Mixed used real estate development is a broad concept which can refer to different types of building. So, what makes a new real estate development mixed-use?
Generally, mixed use real estate development refers to any real estate project which incorporates multiple types of uses or real estate products. Common types of real estate development are typically broken down into two major categories, residential or commercial:
Mixed use real estate development combines any number of applications together into one project. This can range from small retail or office spaces at the base of apartment towers, to master planned developments which incorporate everything from single family homes, senior housing, grocers, shopping, dining and more.
Real estate development and construction is hard enough, so why make it more complicated by developing multiple types at the same time?
There are many benefits of mixed-use real estate developments which is why many communities, cities, institutional investors, and banks prefer it. The primary benefit of mixed-use development is that it delivers something for everyone. By combining multiple uses, the needs of more consumers are better met. For example, while an apartment building on its own provides housing for a certain number of individuals, an apartment building which includes a grocery store at its base provides a vital service not only for the apartment residents but for the broader community.
Additionally, mixed-use development has proven to be a better investment for developers, banks, and communities alike. By incorporating multiple types of real estate products into a project therefore broadening the appeal of the product, the asset is better insulated from potential threats like pandemic or recession. Additionally, by expanding the consumer pool, the financial performance of the project improves, generating better returns for investors and higher tax revenues for communities which can be reinvested into the community.
Focus has been at the forefront of the mixed-use real estate trend. As a developer and general contractor founded in 1993, Focus has over 30 years developing and delivering best in class commercial real estate products – most of which have mixed product types. From simple mixed-use developments which incorporate 1-2 uses like:
To major master planned projects which incorporate multiple uses and phases.
To learn more about Focus’ experience with mixed-use development or to discuss a project of your own – please reach out today.