Mixed-use and transit-oriented developments are becoming a staple of new construction across the US Southeast.
Mixed-use buildings are now so popular that it is becoming increasingly rare to see a new office building being constructed without either a ground floor retail or a hotel component as part of the design.
For example, the Miami market is seeing three new mixed use and transit-oriented projects being launched.
And Miami is not the only city adopting this approach to new construction projects.
Traditional Neighborhood Partners is currently planning transit-oriented developments in North Carolina. One of them is Lowe’s Grove, which will be built on the former site of a farm beside the Research Triangle Park in Durham. Park Central, a new 17-acre master-planned project located in Dunwoody, GA recently got started.
State Farm is a major tenant, leasing 585,000 sq ft in this transit-oriented development’s first office building.
Alex Carrick, the chief economist at Construction Market Data, stated recently that out of the 40 largest upcoming commercial construction projects in the Southeast, close to half of them will be mixed-use facilities. This model provides developers with a “more stable source of revenue.”
A risk in one area, such as retail stores, can be offset by activity levels in another, such as hotel accommodation.
Mixed-use projects also offer the advantage of widening the financing base for the project.
Lenders feel more comfortable about lending money one project where there will be multiple income streams, since it means that all their financial eggs are not being placed into one basket.
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