Mixed-use complexes win over traditional office buildings

Pandemic, transport restrictions and progressive decentralization of life and services have radically influenced the perception of the city and its utility. The most valuable merit has become the possibility of comfortable living and working and the prospect of close contact with nature, which should provide the immediate surroundings within a short walk. That is why mixed-use facilities that meet many local needs are so popular today, not only among the office workers and city residents but often also among the tourists. They bring inestimable infrastructural value, especially if they break the single-function nature of the area they are in. Therefore,  it should be assumed that this is the direction that designing in the commercial real estate sector will be heading in even faster than before.

“The more important it is to create areas where most everyday needs can be met, the greater the importance of mixed-use investments. Also for investors, projects creating urban space are much more interesting than facilities with single functions. Their value is higher. They also allow for more attractive returns,” Krzysztof Foks, Senior Analyst at Walter Herz, said.

“We should also mention the greater safety and business resilience that mixed-use complexes provide in the long run, thanks to the possibility of diversifying income. Due to their profile, they also make it possible to introduce changes in the scope of functions depending on the market demand,” Krzysztof Foks added.

This is what happened, for example, in the case of Norblin Factory in Warsaw, the construction of which is currently finishing. The investor quickly adapted the project to the market changes caused by the pandemic, replacing commercial spaces with retail and entertainment.

(WBJ)