Why Mixed-Use Is the Biggest Asset Class for Design/Build Projects

The design-build construction model has quickly risen in popularity in the wake of rapidly rising construction costs. The model helps curb costs by getting all of the stakeholders in a room early to create a highly efficient construction process. Mixed-use assets are driving a lot of that activity. The asset class is one of the fasted growing in the US, and design-build has become a staple for these projects.

“Mixed-use is one of the fastest-growing sectors of development in the U.S., and is a primary driver for today’s commercial design/build projects,” Barry Caylor, VP of business development at design-build construction company OTL, tells GlobeSt.com. “A 2017 NAR study revealed that the majority of Americans—53%—prefer to live in walkable communities.”

In addition to consumer preferences, the pillars of the development process have also seen the benefits of bringing more integrated and walkable communities to market. “Beyond these consumer preferences, developers, architects, city leaders and many others in the commercial real estate industry are increasingly recognizing the bottom-line value of creative placemaking,” says Caylor. “By building walkable communities with a mix of product and infusing these destinations with landmark design/build features such as water features, outdoor living rooms, art, and other central elements that attract people, property owners are finding deep ROI.”