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Mixed-use developments are projects that integrate different uses within a single property and/or land. A mixed-use building can offer residential and office units in the same complex. Some offer hotel units as well. Usually, these projects feature a considerable retail area, with stores, restaurants and many other services that allow people to live, work, shop and play in one single place or within walking distance. In the past few years, the mixed-use trend became very strong in the Miami Real Estate market. The pandemic, however, brought some issues regarding the future of Mixed-use projects. Will they provide the safe and healthy environment people need? The answer is “Yes, and they could even turn into a great solution for pandemic times”.
The impact of covid in Mixed-Use developments
Before the Covid-19 pandemic the Real Estate market was living the concept of “Sharing”, like many other industries. The main idea was to create more open spaces and put people together. Everybody wanted to interact and socialize.
In Miami, most luxury new constructions were designed to feature amenities to stimulate that interaction among residents. The first mixed-use complexes that were launched in Miami sold very fast. It didn’t take long for more and more developers to start building new mixed-use buildings.
Suddenly, Covid-19 hit the market. “Sharing” is no longer the subject. “Isolation” is the new word.
All those new amenities and modern spaces designed to stimulate interaction started to be questioned. People started to run away from congested urban centers. The demand for large single-family homes in suburban areas had a sudden increase. At the same time, luxury condos in the city lost their appeal.
Will our day-to-day ever be the same? That is not an easy question to answer. Some people say things are going back the way they were before pandemic. Others say we will live a “new normal”. The truth is that the world is already different! And developers are very aware of that!
At the beginning of the pandemic it was clear for many people that mixed-use projects could no longer be a product to offer, at least in the near future. But after a few pandemic months, developers realized they could adapt their ongoing projects, adjusting the spaces and bringing solutions, with the help of technology. The concept of “mixing” evolved to contemplate social distancing and safe interaction. Ample outdoor spaces and touchless elevators and doors are some of the new ideas for the “new normal”. Paramount Miami, located at mixed-use complex Miami Worldcenter, purchased a COVID-Killing UV Ray Robot to disinfect common areas. A lot still has to be done regarding air conditioning systems. For sure, things will evolve for a better and safer environment.
Mixed-use projects could also play an important role in pandemic times since it can prevent people from leaving their buildings. Once you have all you need (or almost) inside your condo or complex, there is no need to take the car or public transport to go to other locations in town. This can lead to fewer crowding situations and help to prevent the virus from spreading to other neighborhoods.
Mixed-use projects could also offer hospitals or health clinics to its residents. Miami Worldcenter already brought the idea. The complex plans to invest about $ 60 million in a health center available to residents and hotel guests, as part of Legacy Hotel & Residences. Legacy is one of the projects within the complex and one of the few in the city that allows short-term rental.
Although there is a large public nowadays aiming for single-family homes in less congested areas, the trend could change in the near future. Since the demand decreased for condos in the cities, prices went down and inventory up. Today we experience a very strong Buyer’s market for luxury condos in Miami. For sure there are many opportunities in that segment. At the same time prices are rising for single-family homes and inventory is historically low. It won’t take long for people to start shifting.
About AMG International Realty
AMG International Realty is a full-service brokerage firm in Florida. If you are interested in buying, renting or selling Real Estate in Florida, please give us a call: +1 (305) 318 6968 (Heloisa Arazi).