Mixing It Up
Headlines continue to flash yellow, cautioning real estate investors on the perils of investing in both mature and emerging markets. Certainly, the risk-averse attitude that is prevalent among lenders and investors poses a stark contrast to the heady days of 2006 and 2007. This attitude, not to mention a dearth of capital, is particularly troublesome for the development community. Despite the precarious health of banks and a forecast for continued economic contraction across Europe, however, many mixed-use schemes have retained their appeal and appear to be moving ahead.
Mixed-use developments are still very much relevant today, confirms Katie Kopec, lead director of Jones Lang LaSalle’s development and asset strategy team. She thinks mixed-use has advantages over single-asset-type projects, and thus has a greater likelihoo