What is “Mixed-Use Development” and what are the advantages in the Commercial Development business, especially here in the Las Vegas Valley? The definition is “Combining Commercial and Residential Development; zoned for both Commercial and Residential use; Projects designed for diverse functions.” More simply put; work and live in the same location. Gaining popularity in Las Vegas prior to the Great Recession, Mixed-Use Development projects can range in size from a small retail store with a couple of residential units to developments 100’s of acres in size with major retail chains, dozens of restaurants, office spaces, movie theaters and numerous residential units. But why is this concept so popular? The following four reasons explain the advantages to Mixed-Use Development.
1. Maximize the high cost of raw land: The development boom in Las Vegas in the 1990’s saw a huge increase in the cost of raw land for both Commercial and Residential Development. Prices per acre doubled, tripled and so on. To combat these high prices, Developers and Public Agencies teamed up to combine both Residential and Commercial spaces reducing the amount of raw land needed reducing the overall cost of development.
2. Commuter friendly: People who choose to live in Mixed-Use Developments enjoy huge savings in both time and money. Instead of long and congested commutes to and from work, they can either walk or bike. They also help the environment by reducing greenhouse gasses.
3. Increased Residential Sales: Mixed-Use Development drive sales of Residential units by providing easy access to amenities such as entertainment, dining, grocery and retail. In return, the Residential component provides a strong customer base for Retail.
4. Mixed-Use is “sexy”: The largest segment of society attracted to Mixed-Use Developments are the Millennials. While Baby Boomers still enjoy their big homes in the suburbs, Millennials are flocking to urban areas for both work and play. The Mixed-Use Projects incorporate beautiful architecture and lavish landscaping making for inviting social opportunities. After a hard day’s work, Millennials enjoy dining, drinking, dancing and dating all in one place.
The Great Recession is now behind us and Commercial and Residential Development has returned to the Las Vegas Skyline. The price of raw land is not as high as it used to be, but the concept of Mixed-Use Developments will continue to be popular. Anyone interested in starting or investing in a Mixed-Use Development in the Las Vegas Valley should contact Joe DeSimone at First Federal Realty DeSimone in Henderson, Nevada at 702 990 8660.