Mixed Use Developments

A commercial mixed use development means a real estate or property project that combines two or more different commercial uses. There are different types of mixed use buildings. It can mean a mix of retail and entertainment, or offices and services (banks, salons, medical clinics and so on).

A successful mixed use developer will know how to integrate both commercial uses seamlessly through design and connectivity.

What are the benefits of mixed use developments?

There are lots of advantages to a mixed use development, including potential returns, the diversity that a variety of different commercial uses brings to your portfolio and the sense of community that you can build.

Sense of community

Mixed use developments play a very important role in creating sustainable, economically vibrant and engaged communities that attract people to them.

Mixed use developments in Australia can offer workers the chance to visit a gym, medical centre or restaurant during their lunch break, while shoppers can visit a cinema or other form of entertainment.

Increased revenue

A well-planned mixed use development can increase the revenue for all the businesses within. A variety of business offerings is likely to keep a consumer at the development for longer and encourage them to spend more. The consumer doing their weekly grocery shop might take their children to the cinema at the same time, while office workers with a variety of cafes and restaurants are less likely to bring in a pre-prepared lunch to work.

Diversity of portfolio

A selection of different or mixed businesses will also make an investor’s portfolio more diverse, which means they’ve spread their risk. This will protect them against an industry specific downturn and lead to more stable returns.

Although a mixed use commercial development has numerous advantages, it’s important to understand what’s involved in developing one.

Multiple management

Having a number of different businesses leasing space in your development means that you will have to deal with multiple business managers, which can be complex and time consuming. You will also need to make sure that you build the right mix of tenants (retail, office and hospitality for example) to work together and enhance the appeal of the development as a whole.

Infrastructure and parking

Multiple businesses will all have their own infrastructure needs and you will need to factor in multiple parking options, as well as making sure all other infrastructure demands are met. Depending on the competition in the area that you are developing, you may need to tailor your offering to include showers and other ‘end of trip’ facilities.

Fluctuating market demands

Market trends may fluctuate for the different businesses within your mixed use development. This is why it’s important to make sure your tenants complement each other. Ensuring the businesses you choose flourish so that you don’t have vacant units can be a balancing act, so it’s important to do your research and work with a team you trust.

Zoning and regulatory hurdles

You will need to know the local zoning laws and how they impact all the businesses within your development. There may be varying codes and permits to consider too.

It’s difficult to say definitively that mixed use developments are more profitable than residential developments, and will depend on the individual development. They do, however, offer diverse income streams, higher occupancy rates and the potential for higher rents, which makes them a great investment opportunity.

How Novus Projects can help

By carefully considering the design, flow, and functionality of each space, Novus Projects ensures that both aspects of the development work harmoniously together, meeting the needs of diverse occupants. Our award-winning expertise in coordinating complex projects means we deliver on time and within budget, providing our clients with a reliable pathway to maximise their investments in mixed-use developments.

At Novus Projects, we're committed to supporting your development needs and would love to be your development partner. We can provide a detailed quote (or tender) on your own plans. Contact us today to discuss how we can help bring your vision to life.