Around here, our San Luis Obispo builders want to know…have you noticed? Mixed-use developments are quickly gaining momentum, not only along the Central Coast, but also across the United States.
So, what’s the deal?
Both developers and investors are increasingly looking for opportunities to integrate product types in order to design destinations that attract residents and business tenants. Not to mention visitors, diners, and patrons.
Last year, U.S. construction spending reached an all-time high of $1.26 trillion. Know what made up a significant amount of that number? Mixed-use developments. Here are four key reasons why they’re seriously on the rise:
1. Mixed-use design makes for more effective land use, especially in coastal communities like ours.
2. Increasingly, people (Millennials in particular) want walkable communities to fit their active lifestyle, and that means providing a blend of work and play with open-air retail and housing all in one engaging space.
3. It’s true what they say – consumers are all about convenience. It’s nice to not need to hop in the car to hit the grocery store, take a spin class, or brunch with friends.
4. Mixed-use developments provide valuable diversification for investor portfolios while offering downside protection. Think of it this way, mixed-use projects are made up of many uses and tenants, so vacancies hurt less than single-use buildings.
Now that you’ve got the lowdown on why mixed-use building is on the rise, here’s what needs to happen to make this type of development a success:
- Architectural design respects the neighborhood’s heritage
- Exceptional building amenities and finishes
- Housing is filling an unmet need
- In-demand commercial tenants move-in
- Public transportation is accessible nearby
Know that Abbott | Reed Builders is the ideal commercial construction company positioned to bring your mixed-use project to life. Contact us today makeitright@abbottreedinc.com or (805) 316-1440.