Mixing it up
By: J. David Chapman/May 2, 2019
There has been an eruption of mixed-use developments sprout up across the country. A mixed-use development is a combination of residential and nonresidential uses in the same building or complex.
The intent of these real estate projects is not just to incorporate various types of real estate together, but use each to complement the other. City planners spent decades trying to separate residential, retail, office, industrial, government and educational uses. Many even use zoning to place them across town from one another, forcing citizens to drive distances to fulfill their needs throughout the day. This planning mentality has created a society very dependent upon the automobile and has increased commuting time for citizens. Today’s planners are embracing mixed use as a possible solution.
Done correctly, developers are enjoying improvement in home affordability and walkability between the residential component, workplaces and amenities. Probably the most intriguing reason to consider mixed-use develop is the opportunity to build stronger neighborhoods and a deeper sense of community. The residential component, ideally, would be a mix of rental and owner-occupied units. They would also have a variety of price point options. With this diversity in ownership models and price, citizens are not forced to leave their local area when their lifestyle needs change. This manages to keep families and friends close and tends to build a sense of pride and community.
Studies show a clear connection between walkable environments and economic viability of a city. A report by CEOs for Cities, called Walking the Walk, states that the “resurgent interest in downtowns and in promoting mixed-use developments throughout metropolitan areas is, in part, driven by a recognition of the value of walkability.”
This land-use strategy is being used to promote and revitalize downtowns all over the country, building and supporting a good business climate, increasing private investment, leading to higher property values, promoting tourism, and creating a better quality of life for citizens.
These are all great reasons for zoning mixed-use projects, but the best may be the savings that are achieved by municipalities on infrastructure costs, like roads and sewers, when serving compact development instead of large-lot subdivisions. The savings even increase when saving on design, construction of transportation systems, water and wastewater, electric, telecommunications, and other utilities. Now, let’s mix it up.
J. David Chapman is an associate professor of finance and real estate at the University of Central Oklahoma (jchapman7@uco.edu).