Mixed-use development has become an integral component of many communities, from revitalizing older commercial districts to new construction. By combining residential and commercial spaces into one cohesive whole, mixed-use developments provide tenants easier access to amenities while decreasing commute times while diversifying revenue streams for property owners.
Horizontal mixed-use properties feature varied use between floors within a building while vertical mixed-use properties feature retail shops, offices and multifamily housing on different levels within one tower.
Historical Background
Mixed-use development has experienced rapid expansion due to a combination of factors. These include residents wanting more flexible living and working options; needing less car dependency; limitations imposed by traditional residential/commercial districts; as well as rising awareness of monofunctional city limits as negative assets.
Initial mixed-use developments consisted of high-rise buildings with retail and commercial spaces stacked atop residential units. This form of development maximizes investment while simultaneously increasing efficiency and diversity.
Local governments frequently implement plans to foster mixed-use development via zoning amendments and comprehensive plan updates. For instance, Middletown in Delaware recently added a mixed-use land use designation into their comprehensive plan update in support of creating an active downtown district. They also adopted a form-based code for their Hamlets & Villages chapter which encourages walkable communities with multiple functions integrated together into one community.
Potential Benefits
Mixed-use development offers numerous potential advantages that can facilitate economic growth, stability and resilience. High density neighborhoods in particular reduce car usage for work-related transportation purposes – and in doing so decrease greenhouse gas emissions and sprawl.
Communities benefit from having a greater diversity of incomes within one neighborhood, providing a broader platform for retail shops, restaurants, and other local businesses to operate within. Businesses that hire from within their community tend to hire employees from that community further strengthening the local economy.
Communities can gain greatly from having green public spaces and spaces that encourage walking or taking transit to access social and cultural interaction, and foster an overall sense of belongingness in the neighborhood.
Financing
High-density mixed-use developments offer multiple advantages over single-use projects: less land and infrastructure are required for similar uses, they generate higher returns on investment, and they support long-term market demand.
Mixed-use developments offer cost-efficient real estate formats that attract higher-quality tenants at competitive rents and provide enhanced resiliency. Furthermore, these properties support healthy lifestyles and communities by encouraging community involvement and decreasing loneliness.
Local governments can promote and facilitate mixed-use development in several ways. One is by including a vision for mixed-use development in their comprehensive plans or amending existing ones to reflect this concept.
Other strategies involve offering financial and regulatory incentives to encourage redevelopment in designated growth areas, downtown development districts or other market-ready (re)development zones. Examples of such incentive programs can include fee reductions, tax abatements and expedited development approval processes. Finally, zoning ordinances that permit mixed-use developments can streamline mixed-use projects.