The Benefits of Mixed-Use Developments
California-based real estate leader Gino Canori serves as the executive vice president of Related California in San Francisco. Through this company, he oversees a $3 billion pipeline of commercial and multifamily space in Los Angeles, Orange County, and San Francisco. Gino Canori also manages all aspects of development for mixed-use properties.
Mixed-use developments integrate commercial, industrial, and residential space into a single site. Within such developments, residents easily walk to and from restaurants, markets, work, and entertainment. While mixed-use developments were extremely popular before World War II, they are largely replaced by a love for larger, affordable housing in the suburbs. However, they are still hugely beneficial.
Since mixed-use developments place multiple things within walking distance, they promote walking or biking more than driving. As fewer people drive, they harm the environment less and create less congestion in already-crowded urban areas. This increase in foot traffic results in business growth for companies renting in such areas, reducing transportation costs for residents, and increasing tax revenue for cities.
Beyond that, mixed-use developments promote consolidated infrastructure. This includes unified electrical services, fire protection, and better space utilization thanks to parking garages. By bundling this infrastructure together, such developments support the efficient use of varying resources. Ongoing operation of the site becomes more affordable since the development is more efficient, and costs associated with the initial construction of the site are lower.
Finally, developers and investors benefit from these types of developments, too. The inherent money risks associated with development get spread across several markets. As a result, monetary risks soften when developing mixed-use properties since strong markets support the weaker ones. Investors also reap this benefit of better financial security because mixed-use properties have such variable tenants.
