MIXED-USE DEVELOPMENT

Introduction to Mixed-Use Development

The way people live in cities has evolved dramatically in recent years because of consumer
demand and the promise of ease. More and more families and individuals are willing to leave the
city in search of larger, if more distant, locations to reside, a goal that is rapidly influencing the
real estate business. Mixed-use developments are the future of our cities for many urban planners,
architects, and city residents, and with solid reason.

They integrate residential, commercial, and recreational spaces and facilities into a single
development or numerous developments inside a single complex or site. Its popularity has grown
in part due to changing urban needs and acknowledgment of its capacity to incorporate everything
an urban resident could need to live their lives in one spot. The mixed-use notion is now well-
established as an urban design and planning paradigm that contributes to the vitality, walkability,
and efficiency of the city at the neighborhood scale.

Often, the term "mixed-use development" refers to the horizontal dimension or mixed-use
form-based zoning. Within the same administrative area, the planning department combines
multiple types of land use. On the one hand, both the business and residential zones are designed
to be in the same district. As a result, some residents can reduce their commute time to work. A

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comprehensive area that includes both retail and residential properties can improve accessibility
and thus the appeal of both types of properties.

Main Types of Mixed-Use Development

There are two commonly known types of mixed-use development: vertical mixed-use
development as well as a horizontal mixed-use development. Both have important roles to play in
the direction of urban planning, and each has advantages and disadvantages. Which works best is
essentially determined by usage and the community they serve.

Horizontal Mixed-Use Development (Left), and Vertical Mixed-Used Development (Right)

Vertical mixed-use developments have a variety of applications in one building, whereas

horizontal mixed-use developments are made up of single-use buildings within complexes. Certain
buildings in a horizontal development may be used for residential purposes, while others are
allocated for public use.

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VERTICAL MIXED-USE DEVELOPMENT
Vertical mixed-use development provides tenants with several advantages. This building
type appeals to both millennial and Generation Z residents and clients, whose key priorities include
convenience, environmental friendliness, and a variety of amenities. Vertical mixed-use
development allows for the coexistence of multiple purposes within the same structure. Lower
floors are typically used for commercial purposes, whereas upper floors are used for private
purposes. For example, the ground floor could have a retail store, while the middle floors could
house professional offices. The upper floors then house apartments or hotel rooms.

This form of development is most successful when it is based on a central public location.
The purpose of mixed-use development in buildings around activity centers is to create engaging
streets, meaningful public spaces, and communities where people can live, work, shop, and play.
The phrase usually refers to development that mixes residential and commercial functions, but it
can also refer to other public amenities as well as cultural and institutional uses. Hotels and
condominium complexes are two examples.

Advantages of Vertical Mixed-Use Development

1. Adds Curb Appeal

The lowest floor of a vertical mixed-use development is reserved for street-front

retail and commercial services, attracting local pedestrians and businesses while providing

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 space for residents on the upper floors. This contributes to a bright and dynamic
commercial and residential environment that is both aesthetically pleasing and functional.
By improving the curb appeal of these locations, you may create a pleasant and walkable
neighborhood for both residents and tourists.

2. Economic Growth
Vertical mixed-use development increases the demand for local services to serve
building residents, businesses, and staff. The community's economy will flourish as new
businesses arrive to complement one another's services.
As a result of their accessible and centralized locations, mixed-use plans can be
more economically resilient overall. Even during economic downturns, consumers who
live above businesses will have requirements. Instead of waiting for online delivery or
driving to the nearest retail mall, consumers will rely on what's located nearby.
3. Optimal Residential Space
In a vertical mixed-use structure, upper-story residential unit inhabitants benefit
from improved privacy, reduced street noise, and picturesque vistas. Nonetheless, they are
still close to a variety of local amenities and career opportunities.

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 HOTELS
Rethinking the space and transforming it into a dynamic mixed-use property is one
approach to set your hotel apart from the competition. Developers are increasingly merging hotels
with projects like restaurants, fitness facilities, co-working spaces, offices, residences, and other
things to provide a competitive edge in the business.

Besides enhancing foot traffic, mixed-use hotels generate outdoor energy and provide
guests with a "one-stop-shop" experience. The option to collaborate with a local spa or restaurant
group with different concepts might be critical to the success of a mixed-use facility. Choosing the
perfect mix of retailers and recreational opportunities will not only raise brand awareness for your
hotel, but the properties will also give unique experiences that customers will not be able to receive
at other nearby hotels. These experiences may additionally be incorporated into the hotel by using
things from an on-site merchant as in-room amenities, such as minibar offerings or welcome
souvenirs.

A mixed-use development can incorporate numerous different types of uses, depending on

the demands of the project. Examples include: (1) a hotel with an apartment component (both
owned and rented units); (2) a hotel with a commercial office component; and (3) a hotel featuring
both commercial retail spaces and residences for sale or rent.

Constructing a hotel entails being able to increase the project's square footage by going
vertical. The issue with residential, retail, and restaurant developments is that they do not scale
well beyond a few stories. They can boost the floor area ratio of the projects by constructing hotels,
which perform as well as taller structures. The hotel's amenities can also be used by the other
tenants in the mixed-use property. A rooftop bar and restaurant, for example, will improve the
office campus environment.

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EXAMPLES OF MIXED-USE HOTELS

THE BELLEVUE Manila, Philippines

The Bellevue Manila is located in

the south of Metro Manila, namely in
Alabang, Muntinlupa City, and is 20
minutes from international and domestic
airports as well as the Makati Central
Business Area. It provides easy access to
main business centers, shopping malls,
restaurants, and bars, golf and country
clubs, theme parks, dive places, hot springs, and beach resorts - a great place to unwind this
summer.

COLOMBO CITY CENTRE Sri Langka

The Mall at Colombo City Centre will be the country's

largest shopping destination and one of Sri Lanka's few
locations to provide premium brands such as Apple, Fossil,
Aldo, and others. While perusing the items, shoppers and
residents at Colombo City Centre will be able to savor
everything from premium Chinese meals to Italian gelato. At
the core of the development will be a hotel catering to both
business and leisure travelers, as well as 192 nicely designed
homes, many with views of Beira Lake.

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ABENO HARUKAS Osaka, Japan

Abeno Harukas (あべのハルカス) in Osaka is Japan's tallest skyscraper, at 300 meters tall. The
structure is placed on top of the Kintetsu Osaka Abenobashi Station, directly across from JR
Tennoji Station. It houses a department store, an art museum, a hotel, and a viewing platform.

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 CONDOMINIUM
In many cases, it is not only hoteliers that see prospects in mixed-use developments, but
also other real estate developers who recognize the value of including a hotel in their projects. A
mixed-use property can be a single condominium building with a retail store and restaurant in the
lobby. Such properties benefit developers, leasing agencies, and tenants equally.

Mixed-use condominiums, which incorporate both a commercial and a residential

component, provide business owners with potential on-site clients while also providing
condominium owners with the benefit of having a restaurant, grocery store, or several other
companies available in their building. Mixed-use condominiums can function successfully and
benefit all owners depending on the type of development, the location of the condo building, and
the way the condominium company itself is structured.

A mixed-use condo on Katipunan Avenue in Quezon City, for example, is ideal for students
attending Ateneo de Manila or Miriam College, as well as commercial organizations, due to its
proximity to major schools and shopping malls.

EXAMPLES OF MIXED-USE CONDOMINIUMS

THE GALLEON Pasig, Philippines

The Galleon is a vertical mixed-use building with a

two-tower, modern design catering to residences,
workplaces, and retail products, making it a one-of-a-
kind offering in the heart of Ortigas Center. It is
currently one of the most desired pre-sale condos in the
Ortigas/EDSA neighborhood. A podium will have two
floors of high-end shopping and one story of green
landscaping and services.

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THE WOOLWORTH TOWER RESIDENCES New York City

The Neo-Gothic Woolworth Building was the

world's tallest when it debuted in 1913 and remains one of
the most attractive structures in the world today. While the
building's large, 30-story base continues in office use, the
narrow upper half was converted into 33 luxury
condominiums in 2016, benefiting not only from some of
the city's best architecture but also from first-rate services
and a superb Downtown position overlooking City Hall
Park.

SUAREZ RESIDENCES Cebu, Philippines

Suarez Residences Cebu is a complex that

incorporates a mall, a hotel, and a
residential condominium into one. The
ground level to the second floor of the
unusual L-shaped structure will have a
mini-mall with retail and commercial
establishments, as well as eateries, to meet
the needs of residents. Its fourth-floor
amenities center includes a swimming pool, a gym with cutting-edge fitness equipment, and an
alfresco lounge and viewing deck.

The hotel component will occupy six stories, from the fifth to the tenth, while the
residential sector will rise from the eleventh to the twenty-eighth, providing inhabitants with a
spectacular 360-degree view of Cebu City's dynamic urban expansion and quiet mountain vistas.

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References

Hui, E. & Zhong, J. (2021, October). REAL OPTION AND VERTICAL MIXED-USE
DEVELOPMENT. International Journal of Strategic Property Management, 25(5). DOI:
http://dx.doi.org/10.3846/ijspm.2021.15059
WHAT IS VERTICAL MIXED-USE DEVELOPMENT? (2023). Iskalo Development Corp.
Retrieved from https://iskalo.com/insights/what-is-vertical-mixed-use-
development/#:~:text=Vertical%20mixed%20use%20development%20allows,are%20res
erved%20for%20private%20uses.
Khan, F.M., Pafka, E. & Dovey, K. (2021) Extremes of mixed-use architecture: a spatial analysis
of vertical functional mix in Dhaka. City Territ Archit, 9(31). DOI:
https://doi.org/10.1186/s40410-022-00177-y
Vonder (2021, August 1). Horizontal vs Vertical Mixed-Use Developments. Retrieved from
https://www.vondereurope.com/magazine/horizontal-vs-vertical-mixed-use-
developments
Webster, J. (2019, August 23). Consider benefits, challenges of mixed-use hotels. Hotel
Management. Retrieved from https://www.hotelmanagement.net/development/benefits-
challenges-mixed-use-hotels
Wroten, B. (2022, September 12). Mixed-Use Projects a Boon for Hotel Developers During
Pandemic Recovery. CoStar. Retrieved from
https://www.costar.com/article/1108356707/mixed-use-projects-a-boon-for-hotel-
developers-during-pandemic-recovery

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