The mixed-use phenomenon
AN URBAN phenomenon that is gaining widespread recognition and acceptance in many parts of the world, including the Philippines, is called the mixed-use development, an integrated combination of residential, commercial, cultural, institutional or industrial uses. “This type of development is, typically, not just a mixing of commercial, retail, and residential uses, but, rather, the stacking or juxtaposing of those uses in close relationship to each other,” said McCarter & English, a US law firm.
The nonprofit education and research organization Urban Land Institute identifies three distinct characteristics of a mixed-used development. These features, cited in an applied research paper by Joshua Herndon that was published in SMARTech Home, Georgia Institute of Technology’s repository of scholarly works, are the following: three or more significant revenueproducing uses (such as retail/ entertainment, office, residential, hotel, and/or civic/cultural/ recreation) that in well- planned projects are mutually supporting; significant physical and functional integration of project components (and thus a relatively close- knit and intensive use of land), including uninterrupted pedestrian connections; and development in conformance with a coherent plan (that frequently stipulates the type and scale of uses, permitted densities, and related items).
The concept is not completely new. “Mixed-use development has been an integral part of the urban landscape for centuries,” wrote James DeLisle and Terry Grissom in their paper titled “An Empirical Study of the Efficacy of Mixed-use Development: The Seattle Experience.” They added that this is especially true in Western Europe where mixed- use projects have been synonymous with smalltown living.
According to McCarter & English, mixed- use developments, which, in almost all cases, have residential and retail components and some level of commercial and/ or office use, offer host developers the opportunity to bring multiple and different users together into a cohesive development intended to stay “alive” round the clock. “These types of developments try to bring together the uses that people want in order to live, work, and recreate in the same general area,” the firm said. These projects can be built on a new land or redevelopment parcels. Alternatively, they can be built in conjunction with malls and other projects that have been standing for years.
The growing popularity of mixed-use developments has a lot to do with the appealing advantages they confer. Brent Pace, in a piece for Gaebler Ventures, a Chicago- based business incubator, wrote that in this day and age, time is money, and the more time is spent commuting in cars or running errands, the less time there is to enjoy one’s hard-earned money. “Mixed-use development helps ease this dynamic by creating an environment where employees can live, work, and play all in close proximity,” he said.
Mixed- use development also helps in attracting the highly desired millennial generation of workers that, Mr. Pace said, can be challenging for many companies. These workers are looking for a workplace that has an “exciting and different” aura, which mixed-use developments can provide. Furthermore, these developments give lessees a chance to have their backend business functions and frontend sales functions all in the same location. “If you are a small one-off retail organization, a mixed- use development can provide you with the opportunity to have your office staff in close proximity to your retail staff,” Mr. Pace said.
Another kind of proximity is drawing commercial uses to mixed- used developments — the proximity to a viable workforce, McCarter & English said. “In fact, in some mixed-use developments, the residential component involves ‘ live-work’ units which allow the entrepreneur, much like the shop owner of the early 1900s, to run his business on the lower level while living in the upper level residential unit,” the firm said. “Again, this type of development is a perfect use of the condominium/ planned community concept.”
“This type of development is, typically, not just a mixing of commercial, retail, and residential uses, but, rather, the stacking or juxtaposing of those uses in close relationship to each other.”
In his aforementioned paper, which is titled “Mixed-Use Development in Theory and Practice: Learning from Atlanta’s Mixed Experiences,” Mr. Herndon noted that there are many contributing factors to the resurgence of mixed-use developments, and they include traffic congestion, increasing gasoline prices, changing consumer demographics and a longing for the sense of place and community, that, at least, American cities are said to lack. “In addition, city planners are embracing the idea of mixing uses because of its potential to reduce automobile dependence, support public transit, combat sprawl, preserve open space, promote economic development, and limit the expense of providing and maintaining infrastructure in low density environments,” he said.
In the United States, Smart Growth Network, a partnership among the government, business and civic organizations that promotes “smart growth,” a kind of development that supports economic growth, strong communities and environmental health, considers mixed land uses a “critical component” to achieving better places to live.
It explains, “By putting residential, commercial and recreational uses in close proximity to one another, alternatives to driving, such as walking or biking, become viable. Mixed land uses also provide a more diverse and sizable population and commercial base for supporting viable public transit. Mixed use can enhance the vitality and perceived security of an area by increasing the number and activity of people on the street. It attracts pedestrians and helps revitalize community life by making streets, public spaces and pedestrian- oriented retail become places where people meet.”
In the Philippines, real estate developers have been devoting serious time, attention and resources to making mixed-use properties in key areas, such as Metro Manila, and even in fringe areas. They are largely motivated by the growing spending power of the Filipinos and the expanding business process outsourcing industry.
Suntrust Properties, Inc., a subsidiary of Megaworld Corp., launched a sprawling 200-hectare Suntrust Ecotown Tanza in the municipality of Tanza, Cavite, in 2014. It is the group’s first mixed-use development, complete with residential, commercial and constitutional components, that is intended to cater to export- oriented industries. The parent company itself has built a number of mixed- use properties in Metro Manila, including Eastwood City in Quezon City, and has started to bring the concept to other metropolises in the south, like Iloilo City. It was reported last year that Megaworld was allocating P10 billion to put together its 21st mixed-use property in Gen. Trias, Cavite.
Another real estate behemoth, Ayala Land, Inc. has been constructing its own mixed-use properties in different parts of the country. It has a number of projects in Cebu City, Makati City and Quezon City to name a few. Recently, the company revealed that it is set to launch three mixed-used developments this year. Its subsidiary, Alveo Land Corp., was reported to be investing billions of pesos in the construction of a mixed-use development in Bonifacio Global City in Taguig. In recent years, it has launched several projects in Makati City.
Another major property developer, SM Development Corp., or SMDC, is taking an active interest in mixed-use developments. One of its flagship projects, the SM Mall of Asia Complex, in Pasay City, is being turned into a mixed-use development with the construction of various residential buildings and corporate offices. —