Mixed-use development can be defined as any urban real estate development that balances a mix of various asset classes i.e. residential, commercial, cultural and retail to achieve synergy, where these assets classes are physically and functionally integrated.

Many urban designers have been criticizing mixed-use developments terming it anti-urban as it creates a self-contained little world.

mixed-use development

But the truth is, throughout human history, the majority of human settlements developed as mixed-use. The idea of segregated developments started with the industrialization, the mixed-used development declined during this period in favor of large-scale separation of manufacturing and residences in single-function buildings.

We will not go further brooding if mixed-use development is anti-urban or nor. We will focus on the reasons why a developer should go for a mixed-use development.

  1. Risk Reduction: Mixed-use developments are less risky; for the developer the risk is spread across several asset classes. Even if an asset class is not performing well in certain market condition, other classes can perform well. Mixed-use development provides a good diversification opportunity to the developer.
  2. Synergy: Various asset classes work in synergy with each other in a mixed-use development. Office workers want restaurants to eat, hotels to host business travelers, and retail to shop. In fact mixed-use development also reduces vacancy risk; one asset class act as a feeder to other asset class.
  3. Good Urbanism: Mixed-use developments provide stronger neighborhood character and sense of place.
  4. Lower Carbon Footprint: Mixed-use development also reduces the overall carbon footprint. Reduced distances between housing, workplaces, retail, businesses, and other amenities and destinations make it walk-able or bike-able neighborhoods. It also reduces traffic congestion and energy consumption for transportation.
  5. Lower Parking Requirement: Mixed-use development can lower overall parking requirement if planned properly. Some parking space can be shared among various uses.

Hope you enjoyed this post on mixed-use development. What do you think, use the comment section below.




Get it NOW! Feasibility Study Template

The ultimate guide for feasibility study template is here.

We hate spams as much as you do!