Mixed-Use Projects Are:

When things get tough, mix it up. If it weren't so cheesy, that might be a good saying for respondents of last week's Quick Poll, 81% of which stated their belief that mixed-use projects are "More Important Than Ever," leaving only 19% who thought the projects were "Not as Practical in This Economy." Carey Levy, president of Irvine, CA-based Passco Companies Development LLC, believes mixed-use projects will have a tough time, but in the long-run, when the squeamishness in the financing markets eases, such projects will regain favor in the development community because they serve a social purpose.

I do believe that mixed-use is a very viable development option, and I think it's a much needed product type. Most of these projects are going to go into infill metropolitan areas, and most of this development is occurring in either in blighted areas, or it's a redevelopment component, a teardown, or a repositioning of properties, so that's a good thing. Mixed-use projects also give young professionals a lifestyle are seeking, they give them an option to live, and work and shop in the same environment. That's what they want today.

However, I do see that there's a stall in the process of development of mixed-use. Retail, for example, is overbuilt—in the last five years everybody's built retail, retail, retail. Now you have a housing slowdown, and that trickles into the commercial economy, so retailers are saying there will be no expansion for a while. You're seeing the anchors stopping or slowing down for a while, and some centers not being able to be built for a while.