Last Updated: September 16, 2010 11:46am ET

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Who’d Want to Live in a Mixed-Use Project?

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Some time ago, I was out in Long Island, NY and drove by one of the busiest shopping centers in Nassau County. Across the street—actually, a very busy intersection—sits a brand-new multifamily development built by a recognized apartment company. And surrounding that multifamily project is even more retail shops, as well as office space.

While sitting at the light, waiting for the traffic to clear, my husband and I looked at each other and said, “Who the hell would want to live here, for god’s sake?” It’s a question we ask every time we drive through that area, because we can’t even fathom the idea of having to live so close to a bustling retail center, surrounded by incessant traffic. And even though this particular project was a standalone community surrounded by other uses, we can’t imagine living in a true mixed-use community, either.

Maybe it’s just us—we like our quiet space. Our townhouse in Westchester is part of a larger development, but we still do have some privacy and yard space. Perhaps it’s because we both work in Manhattan, so we want our home to be away from the hustle and bustle of more dense, crowded city life (though I’m sure some urban planners would not like that way of thinking).

But that’s not to say there are mixed-use projects all over the country that are doing exceptionally well. And I’m not talking about master-planned developments that span hundreds of acres and have several product types spread throughout. Nor am I referencing apartment buildings that have some ancillary retail space on the ground level. I’m talking about true, vertical (though not always) mixed-use projects that combine retail, office and/or hotel space with residential components.

These projects aren’t necessarily limited to major, high-density cities; they’ve proliferated in suburban areas as well as urban locales. One of the larger ones, for instance, is the Time Warner Center, an 80-story, 2.8-million-square-foot skyscraper in New York City. It combines the Shops at Columbus Circle, with 40 specialty retailers, a Whole Foods Market and an Equinox Fitness Club; the Restaurant and Bar Collection, featuring five high-end dining establishments; 1.1 million square feet of office space; television studios; a 248-room Mandarin Oriental hotel; and Jazz at Lincoln Center, a performance space that could accommodate up to 2,000 people. It also has two condo components—the One Central Park Condominiums, with 160 luxury units starting on the 52nd floor of the south tower, and the Residences at the Mandarin Oriental New York, located above the hotel, with 66 units on floors 64 to 80 in the north tower. Residences in both towers went for between $1.5 million and up to $45 million for penthouses.

In Chicago, there’s Water Tower Place, a major shopping destination for the region, with more than 100 stores in an eight-story atrium. But the 74-story tower, located at at 180 E. Pearson in the city’s Streeterville neighborhood, also contains 260 separate condos with parking. In Downtown Seattle, Vulcan Real Estate built two adjacent projects—2200 and 2201 Westlake. Delivered in 2006, the three-tower 2200 Westlake is known as the “Gateway to South Lake Union.” The 550,000-square-foot mixed-use project has several retailers including a 50,000-square-foot Whole Foods, a 160-room luxury Pan Pacific Hotel and 261 residential units. Vulcan’s next project, 2201 Westlake, opened last summer with 135 condos, 300,000 square feet of office space and 24,000 square feet of retail. Homes there ranged from $300,000 to over $2 million. And in Denver’s historic Lower Downtown District, the eight-story 16 Market Square project combines 25,000 square feet of restaurant and retail, 183,000 square feet of office space and 23 luxury residential penthouses atop a three-level underground parking garage.

These are just a few examples of dense, mixed-use projects. And they all “work,” in terms of attracting consumers and tenants. I’m sure it’s quite convenient to be able to run downstairs to the supermarket to pick up the necessities for a meal, or be able to simply carry one’s purchases up to your house instead of lugging the packages around the city.

But one has to ask what the negative implications are to those who choose to live in these developments. I, for one, wouldn’t want to have such public places so close to my home.
With these projects, there are the obvious concerns about noise, crowds, traffic, safety/security, visibility and having to fight with shoppers for a parking spot. And then there are other issues that arise, especially given the nature of this economy. If one of more of the project’s tenants go under, and their spaces go dark, does that diminish the quality of the overall project? Does the value of your condo go down? Or, if one of the restaurants or bars that are part of the project happens to be a popular hangout spot—does the noise from those establishments bother the residents of the building?

What makes the residential components of these projects so successful (and they are, if you were to just look at the prices paid for some of the units)? Are only certain types of people attracted to these projects? And how do developers and managers ensure that the projects’ residents remain happy with their living arrangements?

Perhaps these are non-issues; obviously, a lot of planning and collaboration goes into these developments before a shovel even hits the ground. I’m just in awe of people who can live in these large, dense, crowded complexes

Then again, this is also coming from a person who a) hates to shop, b) has no patient for crowds, and c) gets annoyed by the tourists that get in the way of my commute. I’m just cantankerous like that.

(To search across all ALM blogs, go to www.Lexis.com.)

Comments+ Add your comment

Posted by David C

Sule, Very perceptive. I live in a Midwest city (no, not Chicago) and we have neo-urbanists who extol the benefits of mixed-use projects as the answer to many issues. However, the one thing that I keep coming back to relates to Jane Jacob's book-The Death and Life of Great American Cities-and that is that the process needs to be organic. Think about the great urban spaces (the genesis of the current mixed-use development cycle) and, in my opinion, they all evolved organically. The current manufactured urban nodes rarely work. Cities are messy and one of the great experiences of an organic mixed-use venue is at the edges. This by definition will never occur in a master planned mixed-use project. My thoughts.

August 06, 2010 at 04:59 PM EDT #
Posted by miamihotelguy

Several of my co-workers live in Downtown Dadeland, a mini-city in the suburbs of Miami that grew around a mall and a metro-rail station. To me, a city person, if you want city living, live in the city. But these folks love that they have the convenience of all of the retail, the security of high-rise living (we all travel frequently and leave our homes un-tended), and the proximity to work in our suburban office site. They also enjoy what I have always enjoyed in Miami Beach...a pedestrian lifestyle when not at work, as everything is in walking or bicycle distance.

August 09, 2010 at 10:59 AM EDT #
Posted by leigh b

While many like the "new" projects, things age and maintenance, especially for a high rise costs plenty. I see the success for these types of projects being heavily reliant on retaining and attract the right mix of retail tenants. A dark anchor in a shopping center hurts the in-line shops; I can imagine it must be a negative on the HOA, translating to condo values. Last thought about design relative to a residence...do such "planned" projects zap the creative spark?

August 09, 2010 at 11:30 AM EDT #
Posted by PL Jones

Mixed use developments, whether "organically" created as in NYC with street level retail and apartments/townhouses above or entrepreneurially created as wtih the vertical city of the John Hancock Tower in Chicago provide a quality lifestyle while reducing their carbon footpriint as people typically have shorter commutes to both work and shopping and may even have access to entertainment venues as well....While it is not for everyone, we can only hope that there continues to be strong demand for this real estate product. The key is in making sure each use is designed to address specific concerns, like noise and safety while maximizing the synergy of the various uses.

August 09, 2010 at 11:35 AM EDT #
Posted by Joseph W

To get organic growth of this kind requires a rethinking of current zoning laws. One of the primary issues is that zoning simply doesn't allow these developments to form organically, so the only "mixed-use" developments we get are the kind the author abhors. Look at the West Village as a typical example of a mixed-use development that does work, does not have excessive crowding, noise, or any of the other drawbacks the author mentions. Density and mixed-use does work, it just needs to be permitted in areas outside of New York City.

August 09, 2010 at 01:38 PM EDT #
Posted by 0nlyonamerica

There is no question that to eliminate the daily commute and have all your consumption, physical and entertainment needs at your finger tips regardless of weather conditions is great for the working days of the week. Not answered in this survey is what percentage of the mixed use residents have week end, vacation, and/or seasonal homes elsewhere in more countrified areas?

August 09, 2010 at 05:09 PM EDT #
Posted by David K

Sule, These are you views and I accept them as valid. You prefer the suburban lifestyle. Twenty years ago, I lived in midtown Manhattan, corner 48 Street and Second Avenue, for ten years and liked it just fine. I walked to work and rented cars as needed. Today, it costs 4-figures per month to park a car. This is the urban lifestyle. Today, I live in Montclair, NJ, one-quarter mile to shopping, restaurants, post office, movie theater, train service to Manhattan, and until budget cuts, the public library. This suits well and I wouldn't want to live in a suburb. I call it town living. Valid, valid, valid. All three are different and valid.

August 09, 2010 at 08:25 PM EDT #
Posted by Merc

I would be interested in learning how these projects effect the people who live in and grow up in them. There has always been some concern that density itself fosters
callousness, cynicism, a lack of empathy, and to some extent that leads to the necessity for a highly structured environment for children, and eventuallty to higher crime and a deteioration of "community". I grew up in suburbia and enjoyed a great deal of freedom and unstructured playtime, we had open fields, playgrounds, sports fields and woods to roam in. I think I had the entire neighborhood imprinted in my mind and in a great deal of detail! We made up our own games and activities. I wonder what happens to kids growing up in such a structured environment where there is so little freedom. Anyone??

August 10, 2010 at 12:47 PM EDT #
Posted by Eddie A

Sule, I agree, there certainly are pitfalls for poorly located projects that turn their backs to the surrounding community. As an Urban Planner I often come across these projects and can't help but make the distinction between "real" mixed-use projects located centrally in urban areas within proximity to transportation and public infrastructure, and those projects that are located outside of an urban area often in ex-urban areas based mostly on suburbia's rising property values. The later is instigated by land margins rather than the actual availability of anything that resembles mixed nodes and therefore fails the pedestrians they intend to serve. Without adjacent public spaces (museums, parks, libraries, etc.) the critical pedestrian traffic falls off a cliff 500 feet from the project. The result is an island with a captive audience that will tire of the restaurants, retailers, fads, and eventually, the project.

August 10, 2010 at 01:28 PM EDT #
Posted by Captn Bob

How interesting this subject is up for discussion - mixed-use was the original building model for cities from the early ages mostly for convenience, fortification, lack of transportation, closeness to work, etc.
Today it serves a great purpose for the urban dweller who wants no lawn, no garbage, no maintenance, turnkey living, in a active lifestyle urban setting. Not everyone wants this, but people who do thrive here.
It is also an effective way to share a wonderful amenity such as location, views of river, mountains, beachfront, historic or dramatic skylines.
Transportation eroded this building type (particularly the automobile) allowing residences and work to become more spread out. Services necessarily became more spread out and less efficient as they followed the new planning models. Part of today's financial pressure on cities, town, counties today is the cost of inefficiency in providing services.
Canada has it right with regional zoning - density in the urban core and rural character outside the core - i.e. no suburbs.
And creativity(?) asks another comment - what could be more creative and exciting that Time/Warner Center in NYC.
Guess I must be pro urban core active living!

August 11, 2010 at 01:38 PM EDT #
Posted by John C

Preplanned Mixed use never works because it is too designed to be expensive and if the rent does not kill it the annual property taxes will kill it. The ONLY mixed use that works over the long-term is grown ORGANICALLY over time and is rooted in having NO ZONING restrictions. If a space works as an apartment, let someone live there, if demand for retail means a store can make profit then allow them to operate in that space. Cool, funky, artsy.

August 13, 2010 at 03:30 PM EDT #
Posted by Garry Owen

To each their own.

August 16, 2010 at 10:57 AM EDT #

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