Mixed-Use real estate is simply the location of multiple uses in one development, one building or combination of buildings. While Mixed-Use real estate has become a hot topic in commercial development, it is not a new concept in the US. Nearly every small downtown across America has a main street with offices or retail below and housing units above. The concept is coming to the forefront again with the New Urbanist movement and the drive for sustainability. Suburban sprawl and personal vehicles have allowed development to happen in areas farther and farther from residences. The Mixed-Use or "Smart Growth" design is driven by "walk-ability", which is the idea of creating a higher density development with office, retail, dining and housing within walking distance of each other, eliminating the dependency on cars. Often times, these developments are located within close proximity to public transportation such, as bus-lines and commuter rails, in which case they are termed Transit-Oriented Developments or TODs.
Information on this page provided courtesy of Cornell University Baker Program in Real Estate
Mixed-Use: Any combination of office, retail, entertainment/dining and residential in a single development
Looking to the Future
The Mixed-Use sector within real estate has a bright future. As America becomes more eco-conscious and less dependent on the car there will be more need for developments offering multiple uses and amenities in a central location. Dilapidated corridors near city centers are prime candidates for redevelopment and more and more are being converted to the Mixed-Use concept. It will be key for developers to incorporate the correct mix of tenants and residential products that attract the best demographic mix that will benefit all users simultaneously.