As more Americans opt for walkable communities, developers are taking note of mixed-use development as a solution for accommodating growth while meeting both residential and commercial requirements in ways that enhance community life.
Implementing a mixed-use property, however, presents unique challenges for investors. They should keep local zoning regulations in mind and reach out to their municipality early in their research process.
Pre-development
Mixed-use projects require extensive market research and analysis. Conducting detailed analyses helps to select an optimum mix of residential, commercial, and retail spaces that attract tenants while optimizing revenue generation. Furthermore, conducting a market survey helps identify local demand for various spaces as well as forecast future trends.
Not only can mixed-use developments attract tenants, they can provide numerous other benefits for communities and businesses alike. By encouraging interaction between residents and businesses as well as decreasing car usage – thus cutting carbon emissions and traffic congestion.
Mixed-use developments are also an engine for economic development and investment in urban centers; mixed-use developments often attract investors looking to invest in them. Finally, mixed-use developments may also help reduce service expenses by limiting the number of services required to run buildings; keeping track of compliance documentation will ensure your project stays on schedule for completion on schedule.
Construction
Establishing mixed-use projects requires close consideration to multiple details. Hiring a project management team to oversee construction and ensure all goals are achieved is vital for its success. An experienced team will help minimize scope gaps and identify cost savings opportunities; facilitate vendor selection processes; as well as devise schedules of deliverables at each phase of a project.
Integrating mixed-use developments into communities helps increase business vitality, reduce travel time, encourage public transit use and allow reuse of existing infrastructure and resources. Furthermore, this type of development attracts diverse clientele while expanding income potential.
However, mixed-use developments may encounter resistance from local residents and community organizations. To gain support for such developments, education stakeholders on their benefits is vital; engaging local stakeholders and encouraging public participation in planning processes also help increase trust between residents and developers; this is especially effective when transparent communications about benefits of mixed-use development are used to inform decision making processes.
Permitting
Compliance with local zoning, building, environmental, and other regulations is vital to keeping projects on time and on budget. Engaging effectively with community officials throughout the process will build trust while speeding up permitting.
Mixed-use development is a pedestrian-oriented urban form that layers compatible land uses at different scales and intensities in order to form dense communities without interruption from automobile traffic. Through this mix of uses, people are able to live, work, shop and play all without getting in their vehicles.
Though mixed-use spaces may initially meet with considerable resistance and skepticism, they can quickly become integral parts of a community by accepting their individual qualities and welcoming everyone involved throughout the planning process. Maintaining clear communications and including members of the community as part of this endeavor helps break down barriers and build a sense of ownership; having an adaptable business model which can quickly adapt to shifting economic conditions will further reduce risk.
Management
Successful mixed-use development requires an extremely specific skill set. Residential spaces need privacy, security, and amenities that cater to daily living; commercial/retail spaces should be visible with high foot traffic; selecting architects/urban planners who design layouts that complement rather than clash are of utmost importance for success.
Engaging local communities in mixed-use development projects is vital to its success. Clarifying misconceptions and providing transparency regarding benefits and long-term vision are necessary steps toward garnering their support.
Mixed-use developments are becoming increasingly popular, yet not for the faint of heart. Achieve seamless confluence between property uses requires the right team, tenants, and property management solution – something real estate investors often seek in mixed-use projects as a means to diversify portfolios while mitigating risk on complex assets with favorable underwriting fundamentals. A single source property management solution with an experience management program is key to successfully activating and operating such projects.