Communities looking for density on small available sites arepushing for multiple uses, according to Kite, the president and CEOof Indianapolis-based Kite Realty. Mixed-use has rapidly becomeimportant to the development company, which went public in August2004, and has more than $500 million in projects in the pipeline.Much of its focus will be in the Southeast, particularly Floridaand North Carolina.

"There is more risk because of the various product types," Kitesays. "But ultimately you'll see more of it, because that's whatthe cities want." That can help with the most challenging part ofthe development process, getting entitlements in place, hesays.

"The entitlement process is a tougher and tougher barrier toentry," Kite observes. That can affect the returns, which areimportant to the format, he said, and could even affect itsgrowth.