What is Mixed Use Development: Types, Pros & Cons, And Examples

By: ROS Team

Ever dream of living where your morning coffee shop, evening gym session, and weekend errands are all just steps away? That’s the magic of mixed use developments – vibrant communities where living, working, and playing seamlessly blend.

But are they all sunshine and convenience? Dive into this post to explore the different types of mixed use developments, uncover the benefits and drawbacks for residents, businesses, and investors, and see real-world examples that are redefining urban living.

What is Mixed Use Development?

A mixed-use development is an area designed to integrate various functions within a single location. It combines residential housing with commercial spaces like shops, offices, and entertainment venues. This approach creates a walkable environment where people can live, work, and enjoy amenities without extensive travel.

Different Types of Mixed-Use Development

There are two main types of mixed use developments: vertical and horizontal.

Vertical Mixed-Use Projects stack multiple purposes within a single structure. A typical example features ground-level retail spaces, with offices occupying the middle floors, and residential units at the uppermost levels.

In contrast, Horizontal Mixed-Use Designs distribute different elements across a site’s expanse. For instance, a grocery store, childcare facility, and recreational park could be strategically situated within a walkable proximity.

Beyond this basic distinction, there are many different types of mixed use developments, each with its own unique character.

Some of the Most Common Types Include:

Neighborhood Commercial Zoning: This type of zoning allows for convenience goods and services, such as convenience stores, to be located in otherwise strictly residential areas.

Main Street Residential/Commercial: These are two- to three-story buildings with residential units above and commercial units on the ground floor facing the street. This creates a walkable and vibrant atmosphere.

Urban Residential/Commercial: These are multi-story residential buildings with commercial and civic uses on the ground floor. This type of development is common in downtowns and other dense urban areas.

Office Convenience: Office buildings with small retail and service uses oriented to the office workers. This could include things like a coffee shop, a dry cleaner, or a fitness center.

Office/Residential: This type of development combines office space with residential units. This can be a good option for people who want to live close to where they work.

Shopping Mall Conversion: This involves taking an existing shopping mall and adding residential and/or office units. This can be a way to revitalize a declining mall.

Retail District Retrofit: This involves retrofitting a suburban retail area to a more village-like appearance and mix of uses. This can make the area more walkable and pedestrian-friendly.

Live/Work: Live/work developments allow residents to operate small businesses on the ground floor of the building where they live. This can be a good option for entrepreneurs or people who want to avoid a long commute.

Studio/Light Industrial: Studio/light industrial developments allow residents to operate studios or small workshops in the building where they live. This can be a good option for artists, craftspeople, or other makers.

Hotel/Residence: This type of development mixes hotel space with high-end multi-family residential. This can be a good option for people who want to live in a luxury building with all the amenities of a hotel.

Parking Structure with Ground-Floor Retail: This type of development uses the ground floor of a parking structure for retail space. This can be a good way to activate an otherwise underused space.

Pros and Cons for Investors, Residents, and Business

Investors:

Pros:

Diversification: Mixed-use projects incorporate various income sources like residential, commercial, and potentially office or hospitality, reducing risk compared to single-purpose properties.
Increased Property Value: The convenience and vibrancy of these developments tend to raise property values over the long run.
Stronger Rents: High demand for units in desirable mixed-use areas can potentially command higher rents for residential spaces.

Cons:

Higher Development Costs: Mixed-use ventures often necessitate intricate planning and construction, leading to increased upfront costs.
Finding Tenants: Filling vacancies might require tailoring to different tenant types, requiring a strategic leasing approach.
Management Complexity: Managing a mixed-use property with varied tenant types can be more intricate than managing a single-purpose property.

Residents:

Pros:

Convenience: Necessary amenities like shopping, dining, and entertainment options are potentially within walking distance, reducing car dependency.
Vibrant Community: These developments foster a vibrant community atmosphere. A diverse mix of residents, businesses, and activities creates a lively environment.
Increased Property Value: Owning a unit in a desirable mixed-use area often leads to appreciating real estate prices.

Cons:

Noise and Traffic: Depending on the layout, residents may experience disturbances from nearby businesses or high foot traffic zones.
Privacy Concerns: Living close to commercial areas can mean less privacy compared to purely residential neighborhoods.
Higher Rents or Property Costs: The convenience and desirability of mixed-use living often translate to higher rents or property costs.

Businesses:

Pros:

High Foot Traffic: Businesses benefit from a consistent stream of potential customers residing or working within the development.
Visibility and Convenience: Being located in a mixed-use development offers good visibility and convenience for potential customers.
Synergy with Other Businesses: Complementary businesses in proximity create collaborative possibilities and cross-promotion avenues.

Cons:

Higher Rent Costs: Leasing space within a mixed-use complex often commands a premium compared to standalone establishments.
Competition: Depending on the nature of the business, there may be increased rivalry from neighboring commercial entities.
Limited Parking: Parking availability could pose challenges, impacting businesses reliant on drive-in customers.

Examples of Major Mixed Use Development Projects in the United States

Waterline (Austin, Texas)

This under-construction project will be the tallest skyscraper in Texas upon completion. It combines residential apartments, office space, a hotel, and retail areas all within one tower.

The Wharf (Washington D.C.)

This massive development revitalized the capital’s waterfront area with hotels, shops, restaurants, apartments, and even recreational areas like parks.

Hudson Yards (New York City)

This ambitious project is transforming a former industrial district into a thriving neighborhood with luxury residences, commercial skyscrapers, cultural institutions, and high-end retail stores.

Centennial Yards (Atlanta, Georgia)

This upcoming development aims to create a walkable urban center with a mix of residential units, office space, retail stores, restaurants, and a stadium district.

Pearl District (Portland, Oregon)

This former warehouse district has been converted into a vibrant mixed-use area with trendy shops, art galleries, restaurants, breweries, and residential lofts.

How Do Mixed-Use Developments Benefit the Environment?

Mixed-use developments help the environment by encouraging residents to walk, bike, or use public transport, reducing car emissions, and promoting a more sustainable lifestyle.

Can Mixed-Use Developments Increase Property Values?

Yes, mixed-use developments can increase property values due to their convenience, vibrancy, and potential for strong rental markets, making them desirable places to live and work.

What Is the Difference Between Mixed-Use and Multi Use?

Mixed-use developments blend residential and commercial spaces into a unified project. In contrast, multi-use properties integrate various functions, such as offices, fitness centers, and childcare facilities, without residential components.

Takeaway

Mixed-use developments combine different types of buildings in one area, like homes, shops, offices, and hotels. This setup creates convenient neighborhoods where people can live, work, and enjoy amenities nearby.