Mixed-use developments are one of the fastest-growing areas of real estate development. They are essential parts of communities, providing places where people can live, work, shop, and meet other lifestyle needs within a single neighborhood. The rise in mixed-use development is not an anomaly. There are a few key reasons developers are building more mixed-use projects.
Mixed-use developments are an efficient way to utilize property in areas with limited available land, especially large metro areas and coastal regions. While building housing above retail space is not a new concept, mixed-use development projects have increased in scale to create smaller communities and redefine neighborhoods. By utilizing less land to meet the market demands and the current urban development trends, mixed-use development is a boon to cities and their residents.
Increased urbanism is a major driving force behind the increase in mixed-use development. Lifestyle trends are changing and projects are aiming to meet the demand. The sense of convenience and community is becoming of more value to consumers. People are more interested in the walkability of their communities. The ability to shop, dine, and play are all integral aspects of this new type of development.
In combination with the increased demand for convenience, labor force trends are driving people to live closer to their employer. Also, with the increase in employees working remotely, shared workspaces are growing in popularity among mixed-use developments. Developers continue to adapt to consumers’ needs, building more efficient, walkable, and diversified mixed-use developments.
The growing demand for mixed-use developments is not just a benefit for consumers; it is also becoming a windfall for investors for a host of reasons. Most notably, mixed-use developments provide investors with a variety of revenue streams. By integrating the different uses for a single property, the risk is diversified to protect against regular changes in the real estate cycle. Well designed mixed-use developments are made to meet the demands of their markets with each component increasing the productivity of the other.
Mixed-use projects will continue to grow and meet the demands of consumers. It will be up to developers to design mixed-use projects that creatively address the increasing demand for convenience, efficiently utilize space to maximize productivity, and provide investors with an opportunity to diversify their portfolios.
At Mayer Building Company, we are a creative team that gives our customers the top-end industry experience. We are a smaller company but operate administratively like a large contractor. Learn more about our work on retail and historic commercial spaces in New Orleans. If you have a project in mind or want to learn more about our work, call us at (504) 315-8423 or contact us online.
