priorities of the community to see if mixed-use development fits with them, such as increased business vitality or destination connectivity. This approach may reduce significant alterations to neighborhoods while meeting all objectives (Benicia 2007).
Walkable Communities
Walkable communities are designed with residents in mind rather than cars; residents are able to access all their day-to-day needs within walking distance from home – from retail shops, restaurants and public transit, schools, parks and workplaces – within a five minute stroll from home. While typically found in urban environments, walkable communities also work effectively in suburban neighborhoods.
Communities promoting social interactions provide numerous economic benefits to homeowners as well as businesses alike, including lower crime rates, reduced environmental impacts, greater job opportunities and enhanced health.
Establishing a walkable community requires careful planning to ensure its streets, sidewalks and other walkways are safe, easy to traverse and without obstructions. This involves engaging key stakeholders in the planning process in order to build support and encourage participation as well as including natural elements like trees, grasses and plants that can help buffer traffic noise, regulate temperature, reduce pollution levels and absorb rainwater runoff.
Attract a Wider Market Segment
Attracting tenants who value urban lifestyle amenities near their homes such as restaurants, artisanal bakeries and films with walkable communities has long been an attractive prospect for prospective tenants. Millennials particularly value this factor.
Combining residential and commercial spaces into one development attracts more people, leading to increased revenue and offering increased profit potential – an attractive asset for developers and investors.
Commercial tenants value mixed-use properties because of their built-in customer base. Businesses like restaurants, breweries and even sports arenas can utilize this diverse customer base to attract more business. Furthermore, it helps reduce marketing expenses which ultimately increases profits.
Multiple Income Streams
Building mixed-use buildings that combine residential, commercial, and retail spaces enables developers to maximize rental income while decreasing vacancy rates and attract and retain tenants more effectively while encouraging increased foot traffic to businesses within their development.
Mixed-use developments are more attractive to investors due to the combination of rentable spaces that help stabilize cash flow and decrease vacancies, providing resilience against economic fluctuations that affect individual segments.
Mixed-use properties can enhance walkability, which reduces dependence on cars in a neighbourhood and contributes to creating a more sustainable city. This is especially true if amenities on the ground floor of such properties are used by residents while the upper floors contain residential units; having such amenities within reach increases residents’ convenience and reduces travel costs; using video intercom software like ButterflyMX makes accessing their building easy – without needing physical credentials from tenants themselves!
Regulatory Barriers
Zoning laws and other statutes that segregate uses can create hurdles to mixed-use development depending on local circumstances. Sometimes these restrictions necessitate developers obtaining variances or site approvals before proceeding, which often spark opposition from stakeholders known as NIMBYs (No Impact My Neighbor) while financing may present unique hurdles depending on each use evaluated separately for approval.
Local governments can address these obstacles by using strategies such as expedited permit reviews or reduced development fees that are feasible to promote mixed-use projects (U.S. EPA 2015). They could also offer design guidelines which showcase successful mixed-use developments while meeting community vision through construction projects.
Mixed-use neighborhoods offer numerous advantages for employee residents and retailers, while developers reduce risk by diversifying across markets. But to realize these goals requires an in-depth planning process which takes into account any issues that may arise along the way.