Mixed Use Development: What are the Benefits?

Mixed use development refers to a form of urban or suburban development that blends residential, commercial, cultural, institutional, or entertainment uses into one space, where those functions are physically and functionally integrated, and that provides pedestrian connections. Key components of mixed use developments typically include a combination of housing options, retail spaces, offices, and public amenities like parks and recreational facilities, all situated within a walkable area.

Mixed use developments have now become more common than any other time in the past. This is mainly caused by the people's preferences and city developers have responded by creating unique designs that combine office, residential, and retail units in the same locations. The design makes it simple to use resources more sustainably and offers a neighborhood that people can associate with more. In this post, we will look deeper into the concept of mixed-use development to help you understand what it is and the associated benefits. 

In the face of growing urban populations and the increasing demand for efficient, sustainable urban spaces, mixed use developments have gained prominence. They are considered a critical strategy in urban planning, addressing issues from reducing urban sprawl to enhancing the quality of life for city dwellers. As urban areas seek more sustainable growth models, mixed use developments provide a viable solution by promoting denser, more efficient land use and reducing the need for extensive commuting.

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What is Mixed Use Development?

Although there are a number of definitions available for the term “mixed use development,” the most popular is the one from the Municipal Research and Services Center (MRSC) of Washington. In the context of urban planning, MRSC indicates that it is a pedestrian-friendly development that combines several, two or more, commercial, cultural, residential, institutional, and/or industrial uses. It is one of the main principles of Smart Growth strategies that seek to promote community design and development for serving the environment, community, economy, and public health. 

Although the term “mixed use development” has become the buzz phrase among developers, some tend to confuse it. We must indicate that it is not just limited to multi-story buildings that come with commercial units in the lower floors and residential units in upper sections. If a building has a hotel on one end and offices on the other, it would still fall under the category of mixed use development. 

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The Main formulas Used for Mixed Use Development

As we have highlighted, mixed-use development combines several uses into one structure of the area. The two most used methods of mixed use development are: 

• Horizontal Mixed-Use Development: In this formula, single-use buildings are developed in a mixed-use area, which allows for multiple land uses. A small area with parts of its buildings used for offices, hotels, and industrial operations would be a good example of horizontal mixed-use development. 
• Vertical Mixed-Use Development: This is the opposite of the horizontal mixed use development formula. Instead of the different establishments, such as houses and offices, being allocated entirely in different buildings, they are pooled in the same house. This is the commonest type of mixed development out there. A good example is a house with a hotel on the lower floors and residential units in the upper stories. 

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Benefits of Mixed Use Development 

Now that you know what mixed use development is, why would a developer recommend or it? Here are the main benefits that come with using mixed use development: 

1. Increased Property Value

Mixed use developments often lead to higher property values for several reasons. The synergy created by combining residential, commercial, and leisure spaces makes these areas more desirable, leading to increased demand and, consequently, higher property values.

Here is how mixed use development lead to value retention and appreciation:

·         Desirability: Mixed use developments attract a diverse range of residents and businesses. The convenience of living, working, and recreating in the same area enhances the appeal, which increases demand.

·         Reduced Vacancy Rates: The combination of multiple uses can lead to lower vacancy rates compared to single-use developments, as the variety of services and facilities attracts more consistent foot traffic and tenant stability.

· Adaptive Use: These developments are often more adaptable to changes in the economic environment. For example, if retail spaces are struggling, they can be repurposed for other uses, thereby maintaining the property's value.

• Local economic improvements: Using mixed-use developments support local enterprises to increase foot traffic. Most people also love the mixed use design because it is pretty convenient to get to work, shop, and live around. 
• Impressive Social Connectivity: Combining different uses, such as office and residential units, means that people will not need to travel a lot. With parks, plazas, sidewalks, and other facilities, there is greater social connectivity when mixed use development is used.
• An awesome opportunity for investors to diversity: If you are an investor who always thought of investing in different industries, such as commercial and residential, mixed used development will come in handy. This implies you can attract both residential and commercial clients, making it easy to reduce the risk because no one major tenant can impact the establishment negatively. The income will also be higher. 

With the fast-growing population in urban areas, the need for mixed use development is expected to increase in the coming years. As a building and construction professional, do not hesitate to recommend it for clients who want to optimize returns from their investment. Remember that you will need to use the right building and construction applications, such as SketchUp, GIMP, and Google Earth.

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2.     Boost Local Economy

Using mixed-use developments support local enterprises to increase foot traffic. Most people also love the mixed use design because it is pretty convenient to get to work, shop, and live around. Mixed use developments act as economic catalysts in urban and suburban areas by boosting local businesses and attracting new investments.

·         Increased Foot Traffic: The close proximity of offices, homes, and shops encourages more foot traffic, which benefits retail stores and restaurants within the development.

·         Built-in Customer Base: Residential components in mixed use developments provide a steady customer base for businesses, helping to sustain them even during economic downturns.

Attracting New Investments:

·         Investor Confidence: Investors are often more willing to invest in mixed use projects because of their resilience to economic fluctuations and their ability to attract a wide range of tenants.

·         Public-Private Partnerships: Many mixed use developments are the result of partnerships between developers and local governments, attracting further investments through tax incentives and grants.

3. Job Creation

The diverse nature of mixed use developments fosters substantial job creation across multiple sectors. Jobs are not only created in construction during the building phase but continue post-construction in retail, hospitality, maintenance, and management.

Consequently, the sustainability of mixed use developments ensures long-term employment opportunities as they continuously attract new businesses and residents.

What’s more? Construction of mixed use developments often requires a wide range of skills from basic labor to specialized trades, supporting a broad spectrum of job opportunities.

4.     Impressive Social Connectivity

Combining different uses, such as office and residential units, means that people will not need to travel a lot. With parks, plazas, sidewalks, and other facilities, there is greater social connectivity when mixed use development is used.

Mixed use developments enhance the accessibility of amenities and services, contributing to an overall improvement in the quality of life for residents.

·         Proximity: By integrating residential, commercial, and recreational spaces within a compact area, mixed use developments reduce the need for long commutes, making amenities and services more accessible to residents.

·         Convenience: Residents can easily access daily necessities such as grocery stores, pharmacies, and healthcare facilities within walking distance, reducing dependency on private vehicles and promoting sustainable transportation options.

By promoting community engagement, enhancing accessibility and convenience, and offering diverse housing options, mixed use developments contribute to the creation of vibrant, inclusive, and socially cohesive neighborhoods. These social benefits not only improve residents' quality of life but also contribute to the overall vitality and sustainability of urban environments.

5. Reduction in Carbon Footprint

Mixed use developments significantly contribute to the reduction of urban carbon footprints by minimizing the necessity for vehicular travel, thus reducing greenhouse gas emissions. By consolidating residential, commercial, and recreational facilities within walking or cycling distance, mixed use developments drastically reduce the need for daily car use. Residents can accomplish most of their errands and commuting on foot or by bike.

6. Efficient Use of Land and Resources

Mixed use developments promote the efficient use of land and resources, which is crucial in the context of sustainable urban growth and resource conservation. Mixed use developments make more efficient use of land through higher-density building practices compared to sprawling single-use areas. This efficiency reduces the impact on undeveloped land and helps preserve natural habitats and green spaces.

7. Promotion of Sustainable Practices

Mixed use developments often incorporate sustainable building practices and technologies that enhance their environmental performance.

·         Sustainable Materials: Many mixed use developments use environmentally friendly materials for construction, such as recycled, reclaimed, or sustainably sourced materials.

·         Energy Efficiency: Buildings in mixed use developments are often designed with energy efficiency in mind, incorporating features like better insulation, energy-efficient windows, and green roofs, which reduce the need for heating and cooling.

·         Water Conservation: Features like rainwater harvesting systems, water-efficient landscaping, and high-efficiency fixtures are common in mixed use developments to minimize water usage.

In conclusion, mixed use development represents not only a practical solution to the complex challenges of urbanization but also a pathway towards more equitable, resilient, and sustainable cities for generations to come. It is time to embrace the opportunities presented by mixed use development and chart a course towards a more prosperous and harmonious urban future.

With the fast-growing population in urban areas, the need for mixed use development is expected to increase in the coming years. As a building and construction professional, do not hesitate to recommend it for clients who want to optimize returns from their investment. Remember that you will need to use the right building and construction applications, such as SketchUp, GIMP, and Google Earth.