Mixed-use developments usually consist of retail or entertainment facilities on the ground floor and housing on upper floors, or whole neighborhoods that combine commercial, residential and cultural or entertainment uses.
Local government policies should support and facilitate mixed-use development by auditing zoning regulations to remove obstacles that inhibit market-ready projects.
Residential
Residential mixed-use development can be seen as a promising long-term investment, given tenant preferences toward eco-friendly buildings in walkable neighborhoods. But managing and financing these types of developments may prove more complex.
Redevelopment development typically refers to revitalizing inner-city commercial districts, but can also take the form of new construction in urban and suburban centers. Redevelopment development may include different housing types and sizes as well as retail shops, restaurants, offices and community spaces.
Review land use regulations to identify barriers limiting mixed-use development in your community, such as provisions that restrict residential uses in specific zoning districts; parking and transportation requirements; or design standards that do not prioritize walkability, pedestrian access or green elements.
Commercial
Commercial mixed-use developments provide business owners with an array of amenities that complement each other, drawing in new customers while diversifying revenue streams for real estate investors and mitigating risks associated with specific sectors.
These properties also make life easier for occupants, who don’t need to travel far for accessing facilities they require. This reduces their carbon footprint as they don’t need to drive or use public transit and ultimately makes them more sustainable over time.
Local governments can encourage mixed-use development by including it in their comprehensive plans and using community visioning exercises to help residents and stakeholders agree on which buildings, services and activities they want in their community.
Retail
Retail mixed-use developments range from adapting existing shopping centers for residential and office use, to building entirely new communities encompassing housing, retail, office, entertainment and commercial services. Reshaping these properties can be complex; altering how people live, work and play in local neighborhoods.
Retail is leading mixed-use development at an incredible pace and driving growth across the commercial real estate industry. Savvy developers who understand the demand for sustainable buildings in walkable, well-connected communities can capitalize on this momentum to generate growth for all commercial real estate sectors.
Planning a successful mixed-use project takes significant research. Understanding demand for each use and its effects on economic conditions will allow you to design the type of community your residents and tenants seek out.
Arts & Culture
Communities flourish when cultural activities, commercial offices and residential neighborhoods coexist in harmony within a single neighborhood. Such areas act as magnets for residents and visitors seeking diverse urban experiences.
Municipal and private developers have collaborated in the past to incorporate performing arts centers into mixed-use developments, creating mutually beneficial projects for both parties involved.
Small local arts organizations may lack the name recognition or fundraising capabilities to afford a dedicated venue; by including them in new developments, affordable space and exposure is provided at no additional cost. Furthermore, their presence drives foot traffic into restaurants and shops nearby while their flexible spaces enable groups to expand programming or attract touring performers.
Entertainment
Modern sports and entertainment venues are quickly becoming hubs of vibrant mixed-use districts. Teams and municipal leaders collaborate to spur new economic activity that draws residents, businesses and visitors alike; creating lively communities that generate revenue beyond event days.
Accomplishing these goals often requires extensive zoning approvals, complex land assemblages and public-private financing arrangements. Experienced developers who know their way around these matters are well suited to capitalizing on the political interest surrounding stadium and arena redevelopment plans while taking advantage of local tax incentive programs to structure creative capital stacks that maximize project profitability.
The Battery Atlanta and OCVibe demonstrate how lifestyle office developments anchored by sports or entertainment venues consistently outshone national trends, drawing tenants who value an authentic community environment. Achieve this goal requires early involvement of operations and property management expertise in planning so all stakeholders share an aligned vision.