Mixed use developments have been one of the most active development models within the real estate sector. Both Developers and investors are looking for opportunities to create what the industry is calling “place making” by creating destinations for multiple user groups. With the combination of multiple uses investors see the building asset as providing diversification of risk, thus allowing for more upscale amenity spaces which otherwise in a conventional single user group building would be cost prohibitive. Amongst all commercial developments over the past few years approximately 80% of these were some version of mixed use. When properties combine multiple uses like office, residential, hotels, medical services, entertainment, and retail; each use type compliments the other by enhancing productivity and ensuring the success of the mixed-use project as a whole.
Suburban mixed-use projects are efficient use of land that otherwise may have a single story, single occupant property. For mixed use projects to thrive, the build site must be in a good trade area with a mixture social classes/ demographics. Ease of access to the street level business plays a large role in how the property engages the public way. Generally, the best locations for mixed use development will have easy access to multiple public transportation options ie. bus, trolley, train, & etc, thus allowing for better organic growth of the area as more adjacent property’s follow suit.
Mixed use consumers demand convenience, upscale, maintenance free living. Amongst all demographics millennials and empty nesters have been the more prevalent occupants of mixed-use facilities. By 2020 it is estimated that 50% of American workers will be working remotely; this has sparked rapid expansion in co-working/ shared office hybrid spaces!
The most successful mixed-use facilities blend a combination of stores catered to the urban customer. Bars, coffee shops, home furnishings, shared offices, and amenity spaces allow for the community to live, work, socialize & play all within a close proximity negating the need to travel far.
Check out Pacific Cornerstone’s latest mixed-use design above!