Article

An Empirical Study of the Efficacy of Mixed-Use Development: The Seattle Experience

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Abstract

Over the past decade mixed-use real estate has received significant attention amongst real estate practitioners including both developers and city/ regional planners. This attention is understandable especially in light of renewed interest in urban revitalization and sustainable real estate development. Unfortunately, little empirical research has been conducted to identify the critical success factors for mixed-use development. This paper addresses this void and explores some fundamental questions surrounding when, why, and where mixed-use development is viable. It begins with an extensive literature review to help identify issues surrounding mixed-use development. It then explores some ''lessons learned'' in mixed-use development in Seattle where such projects have been encouraged by policy makers and other constituencies.

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... HOPSCA is not a completely new notion. HOPSCA is the concrete practice of a mixed-use project under the guidance of mixed-use development [21,[25][26][27]. In European and North American cities, both theoretical and empirical research on mixed-use development has long been carried out [28][29][30]. ...
... The central reason for the emphasis of those mixed-use developments is the creation of a diverse and dynamic urban environment [28,29,31,32]. From a public policy perspective, mixed-use projects are thought to help create a more vibrant and sustainable community [26,33]. The diverse and vibrant neighborhood created by mixed-use projects has been valued by academic research, and has even been considered as an important criterion for judging the success of such projects [32,34]. ...
... Although the efficacy of mixed-use development on residential properties has been increasingly recognized, few studies have sought to measure the performance of such projects [26,36]. Descriptive articles, case studies, claims by developers, and advocacy of community are dominant in the literature [36,38,39]. ...
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Mixed-use development is theoretically considered to enhance the residential value of an area. However, limited empirical research has focused on European and North American cities. HOPSCA is a real estate project that integrates hotels, offices, parks, shopping malls, conference centers, and apartments. As an important mixed-use development project in Chinese cities, HOPSCA is designed to improve the quality of urban life and to enhance the residential value of an area. Few studies have explicitly examined the effect of HOPSCA on residential property values, let alone linked this question to particular types of HOPSCA. To bridge this research gap, we selected Wuhan City in China as a case study to explore the effects of HOPSCA on residential property values. Specifically, we used the potential model to quantify the effects of HOPSCA and used the geographically weighted regression (GWR) method to estimate the relationship between HOPSCA variables and residential property values. The results are as follows: (1) the effects of HOPSCA on residential property values are statistically significant with positive and negative effects. The balanced-development HOPSCA generated the greatest effects, with the highest premium of 10.76% placed on residential properties. Moderate price premiums of 3.57% and 1.83% were generated under the influence of the commerce-oriented HOPSCA and housing-oriented HOPSCA, respectively. By contrast, the business-oriented HOPSCA exerted a negative effect on residential property (−2.43%). (2) Significant spatial heterogeneity exists on the effect of HOPSCA on residential property values. The results showed that the influence of different types of HOPSCA, viz. the higher the compatibility between the HOPSCA type and the socioeconomic context of Wuhan, the higher the premium captured by residential properties within the city areas. HOPSCA benefits the improvement of the quality of urban life, which promotes urban development. For policy makers and real estate developers, our findings suggest that matching the development types and the spatial layouts of HOPSCA with the regional socioeconomic contexts is critical for enhancing the value performance of such projects.
... These developments have also indicated that there were mixity of different uses in an area circling the noble gibis forming colonies of their own. Various experts have promoted the value of mixed usage at various times (DeLisle & Grissom, 2013;Frank & Pivo, 1994;Ghosh & Raval, 2021;Grant, 2002;Tong & Wong, 1997). The combination of varied uses seen in Megala is akin to the morphological tradition of northern and central Ethiopian cities and would benefit greatly from this context, although Kezira is unique. ...
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This study intends to explore the morphogenesis of Dire Dawa through comparative analysis. Several scholars have claimed that central and northern Ethiopian cities share a common urban form tradition, and this study compares the morphogenesis of Dire Dawa, located on the country’s eastern border, to this morphological thought. The research employs a comparative analysis technique of Dire Dawa’s morphogenesis based on Conzenian urban form elements. The findings reveal that the spatial organization of the case areas of the city deviates significantly from the conventional morphological philosophy of northern and central Ethiopian cities. Thus, the establishment of new ones and the redevelopment and extension of existing urban quarters must consider urban form philosophy in the nation along with the identity and conservation of urban form features. This will enable a well-managed morphological blending that might incorporate significant new concepts with existing local knowledge without having undesirable consequences.
... As seen earlier, studies have emphasised the significance of location and its influence on land-use mix (Dong et al., 2019;Van Nes et al., 2012). Similarly, formal planning interventions do have an influence on the forms of settlements (DeLisle and Grissom, 2013;Van Den Hoek, 2009). The intensity of mixed-land use exhibited in this morphological era could be attributed to those two factors: the first is connected to the official planning process in the two locations, and the second is related to their location. ...
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A sustainable urban form needs accommodate a mix of varied compatible land uses with ample open space ratio though going through transformation. This study, thus, aims to examine the sustainability of land-use transformation patterns from Sub-Saharan African cities’ perspective. It also analyzes consequences of formal planning interventions and organic developments on open space ratio both in the inner city and the periphery. Hence, land-use mix and open space ratio are compared over time at both plot and neighborhood levels, which are both scholarly and practical. The research covers six cases from three morphological periods. Results indicate that the intensity of mixed-land use declined over time at plot levels, while the figure increased at neighborhood levels. Besides, moving from historic cores to peripheries reduces the intensity of mixed-land use at the neighborhood level. Across years, the intensity of mixed-land use showed a decreasing trend reflecting a reduction in the sustainable urban form. To avert this, cities need to integrate practices and principles of both organic development and formal planning endeavors. In addition, ensuring mixity and the existence of ample open space ratio helps to improve sustainability both at plot and neighborhood levels.
... The recently preferred development practice is in line with the institutional approach by promoting mixed-use smart growth (DeLisle & Grissom, 2013;Ehrenhalt, 2013) by creating "vibrant central cities" (American Planning Association, 2012) that are live-work-play centers primarily for young workers and employers (Malizia & Song, 2016). In addition, Florida (2002Florida ( , 2012 argues that those live-work-play centers attract the creative class of workers. ...
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Where do firms move? While there is plenty of past literature on this subject, studies have tended to focus on large manufacturing firms and their interregional movements. This paper proposes to analyze high-growth firms, which by definition generate a direct contribution to economic development, and their movements within an intrametropolitan area, specifically Columbus, Franklin County, Ohio. The past literature related to the neoclassical, behavioral, and institutional schools is reviewed. Each school produces a hypothesis: the neoclassical predicts movement to suburban areas, the behavior school to a nearby location, and the institutional school to places with higher vibrancy, such as downtown. The findings come with three distinct patterns of movements. In other words, the paper presents a complex reality in which all three hypotheses are partially supported, and no single theory is sufficient. Thus, we need to embrace a high level of heterogeneity among high-growth firms, which, despite their variety, can still provide more nuanced implications for economic and real estate developers, both in theory and practice.
... The difficulty to operate empirical studies on mixeduse development value is attributed to the ambiguity of the data, e.g. the heterogeneity of different projects, ambiguous classification for multi-phase projects and ambiguous classification for some vertical mixed-use buildings where only the ground floor is for retail use (DeLisle & Grissom, 2013). Capozza and Li (1994) discussed the one-time land conversion option from one use to another. ...
Article
Vertical mixed-use development is a favourite choice in urban development in high-density Asian cities to increase the land use efficiency. The flexibility of construction timing and the restrictions by lease contracts in vertical mixeduse projects are usually different from horizontal ones and single-use properties. To improve the valuation for vertical mixed-use projects, this study re-examines the real option pricing model. Simultaneous development for different uses and a finite maximum waiting period are the major characteristics of these projects. An approach is introduced to determine whether to develop a mixed-use project vertically or horizontally on the basis of a statistics called the critical height premium. The vertical mixed-use project pricing model can be further verified by containing a height premium if market price information is derived from non-vertical mixed-use properties. This study suggests a more comprehensive real option approach to quantify the advantages and disadvantages of operating vertical mixed-use developments.
... Having mixed-use neighborhoods is key in sustaining economically vibrant urban fabrics [95,96], ensuring sufficient housing for all the urban residents [70], promoting inclusivity and promoting sustainable practices [97]. In the pursuit of a 15-Minute City model, the adoption of mixed-use neighborhoods is paramount in ensuring that an optimal density and proximity of essential amenities are achieved, while also providing for development of walkable streets and bicycle lanes. ...
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The socio-economic impacts on cities during the COVID-19 pandemic have been brutal, leading to increasing inequalities and record numbers of unemployment around the world. While cities endure lockdowns in order to ensure decent levels of health, the challenges linked to the unfolding of the pandemic have led to the need for a radical re-think of the city, leading to the re-emergence of a concept, initially proposed in 2016 by Carlos Moreno: the “15-Minute City”. The concept, offering a novel perspective of “chrono-urbanism”, adds to existing thematic of Smart Cities and the rhetoric of building more humane urban fabrics, outlined by Christopher Alexander, and that of building safer, more resilient, sustainable and inclusive cities, as depicted in the Sustainable Development Goal 11 of the United Nations. With the concept gaining ground in popular media and its subsequent adoption at policy level in a number of cities of varying scale and geographies, the present paper sets forth to introduce the concept, its origins, intent and future directions.
... According to the most current definition published with the participation of large real estate companies in 2006, "mixed use" is primarily a real estate project and it is realized with the planned combination of shopping, office, residence, hotel, entertainment and other different activities, and they are major subjects of investment that materialize at both local and global scales (Niemira, 2007, p. 53;DeLisle and Grissom, 2013). ...
Article
Following industrialization and modernization, globalization has asserted itself in the daily life and spatial practices at the end of the 20th century. Instead of a zoning approach separating the city from functional aspects, the “mixed-use” approach was been brought to the agenda in order to have inclusive design and sustainable city centers. The new mixed-use business areas in the İstanbul, Ankara, and İzmir metropolises constitute the focus of this study. Within the scope of this study, analyses were performed in order to examine effective dynamics from an urban scale to a housing scale. In the first stage, the planning processes of central business areas and the development of “mixed-use” approaches were investigated. Eight parcel-based structured and five area-based structured mixed-use projects were analysed, and the regional structure and dynamics were discussed. In the last stage, the projects were analysed in detail according to their functional programs. At the end of the present study, a mixed structural approach is suggested for decision-making, planning, and design implementation processes resulting in projects which will be developed in central business areas offering sustainable development and improvement. In this approach, termed “all mixed-up”, it would be possible to design affordable housing for low-income inhabitants and at the same time revive urban regions with mixed-income users, developers, and governmental institutions.
... Yaşam, çalışma ve eğlenme ortamlarını bir arada içeren çok fonksiyonlu yapı birimleri olarak tanımlanan yaya odaklı bu yapılaşma biçiminin temelde kentsel yayılma olgusunun önüne geçmek ve ulaşım için salınacak sera gazlarının azaltımı gibi hedefleri bulunmaktadır (DeLisle ve Grissom, 2013). Bu yapılar kullanıcıları için kullanım çeşitliliği ve erişilebilirlik gibi kavramları sunarken, bir yandan da ekonomik anlamda verimli yatırım araçları olmaları bağlamında sürdürülebilir yaklaşımlara sahiptirler (Aslankan, 2019). ...
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Bu makale, İstanbul’da yeşil iddiası olan üç adet karma kullanımlı çok katlı konut projesinin, LEED yeşil bina sertifika sisteminin değerlendirme kategorileri bazında analizini içermektedir. Çalışmada öncelikle LEED sistemi model alınmış ve bu yapı tipolojisi için uygun nitelikteki yeşil bina tasarım ölçütleri ışığında 53 sorudan oluşan bir ölçme-değerlendirme anketi hazırlanmıştır. Örnek projeler; yetkililerinin sorulara verdiği cevaplar, projelere ilişkin çizim ve sertifikalar ile yerinde gözlemler doğrultusunda değerlendirilmiştir. Anketi oluşturan sorular, LEED sistemi temel alınarak; beş ana kategori altında gruplanmıştır. Seçilen projelerin, bu kategoriler altındaki sorulara ilişkin olarak, gerçekleştirilmesi beklenen ölçütleri yerine getirip getiremediklerine göre, her kategoriye ait başarı yüzde oranları hesaplanmıştır. Bu bağlamda çalışmanın amacı, İstanbul’da bu yapı tipi için, hangi kategorilere öncelik verildiği ve hangilerinin ikinci planda kaldığını belirlemektir. Analiz edilen projelerin kategoriler bazında gösterdikleri başarı sıralaması ile LEED otoritelerince verilen önem sıralaması kıyaslanmıştır. Sonuç olarak, enerji kategorisine yeterince ağırlık verilmediği bulunmuş ve bu konuda dikkat edilmesi gereken hususlar ortaya konmuştur.
... When a need of formulating an industry-wide definition was arose, as said by Delisle and Grissom (2011)  Development in conformance with a coherent plan. ...
Conference Paper
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Although over the past years mixed-use real estate developments in Sri Lanka have received significant attention amongst the practitioners of real estate including developers and town planners across nations, the project tendency of the developers in Sri Lanka is gravitating mainly towards single use developments. The reason can be the benefits of constructing single use improvements or the limitations imposed on mixed-use developments. The purpose of this study was to provide an insight to the limitations to promote mixed-use developments in high-rise buildings in Sri Lanka. This study was based on a comprehensive theoretical literature review and the secondary data were used. They were collected through papers, official statistics, technical reports, scholarly journals, online articles and publications which were related to the mixed-use development concept and descriptive methods were used for the data analysis. Findings based on the literature review show that mainly there are six significant bases where the leading limitations to promote mixed-use developments in high rise buildings arise. Namely they are ownership twists, land assembly, government intervention in regulations and infrastructure, planning application and procedures, funding and institutional investors' criteria, health, hygiene and environmental issues and management. These study findings will be useful for property developers in the industry, city planners and general public to recognize and be aware of the limitations and overcome them in future developments as this establishes an understanding on the limitations in promoting mixed-use developments in high rise building in Sri Lanka under six main categories.
... Support areas, such as car parks and mechanical plant space, do not constitute mixed-use functions. In addition, according to the definition stated by Delisle & Grissom (2011) and by Schwanke (1987), it's clear that mixed-use development can be explained as a combination of different land uses with many components which tend to create many benefits. ...
Conference Paper
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A rapid urbanization at an accelerating rate is observable around the globe. Many countries will face challenges in meeting the needs of their rising urban population. The property development industry can be identified as a major industry that gets affected by this scenario. Since the end of the civil war, Sri Lankan property developers have planned and implemented various smart developments including mixed-use development projects that create a substantial impact on the industry as well as on the economy. However, a proper study was not carried out in Sri Lanka to identify their trends and literature is not frequently found. This review contributes in deepening the literature on these smart developments in Sri Lanka as well as supporting parties involved in the property development industry. The sample of this study was the first 500 mixed-use skyscrapers in the world as per the data available in the Database of the Skyscraper Centre and the Database of the Emporis. As per the findings of this study, after 2005 property developers around the world adopt land use mixing in their new projects and percentage is expected to reach 30% by 2024. In Sri Lankan context, although the percentage of mixed-use skyscrapers is expected to decrease from 50% to 22% by 2024, it was found that the number of mixed-use skyscrapers has increased including the top three tallest buildings namely Lotus Tower, The Ritz-Carlton Tower and Altair. Further, it was apparent that majority of these developments are strategically located around Colombo 01, 02 and 03.
... Analyzing recent urban development, Ehrenhalt (2013) found that young and educated adults and affluent retirees were moving into central cities, whereas immigrants and less affluent households were moving out. In practice, real estate developers now prefer mixed-use projects in urban core areas (DeLisle and Grissom 2013), and real estate investors have come to favor urban infill and redevelopment projects in large "gateway" cities ( Kelly and Malizia 2016). On the basis of creative class theory (Florida 2002b), Florida and his colleagues have argued that highly educated and innovative professionals were drawn to urban amenities found in so-called superc- ities. ...
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What kinds of places have high entrepreneurial activities? There has been an emerging body of studies about so-called entrepreneurship ecosystems, but virtually all of the past studies have examined this question from a perspective of which metropolitan areas have higher entrepreneurial activities. In this article, we examine the intrametropolitan scale at the Census tract level. By analyzing thirty metropolitan areas to extend external validity, we demonstrate the concentration of high-growth firms in specific employment nodes in both urban and suburban parts of each metropolitan area. Significant correlations exist between place-based vibrancy indicators and high-growth firm concentrations.
... In sum, the literature in planning and housing includes a wide range of studies that discuss and measure the impacts of mixed land uses, density, and development on housing costs (Aurand, 2010 ;DeLisle & Grissom, 2013 ;Dong, 2015 ;Duncan, 2011 ;Koster & Rouwendal, 2012 ;Song & Knaap, 2004 ). However, no empirical research analyzes the affordability of housing in mixed-use zones in the context of waning support for affordable housing by the government and increasing income inequality due to occupational restructuring. ...
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Problem, research strategy, and findings: Mixed-use zoning is widely advocated to increase density; promote active transportation; encourage economic development; and create lively, diverse neighborhoods. We know little, however, about whether mixed-use developments affect housing affordability. We question the impact of mixed-use zoning on housing affordability in Toronto (Canada) between 1991 and 2006 in the face of waning government support for affordable housing and increasing income inequality due to the occupational restructuring accompanying a shift to a knowledge-based economy. We fi nd that housing in mixed-use zones remained less affordable than housing in the rest of the city and in the metropolitan region. High-income service occupations experienced improved affordability while lower wage service, trade, and manufacturing occupations experienced stagnant or worsening affordability. Housing in mixed-use zones is increasingly affordable only to workers already able to pay higher housing costs. Our findings are limited to Canada's largest city but have lessons for large North American cities with similar urban economies and housing markets. Takeaway for practice: Mixed-use developments may reduce housing affordability in core areas and inadvertently reinforce the sociospatial inequality resulting from occupational polarization unless supported by appropriate affordable housing policies. Planners should consider a range of policy measures to offset the unintentional outcomes of mixed-use developments and ensure affordability within mixed-use zones: inclusionary zoning, density bonuses linked to affordable housing, affordable housing trusts, and other relevant methods.
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Building vertical greenery has become an effective measure to solve the contradiction between the shortage of urban greenery and the increasing demand for greenery. However, the lack of direct economic benefits dampens motivation for its development. As a vital development mode for high-density cities worldwide, commercial complexes are the most appropriate buildings to support greenery because of economic agglomeration and resource integration. An important reason for whether or not commercial complex greenery is constructed is the need for an evaluation system. To bridge this research gap, we propose a holistic evaluation guideline for commercial complex greenery. First, a list of related sustainable rating systems from the academic literature and official websites was compiled and reviewed to identify and compare their referential features. Second, the limitations of these evaluation systems in assessing the greenery of commercial complexes were explored using a case study. Third, the features of commercial complex greenery were introduced through field research and interviews. Finally, a holistic evaluation guideline for vertical greenery systems in commercial complexes was proposed, including logical thinking for the evaluation system of the dimension–indicator–quantitative method, the creation of innovative evaluation indicators, the establishment of a database, the assignment of weights to different dimensions and indicators, and the construction of an evaluation mechanism for the whole life cycle. This research demonstrates the significance of an evaluation process for commercial complex greenery systems, proposes a refined guideline for its development, and rationally grasps the development direction from a macro perspective.
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Chapter
There are two basically different ways of dealing with the spatially extended economy. We can ask the question: “Where should a certain activity be located?”; or we can ask: “Which activity should be chosen at a certain location?” Location theory deals with the first question, land use theory with the second. Both, of course, address the principles underlying the spatial layout of an economy.
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The redevelopment of strip malls, light industry, and other underused parcels into mixed use infill projects has quickly become one of the hottest trends in the country. In the process, suburbs from Aurora, Illinois, to Brea, California, are updating their retail and commercial zones and changing the lives of their residents. Mixed use infill offers a win-win situation. Municipalities can maximize available land by combining retail, commercial, and residential uses, while residents can enjoy a lifestyle free of long commutes - with shops, restaurants, and other conveniences just a short walk away.
Article
In California, more and more people are opting for high-rise and mid-rise residential homes. Recognizing high-rise infill as a new trend, John Laing Homes' Irvine office is pressing ahead with a 130-unit, eight-story condominium project in the northern Orange County city of Fullerton. The project, referred to as the Irvine Business Complex, covers 2,700 acres on either side of Interstate 5. The complex is envisioned as a huge mixed use district where more than 10,000 residential units mingle with hotels, shops, and millions of square feet of offices. While Irvine has the IBC, Anaheim has the Platinum Triangle, an 800-acre industrial area south of Disneyland. Although both are planning high-density housing, they have taken different approaches. Irvine's IBC plan places high-density housing close to business parks and high-rise office buildings. Anaheim's Platinum Triangle plan puts the housing near a commuter station and the Angel Stadium, Arrowhead Pond, and other entertainment facilities.
Article
As anti-growth sentiment increases across the country, two laudable goals—affordable housing and environmental protection—are coming into conflict. This tension is most evident in California. Nine of the ten least affordable communities in the country are in California. California also has one of the most complicated and expensive environmental regulatory processes for development. This results in builders being unable to produce housing to keep up with demand, and an increase in the cost of those units that are available. “Smart Growth” is often proffered as the answer to this dilemma: by promoting more compact development, mixed-use and mixed-income neighborhoods, and creating jobs near housing and transportation, housing production will be available to meet the demand at affordable costs. While these principles may serve as a valuable planning guide, they are not a panacea. In this respect, local governments have used inclusionary housing programs as one tool to respond to this escalation of housing costs and probably will continue to do so.
Article
The right balance of uses within a scheme may make a mixeduse scheme successful and financially viable in its own right, but it is necessary to ensure that these types of development genuinely contribute to the sustainability of an area, and that they relate to their immediate setting and assist in the regeneration of the surrounding vicinity.This paper will investigate how these types of scheme can and should be integrated into the street scene without creating monolithic developments that cannot be broken down into varieties of scale and form. It will consider the term 'mixed use' and dispel its simplistic definition. Mixed use can equally be a combination of single-sector uses and work just as effectively, as long as the wider picture is appreciated. These developments need to become more outward looking and create a sense of place. With finite space available the paper will also look at how existing developments, particularly traditional shopping centres, can be augmented and improved and how businesses themselves can assist in the regeneration process to benefit both themselves and the local population.
Article
The economic viability of 'local walk-to shopping' districts in newly designed 'traditional neighbourhood developments' in the US is examined. Evidence is presented on: the scale and density of development acceptable to Americans; planners' preference for walkable neighbourhoods; and, the size of retail establishments necessary for economic profitability. Data on household expenditures in various categories are compared with the minimum scale for retail outlets to determine development density necessary to support such stores by walk-to shoppers. Alternatively, assuming acceptable development densities, the proportion of shoppers who will have to drive to the retail stores in the development area is examined. The evidence indicates little chance of neighbourhood retail districts surviving on local walk-to shoppers alone.
Article
Purpose The purpose of this paper is to integrate land use and option pricing theories using case study analyses to compare a portfolio of uses comprising single and mixed‐use development on the same site and assess the effects on the risk‐return profile of potential development schemes. The integration of land use development based on highest and best use (HBU) is tested against a combination of uses on the selected sites at a point in time in the downswing of the real estate cycle. Design/methodology/approach The proposed methodology integrates the development valuation approach with option theory in which both consider the relationships of cost and value associated with alternative development options. The approach used in this paper addresses the broader consideration of project coordination inclusive of land use flexibility and opportunity costs endogenously associated with development strategies. By investigating the uncertainty of economic options specific to the development process, the methodology considers the significance of complementary components of strategic decisions and entrepreneurial effort within a return/risk management strategy. Findings The stochastic model when compared to the real option model enhances strategic decisions and development project management by allowing the consideration of single/mixed‐use alternatives. The development process is facilitated by the research findings whereby alternative uses are tested to maximise the potential use of the site. The analyses consider optimal funding strategies in developing and investing for a range of use options on regeneration sites. Practical implications The significant insights apparent from the research is the quantification of the strategic specification of development as a productive process and an investment endeavour. The proposed model enables a comparison of a HBU based on a single development, a mixed‐use development or a combination of uses as the difference between the scenarios impacts on land value and profit measures, especially where these measures are calculated as distributive residuals. Originality/value The stochastic model developed in this paper provides a value‐added contribution to real estate literature by considering the complexity of the interrelationships between urban land economics, land use theory, valuation appraisal methodologies, portfolio analysis and option pricing as applied in the development of regeneration schemes.
Article
This paper revisits a speech given at a conference in July 2002 which presented some prospects for real regeneration, rather than the familiar pattern of gentrification, in the Bradbury Street area of Dalston, Hackney. Since then many of the ideas posited — some new, some old — have found support in a wider arena and are now being tested in action across the UK, as the agenda for community-led regeneration and social enterprise gains momentum. The speech ended with the crucial caveat that it was most unlikely that the full beneficial effects on the mainstream economy of such initiatives could be achieved unless appropriate local, regional and national strategies in the public sector could uphold the key principles and rules underlying this approach. This paper retraces these arguments, notes some progress on this front and focuses on the role of the private sector and retail and leisure vitality. A key theme is that the private sector, if it comes to appreciate some pressing realities and adopts these strategic principles, can contribute to real inner-city regeneration. Such regeneration will engage and benefit rather than displace inhabitants. It is suggested that this reflects wider and increasing imperatives for the mainstream economy to become more socially involved at the heart of its business.
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A number of discernible trends have been emerging in the retail and leisure field arising from several different sources. Central government policy has sought through sequential testing to drive activities back into town centres, conservation interests have increased awareness of the significant effects of historic buildings on the quality of the urban environment and an increasing interest in sustainability beyond the narrow confines of energy conservation has led to a better evaluation of what really determines sustainable development in both towns and individual buildings.In addition to these public interest pressures, the commercial and investment world has seen retail and leisure development as one of the key sustainable investment opportunities. The experience economy requires an environment equally responsive to the demands and needs of its users.The Light is a mixed-use development in the centre of the city of Leeds. Combining several different aspects and including both historic listed buildings and new construction, it has received seven awards from specialist bodies in the first ten months since its opening, including the British Council of Shopping Centres (BCSC), the Leisure Property Forum and the local People's Award for 2002.This paper examines the influence of the various policies and commercial objectives involved, combined with the serendipity of site assembly, in creating a development which responds wholeheartedly to current government policy and provides a benchmark for future projects.
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This article presents an empirical study of the relationship between neighborhood-scale urban form and travel behavior. It focuses on households who relocate within the Central Puget Sound region to determine if they change their travel behavior when they move from one neighborhood type to another. Regression models are used to predict change in travel behavior as a function of change in neighborhood accessibility, controlling for changes in life cycle, regional accessibility, and workplace accessibility. The study is unique in that it analyzes the travel behavior of the same households in a longitudinal manner in concert with detailed urban form measures. The findings suggest that households change travel behavior when exposed to differing urban forms. In particular, locating to areas with higher neighborhood accessibility decreases vehicle miles traveled.
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This study tests the New Urbanist claims that placing amenities such as parks and retail shops within walking distance of homes will increase pedestrian travel and thereby increase interaction among neighbors. It also examines the relative roles of physical design and personal attitudes and perceptions in predicting walking and neighboring behaviors. Surveys were conducted in eight neighborhoods (four inner-city, four suburban) with varying degrees of local access to parks and shops. Analyses were conducted at the neighborhood and individual levels and were supplemented with qualitative data. The findings provide some support for each of the tested relationships, but also underscore the significance of other variables, especially personal attitudes.
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Purpose Aims to explain the rationale for producing an issue on the topic of real estate investing and how these articles fit together. Design/methodology/approach Essay format. Findings Real estate is probably the largest category of assets for investors and the works in this issue will assist in the decision making processes of real estate investors. Research limitations/implications Each of these papers covers only a limited topic and more research in the area is needed. Practical implications These papers could change how asset allocation studies are conducted; allow investors to make superior returns around the turn of the month on real estate investment trusts (REITs); alter the capital structure of REITs; seek out real estate mutual funds with higher management fees (because they were associated with higher returns); invest directly in real estate properties. Originality/value All five of these papers either examine areas that have not been reviewed by researchers previously, or find results that may result in different investment decisions.
Purpose – Current economic conditions have identified a complication if not conflict in the application of valuation analysis assumptions with the free fall in asset prices observed since 2007. Discrepancies in debt obligations (from prior periods) with underlying collateral value have been opined to be an unforeseen anomaly. This investigation aims to observe an alternative perspective using data from 1900 to the present. Design/methodology/approach – This 110‐year period of observation shows that return (value) volatility is the characteristic norm of the market system. Showing volatility as a fundamental characteristic of economic and property performance supports conjecture by definition, observation and rationality that valuation analysis had to be successfully employed in prior down cycles and across divergent economic regimes. A systematic literature search was conducted to identify the application of specific value theory, premises and concepts with appropriate valuation techniques in given economic regimes. The variables derived from the literature and practices observed and designated as operating across time emphasizing recorded recessions are then tested for statistically significant associations using χ² tests. Findings – The findings show that traditional value techniques are successfully applied in stabilized and even accelerated growth periods, but weaken and even break down during down markets. Alternative approaches and techniques are emphasized and developed during these periods that address specific problems but are befitting more general issues. The alternative perspectives are then observed to operate, generating much debate for extended periods. They are then incorporated as orthodox or disappear as issues. This study identifies a statistical link between the economic and valuation concerns of the Great Depression of the 1930s and the current Great Recession of 2007‐2009. The more relevant finding, however, is that the period following the depression of the 1930s, which shows a period characterized as using innovation and alternative valuation techniques, was continued into a period that ran from the 1950s into the mid‐1990s. This was a period of stabilization, at least into the early 1980s. The deregulation of the 1980s generated a period of fewer cycles but major magnitude shifts in the less frequent measures of volatility. Unfortunately, the sophistication in debate concerning valuation procedure and valuation premises, as statistically measured, declined from the 1990s into the present period. The present economy reflects statistical measures similar to those observed from 1900‐1930. Originality/value – Given the 110 years considered in the study, the findings should not be considered original with regard to assisting the general welfare or professional decision making. However, given that the market shifted from being a useful institution to assist in the allocation and distribution of property to being a religious caveat that could only result in perfect solutions to solve all social needs, wants and ills, the findings emphasizing valuation techniques based on rational value premises that can operate to assist inference of future events subject to divergent and cyclical operations might be calmed to offer very useful assistance with procedure based on fundamentals and expression of behaviour that has long been vilified. The uses of the patterns identified in this study need to be incorporated into causal analysis.
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Over the last quarter-century Jane Jacobs has developed the argument that the dense central areas of large cities are both quality living environments and the indispensable hatchery of new jobs and economic advances for society as a whole. Her most recent book, Cities and the Wealth of the Nations, extends her earlier urban design and economic thought to the regional, national, and international scales, and it completes the sketch of a general theory of planning. Despite her great popularity, her many formulations have not been summarized for professional planning audiences, located in the context of other planning ideas, or assessed for theoretical quality. This article addresses each of those topics. I find her theoretical strengths to be originality, emotional force, style, and timeliness. I give her mixed reviews for completeness, consistency, equity, technical design, and impact. Her weakest areas are in strategic detail, empirical verifiability, and documentation.
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There is some evidence of cyclical non‐linearities in the property market but the analytical techniques used to identify them provide no insight into their source or nature. Studies of other sectors of the economy suggest that a primary cause of non‐linearities is the differential response of agents to the same shocks at different stages of the business cycle. Developers are key agents in the property sector and their behaviour may vary between different stages of the development cycle. Computer‐based behavioural modelling is used formally to imitate alternative strategies developers might adopt to formulate profit expectations and, hence, to make development decisions. When developers use current costs and values to determine their expectations the effects of property market price signals are delayed but not exaggerated. When developers’ expectations are conditioned by past experience, the effects of price signals are both delayed and exaggerated. The results of the latter strategy are more marked during periods of extreme change in the property market and act to increase the amplitude of the development cycle. An additional and developer‐specific influence on the character of the development cycle is, therefore, identified in the paper.
Article
One of the few alternatives to the suburban sprawl approach to development in recent years has been the ''neotraditional'' community, characterized by somewhat higher densities, a greater mix of uses, prevision of public transit, accommodation of the pedestrian and the bicyclist, and an interconnected pattern of streets. How well has the neotraditional model performed? Two recent prototype neotraditional communities-Kentlands and Laguna West-are analyzed and compared with a traditional turn-of-the-century streetcar suburb-Elmwood-and with conventional late-twentieth century suburbs, in terms of patterns of built form, land use, public open space, street design and circulation, and pedestrian access. Also considered are issues of transit access; relation to existing metropolitan development; livability for children, teens, and elderly; and market success.
Article
In the face of increasing suburbanization during the past half century, most downtowns towns have experienced decline, particularly those of small metropolitan regions. A survey of planners (both practitioners and academics) and other urban professionals has sought to identify small metropolitan regions considered to have successful downtowns and the factors associated with this success. Only a small number of such North American metropolitan regions were perceived as possessing a very successful or successful downtown. Factors that characterize such success are described. We conclude that revitalization policies should concentrate on niche markets that show little interest in homogenized suburban activities. More specifically, planners should focus on the retention and enhancement of the distinct physical characteristics that clearly distinguish downtowns from suburban environments.
Article
American downtowns have utilized a wide assortment of redevelopment strategies over the past four decades in an attempt to revive the rapidly decentralizing retail sector. To compete with suburban retailing - most notably the enclosed suburban shopping mall - downtowns have employed four major redevelopment strategies: pedestrian malls, festival marketplaces, indoor shopping centres, and mixed-use centres. In addition, other strategies ranging from the main street approach to centralized retail management have been implemented in downtowns. This article will review the characteristics, application, strengths, and problems of each of these strategies, using the rival suburban shopping mall as a comparative model throughout the article.
Article
The impact of local land-use controls on the location of economic activity is an important issue in need of further research. The purposes of this paper are to provide a clear descriptive analysis of the zoning pattern in a portion of the suburban area of metropolitan Chicago, and to examine the changes in zoning that took place in the period 1960-80. The paper shows that zoning does change, and that zoning changes are at least partially systematic. The study is motivated by the relative lack of microanalytic studies of the zoning process and the need to predict land use for purposes of urban housing and transportation modeling or analyses of demand for utilities and public infrastructure. The basic working hypothesis is that local zoning officials tend to respond to market forces in a way that attempts to anticipate potential conflicts in land use. -Authors
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Groups of mobile sighted individuals, whether insect, animal or human, behave in complex ways as they search their environment for the resources needed to live. Among urban human societies, search behaviour is complex and emergent since it relates to settlement morphology and land-use pattern, both of which themselves result from human activity. Recently, agent simulation experiments have been used to study patterns of emergent behaviour in the dynamics of crowd movement and in the construction of paths through open space. Here we report simulations in which agents are given long-distance vision and direct their behaviour in response to information from the entire cone of vision afforded by the morphology of the local environment and their gaze direction. We show that the morphology of the environment and the location and aggregation patterns of resources within that environment affect the efficiency with which these agents can conduct their search. Linear streets and clustered aggregations afford efficient search for multi-target ‘comparison’ behaviour where agents search among a number of targets for a ‘best match’ to their requirements, while dispersed locations are most efficient for single target ‘convenience’ trips. We propose that urban space morphology and retail location patterns may have evolved to support efficient search. Finally, we argue that knowledge of distributed processes of decision taking such as that involved in search for resources and location selection on the part of resource providers, could lead to a new intellectual framework for land use planning.
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This study examines an aspect of hierarchical zoning. Hierarchical zoning, unlike mutually exclusive zoning, is uni-directional in that it protects upper-level residential uses from nonconforming, non-residential uses but not "vice versa." The result is that the lower-level zones can be a mixture of several nonconforming, incompatible uses. This unique attribute of hierarchical zoning offers a window of opportunity for choices for affordable housing at affordable locations. Using hedonic analysis, empirical evidence shows that huge price discounts (over 15%) are associated with apartments that are situated in nonconforming zones. Arguments here support more flexible zoning. Copyright American Real Estate and Urban Economics Association.
Article
This paper considers how the potential for mixing uses and redevelopment impact property value. Operating flexibility of this type is found to significantly increase property value when the correlation between payouts from different property types is low or when redevelopment costs are low. The ability to mix uses and redevelop over time is also shown to affect the timing of initial land development. The shape of the development boundary is shown to differ considerably depending on whether marginal revenue is constant or decreasing to scale. Both policy and empirical implications concerning the effects of multiple-use zoning are discussed. Copyright American Real Estate and Urban Economics Association.
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We consider the effect of land use choice on speculative land value and on development timing as reflected in the optimal “hurdle ratio” which triggers immediate development. We find that land use choice (i.e., multiple-use zoning) may add over 40% to land value under typical economic circumstances. The conditions for optimal development of the land become markedly more difficult to achieve (higher hurdle ratio required) when the two land uses have similar values. Indeed, a “rational indecision” result obtains in theory; development will never occur when the two land use choices have equal value.
Article
In a very simple model in which capital is durable and landowners have perfect foresight, the price of urban land has four additive components: the value of agricultural land rent, the cost of conversion, the value of accessibility, and the value of expected future rent increases, a growth premium. In rapidly growing cities, the growth premium may easily account for half of the average price of land and may create a large gap between the price of land at the boundary (minus conversion cost) and the value of agricultural land rent.
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This article develops an equilibrium framework for strategic option exercise games. The author focuses on a particular example: the timing of real estate development. An analysis of the equilibrium exercise policies of developers provides insights into the forces that shape market behavior. The model isolates the factors that make some markets prone to bursts of concentrated development. The model also provides an explanation for why some markets may experience building booms in the face of declining demand and property values. While such behavior is often regarded as irrational overbuilding, the model provides a rational foundation for such exercise patterns. Copyright 1996 by American Finance Association.
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