Mixed-use projects dominate retail property development
Mixed-use fever shows no signs of cooling, according to a survey published in Building + Design magazine. The Fall 2006 survey of development execs, conducted by National Real Estate Investor and Retail Traffic magazines, showed that mixed-use was the dominant retail property type for both new development and redevelopment projects over the previous 12 months.
Here are the stats:
- 28% of respondents developed mixed-use properties during the last 12 months.
- 28% developed freestanding/single-tenant properties.
- 25% developed non grocery-anchored strip centers
- 18% developed lifestyle centers.
Mixed-use projects ranked even higher in developers’ future plans. Fifty-two percent plan to develop mixed-use properties, followed by freestanding, single-tenant properties (36%), non-grocery-anchored strip centers (32%), grocery-anchored strip centers (30%), downtown urban centers (29%), and lifestyle centers (28%).
The reasons? More people want to live - and shop - in urban areas where the action is. And the rising cost and availability of greenfield sites is prompting developers to consider in-fill in urban areas. Also, communities increasingly want “smart-growth” projects that minimize sprawl and create a live-work-play environment.