Are your big box and power center retailers going out of business? Would you live above your local grocery store? Are you a mixed use proponent? WHAT IS MIXED USE and WHO KEEPS ON MIXING IT?
As you drive through your market you have begun to see many mixed use examples, but what are they? They seem to be popping up in urban as well as suburban areas and succeeding according to the International Council of Shopping Centers. BUT WHAT IS IT?
The term refers to developments that combine elements of residential, retail, office and entertainment. These projects are often advertised as the ultimate Live, Work, Play environment.
The growth of the mixed use development has assisted developers in creating profitable projects on properties that were at inflated prices. By building a larger density into the project the costs are spread over more units either retail or residential and it suddenly is a performing project instead of a development lost in feasibility.
So how did mixed use come about?
INCENTIVES!!! Yes your local planners and city council started it!! Developers have less impact fees when developing projects of higher densities. Although if you ask them the answer you are likely to hear is -
The scarcity of land for development has necessitated the intensification of the use of available land to accommodate future needs. Mixed-use and compact developments have become attractive approaches, especially in towns and villages where services and transportation are most available.
No matter how you feel about mixed use, it is here to stay - currently seminars and national conventions are being held to help educate developers as well as retailers about the way your shopping centers will look from now on.
Will Wal-Mart one day have 120 residential units atop their stores to take advantage of the tax-breaks?