Some of the garden sites, for instance, aren't great retail sites. And some of the midrise sites just don't lend themselves to be really good retail sites.

A heavily traveled street is generally a good indication. We just closed on a deal in Buckhead on Peachtree Street, as an example of a great location for retail. If it's a good retail site, we'll try to do retail at the community. But we won't let retail lead the discussion to develop.

GlobeSt.com: With the fourth quarter on the horizon, have you noticed any specific regional tendencies in 2016 with regard to development?

Parrott: For us and the developers we compete with, I'd say 80% of those groups—including us—are looking for infill opportunities. In Atlanta, it's going to be inside the perimeter, although you might find some suburban-urban areas with some high density to them. But for the most part, you're going to continue to see mid- and high-rise.

We haven't seen this many in a cycle ever. In the Southeast, it's 100% of what we're doing and we have 10 deals on the board in various stages of construction. They're all mid- and high-rises, anywhere from five-story to 25-story.

I think we'll see that trend continue and we want to get closer and closer to these urban cores. I think we'll see unit sizes continue to stay relatively small compared to historical averages, and that's been positively received.

But I don't think we go much smaller in the southeast, not down to micro-units. And we're going to continue to blow out our amenities. All of our competitors are doing the same so it's kind of an arms race, which is a great benefit for our residents.

Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What's driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.

ATLANTA—Mixed-use is all the rage. But that doesn't mean it's always a good idea. Indeed, sometimes it's a downright bad idea.

GlobeSt.com caught up with Callum Parrott, executive managing director for the Southeast Region for Mill Creek Residential, the second-largest multifamily developer in the US according to the most Recent NMHC ranking, to get his insights into this reality in part two of this exclusive interview. You can still read part one: What To Expect With Southeast Cap Rates.

GlobeSt.com: Mixed-use developments seem to be growing in popularity. What are the primary factors that determine whether you will add a retail component to a new development?

Parrott: The site needs to have all the ingredients a retailer would want. If you have a great residential site but it's more of a destination site, it might not be a great retail site.

Some of the garden sites, for instance, aren't great retail sites. And some of the midrise sites just don't lend themselves to be really good retail sites.

A heavily traveled street is generally a good indication. We just closed on a deal in Buckhead on Peachtree Street, as an example of a great location for retail. If it's a good retail site, we'll try to do retail at the community. But we won't let retail lead the discussion to develop.

GlobeSt.com: With the fourth quarter on the horizon, have you noticed any specific regional tendencies in 2016 with regard to development?

Parrott: For us and the developers we compete with, I'd say 80% of those groups—including us—are looking for infill opportunities. In Atlanta, it's going to be inside the perimeter, although you might find some suburban-urban areas with some high density to them. But for the most part, you're going to continue to see mid- and high-rise.

We haven't seen this many in a cycle ever. In the Southeast, it's 100% of what we're doing and we have 10 deals on the board in various stages of construction. They're all mid- and high-rises, anywhere from five-story to 25-story.

I think we'll see that trend continue and we want to get closer and closer to these urban cores. I think we'll see unit sizes continue to stay relatively small compared to historical averages, and that's been positively received.

But I don't think we go much smaller in the southeast, not down to micro-units. And we're going to continue to blow out our amenities. All of our competitors are doing the same so it's kind of an arms race, which is a great benefit for our residents.

Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What's driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.