Over the past decade, the popularity of mixed-use developments in the United States, including Chicago, has surged. Mixed-use developments are considered tactics often used to rejuvenate communities by creating a space where residents can also work and shop. While mixed-use developments usually mean larger and taller buildings, an arguable dissent of some, the benefits of mixed-use properties are reason enough to welcome the idea in many neighborhoods.
These developments allow for the consolidation of infrastructure. This includes single or fewer sewer tap-ins, unified electrical and water service, and strategic use of space such as the use of parking garages over lots. By consolidating these systems, as opposed to designing and building independent systems, developers save money and overall space – thus resulting in residual landscape for community improvements such as a park, pathway, or small business. These mechanical consolidations have allowed for creativity to run limitlessly.
Mixed-use developments create a diversified revenue system. For example, rent from residential tenants combined with longer-term leases from retailers creates a diverse and dependable flow of income. Furthermore, if the residential market were to soften, the commercial and industrial markets would keep the mixed-use development afloat until the demand for housing returns. Such a diversified revenue system creates a better value in a property’s investment potential.
In large cities, such as Chicago, mixed-use developments offer different uses that can work in synergy. Office workers want restaurants, shoppers want to catch a movie, residents want to run to a nearby grocery store. With everything conveniently located, residents and the workforce population won’t feel the need to veer far from the development. Also, from a developer’s perspective, if the public is looking for shopping, living, and dining in close vicinity, it makes sense for a developer to provide them all and hold onto that additional revenue. Not only adding desired conveniences to the community but changing the dynamic of it.
Lastly, residents living in mixed-use developments, or areas where they are present, are less likely to drive as much compared to those living in outlying areas. A recent study illustrated just how much mixed-use developments promote alternative forms of transportation. Residents in well-designed mixed-use developments drive half as much as those around them. Essentially, mixed-use developments encourage an eco-friendly lifestyle.
So, what are some main takeaways here? Mixed-use developments…
- Consolidate infrastructure and save space
- Gives a license to endless creativity
- Creates a better investment potential
- Are safer economic decisions for developers
- Create a synergistic community among workers and residents
- Encourages an eco-friendly lifestyle and use of alternative forms of transportation
With over 20 years in the Chicago real estate industry, Arnell Cordero has been a Chicago resident since childhood, he knows the city and suburbs inside out. Initially, Arnell’s experience stemmed from running a family-owned property management business in the Logan Square and Bucktown neighborhoods.
Arnell places a strong emphasis on customer service, understanding that communication and responsiveness are as important to clients as his vast real estate knowledge. Whether you’re buying or leasing, selling, or investing, Arnell will make every effort to make your real estate needs as seamless and successful as possible!