Mixed-use development refers to any building or community which hosts both commercial and residential spaces within one structure or area. It dates back to ancient Rome where buildings called insulae hosted both apartment units as well as food vendors and bookstores.

Mixed-use developments offer many advantages to communities and investors. Integrating commercial and residential spaces on one property can increase its value while decreasing risk through asset diversification.

Diverse Tenant Mix

Combining residential and commercial spaces enables developers to target more market segments. This helps compensate for potential revenue fluctuations from just one market sector, making the development more resilient during economic downturns.

Integration of different uses also offers residents and tenants with a wider variety of amenities, eliminating the need to drive for daily needs. Many enjoy being able to visit their favorite restaurant without leaving their neighborhood, such as getting coffee from nearby cafes or grabbing take-out.

Transit-oriented mixed-use developments (TOMUDs) emphasize integrating residential, retail, and recreational spaces near transit stations into one integrated project. These projects often incorporate higher density construction to accommodate more people within a smaller space; encouraging people to use public transportation for commutes instead of cars thus improving overall community health. Real estate professionals looking to implement TOMUD projects successfully should consult local government agencies and service organizations regarding what needs and interests the community may have for this type of development project.

Affordability

Mixed-use developments provide more options for housing, employment and retail use than single-purpose buildings – which makes them an attractive solution in areas with high housing and job demand. Unfortunately, their upfront costs may be higher compared to conventional projects.

Mixed-use developments often require extra capital as well as local approvals and variances from various authorities, as well as more variances from local zoning laws and approvals processes. Furthermore, community opposition may increase project complexity further.

Developers can overcome these hurdles by investing in thorough market research and site selection, and building more affordable properties by including affordability incentives or requirements in their properties.

Mixed-use projects provide communities with an economical ecosystem to help them flourish in today’s uncertain economic environment. As societies and economies shift, developers should look for innovative ways to make their mixed-use properties even more competitive; Frank Dubinsky of Monadnock Development suggests adding flexible office spaces for remote workers or entertainment venues onto multifamily complexes in order to remain relevant in today’s highly competitive marketplace.

Increased Economic Activity

Mixed-use developments generate thousands of jobs during construction. Once complete, they continue to generate employment opportunities across retail, hospitality, maintenance and management industries.

Mixed-use development offers communities an excellent opportunity to strengthen their public infrastructure. Combining housing with offices and shops creates opportunities to foster social connectivity via walking paths and public transit routes; enabling people to spend less time traveling between activities while increasing community spirit.

Potential homebuyers increasingly favor walkable communities for living and prefer living within reasonable proximity of work and amenities, making mixed-use developments an attractive investment option. By diversifying tenants across mixed-use properties, developers can maintain consistent cash flow without incurring financial risk; additionally this type of property offers cost savings due to consolidated operations and infrastructure costs and can help reduce energy consumption by encouraging people to walk instead of driving; making this form a sustainable model of urban growth.

Better Health

Mixed-use developments enable residents to easily access amenities and services within walking distance, helping reduce reliance on cars, reduce traffic congestion, improve air quality, promote physical activity and foster community interactions among neighbors.

Healthcare integration can often be underestimated as a benefit of mixed use developments; however, its addition can add considerable value and address community needs. By including health facilities like hospitals or wellness centers into these developments, communities can help people remain healthy while simultaneously cultivating a culture of wellbeing that fosters happiness within themselves and their surrounding community.

Establish and prioritize local priorities through interviews and visioning sessions that support your mixed-use project’s goals, and present coordinated policies and actions that reflect them (Sandy Springs 2017). Establish baseline performance standards in areas you intend to target through ordinances and adopted plans or design guidelines (Williston 2020), including policies regarding dimensions and zoning regulations as well as pedestrian-oriented design elements (Williston 2020).