Mixed use Development. Pro`s and Con`s.

One of investors wrote me the other day regarding mixed use developments. Here is the question along with our answer. As always your questions will be answered in a timely manner. Please email to realestatefla1@hotmail.com
Q: Why all the talk and new interest in mixed use developments, and why would government push for and allow these higher density projects?
A: History has a way of repeating itself, even in real estate development patterns and trends. Many of you reading this column can remember when towns were developed, not gated subdivisions off busy highways in the suburbs. These towns allowed residents to work, shop and enjoy recreation within walking distance of their homes. A mixed use development is just that, a simpler lifestyle which, in turn, helps reduce traffic congestion and urban sprawl.With mixed use developments, a higher density is needed (more living units per acre) to support the retail and office component of the development. With high density comes lower land costs for each residential unit, meaning lower home prices or rents for the residents. Let me say that again, a simpler lifestyle that more people can afford.
In light of the fact that more than 50 percent of Florida`s work force cannot afford to buy a home in the county they work in and our road congestion is not getting better, mixed use developments make a great deal of sense. I applaud the people in government who understand the concept and are looking for ways to make mixed use development work in our market.The problem with mixed use development is not allowing more density, which is required for its success, and, ultimately, helps the entire community. Many developers are afraid to design mixed use developments, which can cost well over $1 million just to design, because they can be turned down by government agencies, not allowing them to move the project forward. This generally occurs when neighboring residents or the government agencies themselves do not understand the benefits of mixed use land planning and deny approval of the concept.