A recent report by PricewaterhouseCoopers and the Urban Land Institute identified the proliferation of mixed-use developments in high-density downtown areas, like Toronto, as a trend to watch in 2014.
The report, Emerging Trends in Real Estate 2014, used data from more than 1,000 real estate industry experts to examine themes and predictions for markets across the United States, Canada and Latin America.
Mixed-use developments specifically referred to buildings containing office space or hotels, retail stores and condominiums/residential space. The report says that “the desire of tenants to be able to live, work, and play in an urban location will drive further demand for projects that could offer residential, retail and office.”
Restrictions against development in certain regions and long commute times contribute to an increasing desire in many individuals to choose urban housing over suburban or rural life, the report states. As a result, demand for new office and residential space is on the rise, thereby propelling the mixed-use development trend.
Additional factors affecting the increase in urban residential development include:
- Government intensification policies
- Infrastructure issues
- Lack of affordable single-family housing