Commercial Strategy for Mixed-Use Masterplans
Evolving consumer and occupier behaviours are increasingly leading to the creation of mixed-use rather than single-use developments. The commercial benefits of housing multiple uses within a development are clear: if the provision and the environment are tailored correctly, footfall – and subsequent turnover and rents – can increase through the attraction of different audiences through the day/week/year whilst a varied user and occupier base lessens reliance on one particular audience/set of occupiers and therefore reduces risk.
However, faced with both the design challenges (different uses have considerably different architectural requirements) and commercial strategy challenges (different uses have different and often conflicting needs in terms of space, environment, brand, and ambience), many developers simply subdivide larger developments into smaller, single use plots. Though technically ‘mixed-use’ development – in that the larger development site hosts a range of uses – such design negates the benefits of true mixed-use, which is the increased turnover and value that can be created by having different audiences utilise the same space.
Beyond the challenge of accommodating the varied design requirements of different uses in a single space (which our sister company Benoy are well-versed in resolving), we see the greatest reticence to creating true mixeduse as an inability to truly understand the diverse requirements of different user groups and how a development can – or in some cases cannot – meet their combined needs. As experts specialising in the creation and implementation of successful commercial strategies, Pragma has both a broad and deep experience of the various challenges often faced by mixed-use developments and crucially, proven strategies for delivering success.
This paper highlights the process Pragma takes when assessing the opportunity for mixeduse developments and highlights some of the schemes that have been able to successfully deliver against different user requirements
If you would like to explore any of the points raised in this paper, or discuss our experience in helping developers and investors create mixed-use developments, or if you simply want to get in touch, please contact:
Andrew McVicker, Director, Pragma Consulting