Developers in the U.S. are building projects with multiple uses -- particularly in cities such as Seattle with strong employment -- as they seek to balance rising demand for urban offices with strong apartment and travel markets. By providing a one-stop place to work, live and shop, they are focusing on sites that may attract companies targeting younger employees who want a short commute and the flexibility of renting.
Mixed-use real estate is an old concept that’s coming back into favor as financing options improve and people grow less dependent on cars, said Richard Green, director of the University of Southern California’s Lusk Center for Real Estate in Los Angeles.
Lenders used to be “nervous” about financing projects by a developer with expertise in, say, offices, yet no experience in apartments, Green said. They are growing more willing to lend to companies that have strong balance sheets and can put equity into the property, he said.