On the Horizon
One primary example we’re seeing more frequently is the continued growth of experiential theater venues. These spaces are often inserted into buildings formerly (or currently) occupied by financial institutions, factories, warehouses, and retail spaces. Experiential entertainment such as theater company Punchdrunk’s Sleep No More in West Chelsea demonstrates the adaptability of nearly any space, as six floors of a former warehouse were transformed into a pseudo-hotel for the purposes of the show. These developments aren’t about cramming multiple businesses into the same physical location, but rather identifying, building upon, and optimizing the synergies between separate uses, thereby changing people’s relationship with and perception of the space itself.
This diversification of uses greatly benefits end-users, but also provides greater incentives for executives to more fully consider mixed-use buildings as a viable revenue stream. As opposed to hanging your project on a singular market demand, as is often the case with single-use builds, the implementation of various uses within the same location allows for assorted streams of revenue. In instances like the pandemic, where demand within an industry might have dropped dramatically (for instance, a hospitality business), the other avenues can provide the necessary profit to maintain operations and secure a portion of the revenue otherwise being lost. The conversion of the iconic Plaza Hotel serves as a testament to the ability to incorporate multiple uses, in this case both residential and hospitality, to create additional income streams from an existing historical structure. All of that considered, it’s no surprise that we’ll see more conversions of this type for years to come.
Another reason that mixed-use development is on the rise relates to its merits in the area of sustainability. The building sector itself is responsible for nearly 40 percent of annual global carbon emissions, with 11 percent of this tied directly to embodied carbon within building materials and subsequent construction. Adaptive reuse of existing buildings is the most sustainable form of construction at present, and provides serious cost benefits when examined from a development perspective. As we work to minimize emissions, we will continue to turn to the conversion of existing spaces as opposed to new-build construction. These conversions are better equipped to handle the implementation of multiple uses, and there is added value as it relates both to applications and environmental considerations.
The trend of mixed-use buildings, while already headed upward, is experiencing a meteoric rise in popularity. This is due in part to the pandemic, but as is the case with many things, COVID-19 simply accelerated a shift that was already set in motion. The future of urban centers and spaces is inherently mixed-use, as population density inevitably increases and real estate prices continue to soar; mixed-use development is not only the economical choice for developers, but is also one of the best case scenarios for end-users as it prioritizes practicality and sustainability. As the world becomes ever more uncertain, one thing is clear—the future of development is mixed-use, and the medium through which we will make these spaces a reality is through the adaptive reuse of existing structures. Beneficial for not only executives and users, but also for the environment, mixed-use development urges us to look towards the future to find flexible solutions that accommodate our new reality.
