SAN DIEGO—Lifestyle preferences continue to shift in terms of where people live, work and shop, and these changes are fueling a continued evolution of office, multifamily and retail properties, RAF Pacifica's founder and president Adam Robinson tells GlobeSt.com. The firm has been heavily involved in developing properties with a variety of uses in the San Diego market of late. We spoke with Robinson regarding the latest design trends for mixed-use properties, the demand for these properties and what we can expect coming down the pike.
GlobeSt.com: What are the latest trends in design for mixed-use properties?
Robinson: The best mixed-use designs are redefining leisure and convenience, and integrating an experiential approach throughout. The industry has moved beyond simple apartment communities atop ground-floor retail or office. Today's mixed-use developments are self-contained mini-cities that mimic urban walkable environments. Current mixed-use developments incorporate open layouts with a variety of community spaces, retail and restaurant space, creative office, multifamily and even hospitality options. Consumers, residents and companies are seeking community-focused environments that create a sense of place, and developers who achieve this will ultimately foster increased engagement and interaction throughout their projects.
GlobeSt.com: What is demand for mixed-use like compared to traditional standalone multifamily, retail and office, and are we going to see a continued growth in demand over the next few years?
Robinson: Demand for mixed-use projects will only continue to grow over the next several years. Lifestyle preferences continue to shift in terms of where people live, work and shop, and these changes are fueling a continued evolution of office, multifamily and retail properties. In both multifamily and office, residents are demanding best-in-class amenities that incorporate on-site retail and entertainment options for a completely convenient and accessible quality of life.
GlobeSt.com: What type of mixed-use projects do you have underway?
Robinson: We currently have three mixed-use projects underway in San Diego County: lift, flight and a development surrounding the old Carlsbad Theater. We also have an acquisition underway that is set to close in early January for another mixed-use development in downtown Encinitas.
lift will be the first project of its kind in the Carlsbad market. This mixed-use creative office property features 44,797 square feet of truly unique office space and 8,496 square feet of restaurant space. Similar to the urban “mini-city” environment I just described, lift will offer a fully experiential atmosphere comprising on-site entertainment and wellness options, with ocean views and one-of-a-kind outdoor amenities.
flight is an intimate, 26,000-square-foot, luxury mixed-use development that will integrate high-end restaurant space with ground-floor retail, office and multifamily in the Solana Beach submarket of San Diego. The flight project will become a unique destination in the Solana Beach community, offering luxurious amenities and a host of entertainment features that will attract people and companies from throughout the county.
The old Carlsbad Theater is in the very early stages of redevelopment. We plan to transform this into a live event venue with co-working space, yet no design plans have been finalized yet.
GlobeSt.com: What type of amenities are residents or tenants looking for in a mixed-use development.
Robinson: Specific amenities will vary depending on each neighborhood. The best mixed-use developers integrate local flavor into their projects, ensuring that the design and amenities meet the needs of the immediate neighborhood. For example, at lift, we are incorporating rooftop community spaces with stunning ocean views, as well as wellness options and unique high-end restaurant space. These features cater to the outdoor, health-conscious, foodie and beachy lifestyle amenities that North County tenants demand. Because we are incorporating amenities that we know the local demographics can support, we will be able to attract a diverse range of tenants.
GlobeSt.com: Anything else we should know about this product type in 2018?
Robinson: From an investment perspective, mixed-use developments provide diversification and balance to a portfolio. By integrating a variety of uses and optimizing space, developers can maximize the value of their property while protecting against large vacancies, which can be challenging in single-tenant products.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
