Get your hard hats on because we are going to be talking about development today — well, sort of.
If your mind went straight to picturing a kitschy stock photo of someone in a hard hat, you are my kind of person.
Anyways, we're going to dive into why I think the concept of mixed-use development projects could become more prevalent based on current trends across the industry.
Now, it is worth noting that the concept of mixed-use development isn't new. In fact, architecture firm KPF notes "one of the first examples is Trajan's Market (110 AD) of ancient Rome with both shops and apartments built in a multi-level structure."
However, it's certainly evolved.
What Today's Travelers Want
You and I both count as "today's travelers," right? And since I am the one penning today's blog, I feel now is a good time for me to share what it is I personally appreciate while traveling.
That is having everything in one convenient spot, especially when I'm operating through the lens of business travel. I'm talking lodging, food and beverage, retail and entertainment in one "campus."
I wouldn't want to speak for the entire human population, but I can guess that there's some others out there like me — both business and leisure travelers — who at the end of the day yearn for streamlined simplicity.
To me, that's the purpose of developing mixed-use projects.
While each person might have their own interpretation of what mixed-use projects should include, I think the University of Delaware's Complete Communities Planning Toolbox highlights it best:
"The Urban Land Institute's Mixed-Use Development Handbook characterizes mixed-use development as one that 1) provides three or more significant revenue-producing uses (such as retail/entertainment, office, residential, hotel and/or civic/cultural/recreation), 2) fosters integration, density and comparability of land uses and 3) creates a walkable community with uninterrupted pedestrian connections."
Now I can't lead you all astray without at least touching on some possible cons to developing mixed-use projects. An article on Gaebler.com lists some disadvantages as "economies of scale, difficulty of management and shared parking."
But if done right, I think it's a win-win for both travelers and the owners of these projects. Consumers get convenience while owners have an asset attached to multiple demand generators.
Projects in the Works
So who are these companies taking on these massive development projects, both in size and cost?
Here's a look at some of the largest mixed-use projects being developed as of November 2021 across the U.S., including developments in Texas, New York and Boston.
But let's talk about some of the more recent ones that have cropped up in reporting here at Hotel News Now and CoStar News.
Last week, HNN's Bryan Wroten reported that Kessler Collection announced a $150-million-plus mixed-use village development that will include a boutique lodge, mountain cottages, luxury glamping cabins, high-end shopping, full-service restaurants, event space and more in Cashiers, North Carolina.
CoStar News Staff recently reported that Hoffman & Associates broke ground on the West Falls mixed-use development project in Falls Church, Virginia, which will be the largest project of its kind in the city. The project will feature 1.2 million square feet of retail, office, hotel, civic space, senior housing and a blend of condo and rental multifamily housing.
Brands that are picking up the pace on these project types include Hyatt Hotels Corp., with its Caption by Hyatt brand that was first introduced in 2019.
The lifestyle brand recently announced its first property will debut this summer with the 136-room Caption by Hyatt Beale Street Memphis, which will be part of One Beale mixed-use development by Carlisle.
Additionally, Hyatt has four more projects in the pipeline across the globe that will be situated in metropolitan and downtown markets as well as mixed-use developments.
Don't be surprised if you start seeing more announcements of mixed-use development projects in your news feeds, or maybe this has inspired you as an owner to get in on the action.
What do you think? Would you stay at a mixed-used development? Would you develop one? What's the risk versus reward? Let me know via email, Twitter or connect with me on LinkedIn.
All I ask is you don't forget your hard hat.
The opinions expressed in this column do not necessarily reflect the opinions of Hotel News Now or CoStar Group and its affiliated companies. Bloggers published on this site are given the freedom to express views that may be controversial, but our goal is to provoke thought and constructive discussion within our reader community. Please feel free to contact an editor with any questions or concern.