Mixed-use development: Difference between revisions

Revision as of 09:06, 7 February 2007

Revision as of 18:43, 7 February 2007

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==Drawbacks==

Mixed use development is seen as too risky by many developers and lending institutions because economic success requires that the many different uses all remain in business. Most development throughout the mid to late 20th century was single-use, so many development and finance professionals see this as the safer and more acceptable means to provide construction and earn a profit. Christopher B. Leinberger notes that there are 19 standard real estate product types that can obtain easy financing through real estate investment trusts. Each type, such as the office park and the strip mall, is designed for low density, single use construction. Another issue is that short term discounted cash flow has become the standard way to measure the success of income-producing development, resulting in "disposibledisposable" suburban designs that make money in the short run but are not as successful in the mid to long term as walkable, mixed use projects.

Mixed use commercial space is often seen as being best suited for retail and small office uses. This precludes its widespread adoption as the trend to ever-larger corporate and government employment accelerates.