Mixed-Use Developments

Stephanie Crossley • Nov 15, 2022

Mixed use developments: An effective land strategy that combines residential and non-residential uses

 

In today’s market vacant office spaces are scaling to first-time heights as the market for commercial office space is gradually thinning. Commercial Edge National Office Report reported the national vacancy rate closing for September of 2022 at 16.6%, with Chicago closing at 19.9%. To date Chicago’s vacancy rate sits at 15.2%, an increase from 2020’s recorded average vacancy rate of 10.77%, pushing the vacancy rate to a 10-year high. With the expectation of rising vacancy rates throughout the remainder of 2022 and beyond, vacant buildings need a new purpose and developers are moving their attention to existing vacant structures in prime real estate locations. Rather than razing old structures and constructing new, adaptive reuse takes a more sustainable approach to development by renovating structures that already exists and effectively building onto those assets, on occasion saving what could be considered historical landmarks.

 

Adaptive reuse has become an effective approach for optimizing the commercial and operational performance of vacant buildings. Adaptive reuse promotes a valuable strategy for revitalizing urban areas by creating mixed-use developments, one of the more common types of urban renewal projects. Mixed-use projects revitalize former commercial office spaces and transforms them into retail locations with luxury apartments, in addition to providing accommodations to a myriad of cultural and social amenities. Mixed-use developments attract those interested in downtown living by promoting: (i) convenience of movement through the creation of walkable communities; (ii) support for remote employees, through accessible nearby services and amenities; (iii) safety through reduction in auto use and the continuous presence of people; and (iv) a variety of housing choices, providing a solution for housing shortage and empty downtowns.

 

One of the biggest benefits of mixed-use development is the increase in property tax revenue. The density of a community provides the opportunity to extract more value per acre of land than with traditional development. Along with increased tax revenue and increased economic vitality, mixed-use developments often have lower infrastructure cost which in turn stimulates budget cost savings, affording the ongoing costs for municipalities – like police, fire and trash collection – to be as much as 10%lower with mixed-use development due to shorter travel distances.

 

Mixed-use developments through adaptive reuse are transforming buildings all over the country, and with those transformations also comes challenges including zoning restrictions, conflicts in proposed uses, and other land use issues. Shapiro and Associates Law has experience and knowledge to assist with these posing challenges. For more information, please contact us at info@shapiroassociateslaw.com .

 

Bills to Watch in the 103rd Illinois General Assembly

By Dan Shapiro • 18 Apr, 2024
HB 3306, HB 2099 and The Corporate Transparency Act

Shapiro & Associates Law Highlights of 2023

By Dan Shapiro • 21 Mar, 2024
Client Success

Navigating the Horizon

By Dan Shapiro • 11 Jan, 2024
A Glimpse into the 2024 Commercial Real Estate

Commercial and Residential Property Tax Review

By Dan Shapiro • 09 Nov, 2023
Planning for your Property's Financial Future, by Jamie Baer

Vacant Office Space Alternatives

By Dan Shapiro • 17 Aug, 2023
Commercial Real Estate Conversion Options

Current Developments Regarding Recently Proposed Illinois TIF Legislation

By Dan Shapiro • 28 Mar, 2023
Tax Increment Financing Updates

New Laws for Business Owners: What You Need to Know

By Dan Shapiro • 21 Mar, 2023
Changes that Illinois Businesses Should be Aware of

The 2023 Federal Spending Legislation and its Impact on Affordable Housing

By Stephanie Crossley • 29 Dec, 2022
The $85 million “Yes In My Backyard” Program

185 New Dispensaries Are On Their Way

By Dan Shapiro • 16 Jun, 2022
The Illinois Department of Financial and Professional Regulation (IDFPR) recently announced the next steps to issue 185 Conditional Adult Use Cannabis Dispensing Organization Licenses to applicants selected in three lotteries in 2021. The Conditional Licenses will be issued to applicants selected in the 2021 lotteries in three waves: Wave 1, on or before July 22, 2022. Naperville-Chicago-Elgin BLS Region. Wave 2, on or before August 5, 2022. Other BLS Regions with multiple licenses available. Wave 3, on or before August 19, 2022. BLS Regions with a single license available. Next Steps Principal officers must submit a Principal Officer Affirmation form no later than July 1, 2022. The IDFPR will then verify all principal officers are not delinquent in taxes or owe money to the State of Illinois and notify any applicant if a principal officer is not tax compliant. The applicant will then have 60 days after notification to prove tax compliance. Any applicant with a principal officer who is not tax compliant after the 60-day period shall forfeit their awarded license, which will then be offered to the next eligible applicant. The IDFPR will also verify that no principal officers have a financial interest in more than 10 Adult Use Cannabis Dispensary licenses. Any applicant with a principal officer who may become a principal officer in any combination of more than 10 Early Approval Adult Use Dispensing Organization Licenses, Conditional Adult Use Dispensing Organization Licenses, and Adult Use Dispensing Organization Licenses will forfeit any license they are awarded. After IDFPR issues the Conditional Licenses, it will conduct background checks of principal officers. Importantly, after receiving a Conditional License, the Conditional Licensees will have 180 days to select a physical storefront location and obtain the full Adult Use Dispensing Organization License (the full list of criteria to be met may be found here ). If a Conditional Licensee is unable to find a suitable physical location within the 180-day period, they may request an extension of 180 days.

TEAM EFFORT ACHIEVES SUCCESSFUL CLIENT OBJECTIVES

By Dan Shapiro • 10 May, 2022
OUR TEAM ASSISTED CLIENT WITH ACQUIRING, ZONING AND OBTAINING TAX CREDITS FOR NEW WAREHOUSE AND DISTRIBUTION FACILITY
Show More
Share by: