Real estate developers might seem like they’re behind the scenes but, when it comes to what they put out into the world, they need to strut their stuff as boldly as any catwalk model. Also, like fashion models, they need to ensure that the fashions they’re selling are in style for the upcoming season.
Yet, real estate trends are frustratingly elusive. There’s no big design house deciding what’s hot, nor do developers themselves choose the next big thing. Instead, they’re at the mercy of residents who are constantly changing what they like. And right now, they seem to favor mixed-use developments.
Having grown in popularity ever since Covid, mixed-use developments that include apartments for rent directly alongside commercial and green spaces, offer a convenient way of living that young residents, in particular, are sure to appreciate. Far from being a passing fad, this switch to more inclusive real estate looks like it might stick, and here’s why.
# 1 – Adding Value for Everyone
Real estate developers have a reputation for prioritizing their own returns above all, but mixed-use developments add value for everyone. Studies show that developers can charge up to 22-33% higher rental prices in a mixed-use space, and they’re far from the only people who benefit.
Mixed-use developments also bring obvious value to residents, who are able to gain easy, and relatively affordable, access to amenities that sit right on their doorsteps. Meanwhile, employers operating business or retail units in these developments benefit from proximity to a wide talent pool that’s far less likely to get lost or held up somewhere along the daily commute. Few real estate arrangements hold such appeal to so many people, making mixed-use developments an undeniably tempting option.
# 2 – Getting the Local’s Onside
Real estate developers have a notoriously difficult job of getting locals onside. In fact, local opposition to things like planning permits stands to derail entire property empires. But, you’ll find there’s far less opposition to a mixed-use development that offers something everyone can get behind. After all, communities have been crying out for this kind of development ever since the trend of local shops died out decades ago. What’s more, opening up some areas of development, such as retail units, to even non-residents means that the broad usage possible with a mixed-use development is sure to be popular.
# 3 – More Sustainable Building
Sustainability is a driving concern in every industry right now, and real estate is no exception. Waste, pollution, and environment loss are just a few of the industry sustainability issues that are still far too prevalent. Mixed-use developments don’t necessarily solve those problems, but they do offer a more sustainable alternative to many other real estate focuses by reducing resident travel needs. Mixed-use developments are also often located within unused buildings or warehouses, which saves on the need for brand new developments in otherwise untouched locations.
Real estate trends shift with surprising speed, but when you consider these benefits, it’s fair to say that mixed-use developments look set to become far more than just another passing priority.
