Around the world and even in the U.S., mixed-use developments are experiencing a great surge in popularity. The word ‘mixed-use’ has now become a buzzword in today’s real estate market. The sexiest cities or urban settlements now have a massive number of mixed-use properties. It is a fact that mixed-use development has grown in popularity. Also, with its glowing benefits to local authorities, developers, residents, and organizations. Regardless, it still doesn’t guarantee you 100% safety. Like every other thing, it comes with its disadvantages but it also has advantages.
Moving a mixed-use development into reality from the blueprint stage is thanks to a proper survey. A careful survey of the pros and cons of mixed-use properties helps it get off the ground and running. S3DA design firm happens to be one of the best in mixed-use development and MEP designs. You can always reach us for more tips on Mixed-use properties.
Every item with an advantage also comes with a disadvantage. It only depends on the extent of the disadvantages and if the risks are worth taking. A mixed-use building is not left out as it also offers the same. In this article, we’ll be having a look at the advantages and disadvantages of mixed-use development.
Advantages and Disadvantages of Mixed-Use Development
- The Live, Play & Work Dynamic:
In this present generation, time is money and every bit of time is very important. More time you spend on the road traveling, the less time you have to enjoy yourself and have a fun time. This means you less time you spend on the road, the better it is for you.
Mixed-use development helps you with that. It creates an environment that allows people to live, play and work all in the same place or proximity. Reducing the need to spend much time on the road.
- Front & Back End:
This benefits a lot of organizations that want to have their staff nearby. You can have your front-end sales function and back-end business function in the same location. This is most beneficial to small one-off organizations.
- High Returns:
There are always some benefits to enjoy for every party when mixed-use developments are concerned. The government and local authorities are not left out. Mixed-use properties produced high returns to the government through property tax and sales tax. This is why it is a high revenue-generating property.
Developers as well can feel at ease knowing that their monetary risks are being spread out between many markets. When the demand for residential spaces softens, there is a backup. They can rely on income from commercial and industrial spaces. Those spaces can help keep the project until the demand for residential spaces increases.
Compared to their suburban counterparts, those residing in mixed-use buildings do enjoy more affordable housing. More because the housing in mixed-use properties is often smaller than that you find in suburban properties. Occupants of mixed-use buildings in urban areas do enjoy the best of MEP designs. This means you get a nice residential space, MEP designs, and a little fee.
- Project Difficulty:
Mixed-use buildings can sometimes be difficult to build. This is because the financier will have to assess the uses separately. Depending on the location, the building and zoning permit might also be difficult to get. This can make it difficult to get the project up and running as soon as you need to.
- Infrastructure Limitations:
The provision of public service and infrastructure can be a point of concern. Depending on the location of the mixed-use development, improvement to infrastructure will need to be made. Things like electricity service, roads, and sewers, amongst others. In most cases, the municipality often asks for the cost to be shared with the developer.
With mixed-use development growing at a high rate, people and organizations are often willing to lend or invest in your project. Still, financing remains a huge problem. This is because it is still very difficult to finance. If the developer lacks the required funds to pay upfront for the project, this will then be a huge task.
If you want to know how best to approach financing for any construction project, contact the S3DA design firm.
- Property Management:
Finding the right team to help manage your property is another challenge when it comes to a mixed-use building. Depending on your mixed-use development and how mixed it is, your management team might need many partners. This is to have each partner handle their specific area of expertise.
At present, there are a few firms that can help with this project management. Thanks to the popularity of mixed-use development. But you might have a hard time finding the right one. Need a world-class project management team? Contact us for more help.
It is easy to see the advantages and overlook their disadvantages. To have a successful survey and a great mixed-use property, you need to cover all angles. Weigh all options and see if the risk is okay for you before making a decision.
Should you reach any difficulty in your process, we are always on hand to help you out. From mixed-use development, MEP designs and so much more. S3DA design firm has you covered. Contact us for more tips and information on how to get the best out of your project.