How to succeed in mixed use development – Part 1 of 4: positioning
I expect much of the discussion at MIPIM, which returns in real life today after a two-year Covid-enforced break, to focus on how to get mixed use development right; after all the core theme is "Driving Urban Change"
Not so long ago a cookie-cutter approach to development was deemed quite acceptable, and, as long as the fundamentals around location had been correctly identified, identikit shopping centres, office blocks and leisure facilities flourished around the country. I suggest those days are now well behind us and unlikely to return.
It’s certainly been an issue at the top of P-THREE’s agenda for some time now. What has become clear after countless discussions with investors, occupiers, public sector stakeholders and built environment specialists is that we have entered a period of accelerating change. We can no longer assume that what we knew to be true, even relatively recently, still remains so today. To help provide some clarity in a time of growing uncertainty we will be running a series of Perspectives on major real estate issues to allow us to examine them in greater detail.
Our first series concentrates on successful mixed use development, which, as I just mentioned, is likely to be an industry talking point this week (note P-THREE will also be at MIPIM so do get in touch if you would like to meet). In future blogs we’ll turn the spotlight on areas including: collaboration, facilities vs amenities and the real drivers of commercial and social value. But in this Perspectives I want to start with the elements involved in successfully positioning a modern mixed use development.
Not so long ago a cookie-cutter approach to development was deemed quite acceptable, and, as long as the fundamentals around location had been correctly identified, identikit shopping centres, office blocks and leisure facilities flourished around the country. I suggest those days are now well behind us and unlikely to return. In future, successful mixed use development will be achieved by considering the individual attributes of a proposed scheme in a holistic way. That last point is important: it’s no longer just about the attributes themselves, but how they interlink with each other – and the broader environment. P-THREE calls this the ‘halo effect’.
For the halo effect to truly shine, I believe there are five key areas that a proposed scheme must convincingly cover. All of these ultimately relate to human traits so that’s how I refer to them. Although I’m listing them in a particular order, I should once again point out that how they interlink with each other is as important as their individual merits:
Understanding: A very clear idea of the end-user is critical. A ‘build and they will come’ approach will only work if ‘they’ have been clearly identified. Who will be attracted to a development, where they will come from and what they expect once they arrive must be clearly understood, as it will determine detailed design work (see below) and a potential occupier base.
Trust: As the market polarises and consolidates occupiers will be drawn to development partners who have a either a solid track record in dealing fairly and reputably or a clear and convincing vision for a scheme (and ideally both). A compelling vision that generates wide buy-in is likely to come from excellent understanding.
Excitement: Good architecture and design that chimes with end-users creates a buzz that makes spaces appealing. A top-flight name isn’t always necessary, or even desirable, but a firm understanding of who will occupy a space and how they can best interact with it is. No more soulless glass boxes thank you.
Feel: A well thought-out integration of uses creates a positive impression on end-users and a subliminal feeling that a space ‘works’. This doesn’t happen by accident, it is the result of careful consideration that acknowledges not just the use, but the individual user (occupier) in a particular location.
Conscience: End-users, occupiers and stakeholders alike are increasingly looking to ensure that places they are involved with align with their own personal and corporate values. For investors and occupiers, a scheme that is ESG-friendly will be particularly attractive; and increasingly mission critical.
The halo effect isn’t necessarily hard to achieve. But it does require dedication and, crucially, regular revision. It’s certainly not a tick-box exercise. The timescale for major developments can extend over many years and, as we established at the start of this blog, events can change quickly. Whatever the size of a scheme, a proactive and dynamic approach are essential for the halo effect to work.
The next Perspectives in this series on successful mixed use development will focus on collaboration. A great buzzword of the moment, but what does it actually mean in a property context and how can it be best achieved?
Article by Hannah McNamara, Co-founder P-THREE
Photo credits: Unsplash
