A Close Look At Mixed-Use Building
A longer timeline to see a return on mixed-use investment can be intimidating, but the potential rewards are substantial, writes Anthony Corin.
2 October 2024
New Zealand’s larger and more densely populated cities continue to grow, and with this growth the demand for developers to utilise mixed-use land increases.
Land zoned as mixed-use allows for developments that include residential living, recreational facilities and commercial spaces, all in one place. Mixed-use developments effectively maximise space and connect people together, offering the opportunity to live, work, and play, all under one roof.
What Can Be Built
Let’s look at what we can build in a mixed-use zone. Residential spaces are usually the main feature, ranging from studios and apartments to luxury penthouse suites. With New Zealand’s population increasing, there is a greater need to build up rather than out, which has been a driving factor for more apartment construction.
Next, we can build recreational facilities that enhance the quality of life for residents. These spaces are to be inviting to people and create a social environment. Features can include gyms, swimming pools, roof gardens and community lounges.
By having all these desirable amenities under the same roof, residents can cut down on long commutes, especially in denser cities where congestion is a large headache for many.
Lastly, mixed-use development can include commercial spaces. The ground floor of a building is where commercial spaces can thrive, with stores able to attract plenty of foot traffic, and a convenient option for residents living just above. These commercial spaces can include offices, restaurants, supermarkets, cafes and retail stores. This setup means residents have easy access to what they need without having to travel and the businesses benefit from being right in the heart of a busy community.
The Challenge
While all these features sound ideal and exciting, mixed-use development can be tricky. The design phase will require a deep understanding of urban planning, ensuring there is a good balance between residential, commercial and recreational spaces.
Developers must consider the location and how they are going to create residences that are quiet and private, provide utilised and maintained recreational areas, and create inviting and accessible commercial spaces.
Financially, mixed-use developments can present more of a challenge. Mixed-use land is more expensive to secure, and costs are often higher due to the complexity of design and construction. The longer timeline required to see a return on investment can be intimidating, but the potential rewards are substantial. A well-executed mixed-use development provides economic growth and has high marketability.
As we keep modernising as a country, these densely populated areas must be developed effectively to better serve the needs of the community. Mixed-use developments are going to be crucial when it comes to shaping our busiest cities.
Innovative designs for these spaces will transform city living, offering practical solutions to the challenges of crowded areas and providing residents with much needed convenience.
Anthony Corin and his team specialise in property development and construction using ICFs and operating through a relational contract, open-book system. Shorcom Ltd, 0800 SHORCOM, www.shorcom.co.nz