Imagine you are putting a puzzle together. You have an idea of what the final image will be, but it is slightly fuzzy. Not a problem, right? What if the pieces for it were mixed in with the pieces of five other, very similar, puzzles. Did it just get harder? This is what it's like when trying to determine the pieces of a new mixed-use development. In order to find the right pieces you must narrow the available options down.The term mixed-use development is applied to any development, from multiple buildings to a single building, that combines at least three significant revenue producing uses with physical or functional integration. A growing demand in the commercial real estate (CRE) market is to combine residential, retail and office space. Of the three areas the most work, early on, goes into attracting retail shops. These act as your border edge pieces in the puzzle and help set the size and scope of the amenities offered in the development.
Now that the pieces are narrowed down to just those with a border edge it's time for the next step, finding those that have a chance of fitting together. Knowing roughly what the future users will need provides a starting point for narrowing down the targeted retail types. Example, your puzzle has a red boarder so focus on red pieces. This approach will limit the amount of time spent working with the wrong candidates. Within the current trend identifying what the residents and workers will need covers the area's main user group. As an example with this trend users will need:
- Restaurants
- Coffee Shop
- Bars and Bistros
- Grocery Store
- Bank
Once these pieces are identified you can move on to how specific ones will fit together.
Not all of the red pieces are a part of your current puzzle. They need to be further narrowed by looking for a similar style and shape. For a mixed-use development similar options to those around the area will lead to companies that are unlikely to move in. Instead perform an analysis of what is already near the development. Compare it to a broad list of companies that fit into the same category and only pursue those that are not in the analysis. From here the real leg work begins and it is time to reach out and show companies why they should move into the area.Retail amenities offered on site can be a driving factor for companies and residents to move in to the development. By establishing this area the mixed-use development can gain traction and increase its opportunity to succeed. Block Real Estate Services, LLC (BRES) is close to breaking ground on the mixed use development CityPlace in Overland Park, Kansas. For more information about the CityPlace development contact us or visit CityPlace for more information.
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