Mixed-use Report

1. mixed-use multipurpose developments in Poland and abroad

2. 3 2 Tomasz Bojęć Przemysław Chimczak-Bratkowski Artur Celiński Agata Kaczkowska Julia Kowalska Dominik Różewicz Marceli Tomczyk strategic partners: mixed-use www.thinkco.pl multipurpose developments in Poland and abroad

3. flagship projects from around the world the evolution of mixed use in poland market size in poland potential for intersectoral collaboration outlooks for growth opportunities and threats written in partnership with notes about us contents what does mixed-use mean? socio-economic contexts evolution of urban design thinking urban contexts social aspects in mixed-use projects characteristics of mixed-use developments mixed-use, meaning what? characteristics of mixed-use developments key aspects of mixed-use developments 8 12 64 84 116 123 124 126 36 14 86 110 118 22 28 38 44 56

4. 7 6 Multipurpose properties count among the most interesting recent developments in Poland’s real estate market. Integrating several functions within a single area brings a number of social and economic benefits and opportunities, the most important of which is the ability to optimize space use to ensure maximum end-user benefit. A mixed-use neighborhood never sleeps: during work hours, its infrastructure serves office workers; later in the day, it caters to the needs of residents. Additional upsides include time savings, less inner-city travel and, consequently, fewer cars per family, and countering suburbanization. In light of this, it is important to ask why multipurpose properties are a novelty rather than a staple of Polish urban planning. While the sector is gaining considerable momentum, it is still in its infancy in Poland. Early designs espousing mixed-use development principles may have appeared well over twenty years ago, but we are only now witnessing the evolution from redevelopment of postindustrial areas to large-scale projects designed with mixed-use applica- tions from the very beginning. The reasons for this situation are manifold. Some considerations are historical, as we learned to rely on single-purpose zoning and old habits tend to be much stronger than modern, superior solutions. Other considerations are administrative, as Polish government officials rarely make things easier. The biggest roadblocks, however, are of an organizational nature—the com- plexity of mixed-use investments calls for a wide range of competences that must be integrated already in the planning stages, competencies that very few investors currently have. Hence our decision to compile the most comprehensive report on mixed-use developments in Poland. To achieve that goal, we performed functional analyses of over a hundred projects from all over the globe. We sought to identify the general principles that drive mixed-use investments, as well as their particular characteristics, including their architecture, the process of their development, and the practices used in their management. Additionally, we ran a detailed architectural and urban planning analysis on a few dozen of the selected projects, including all those located in Po- land. A product of these efforts, this report not only summarizes the figures pertaining to mixed-use developments around the world but offers guidelines for building properties like these going forward. Tomasz Bojęć and Przemysław Chimczak-Bratkowski Managing Partners ThinkCo – real estate research lab introduction source: Joris visser, Unsplash mixed-use | introduction

5. 9 8 what does mixed-use mean? 1Over the past couple of years, terms like “multipurpose properties,” “mixed-use projects,” “hybrid developments” have often been used to describe an increasingly popular type of real estate investment. While we can intuitively infer what the terms imply, we have yet to see a single, widely accepted definition of what mixed-use actually is. Due to the complex nature of hybrid properties, the criteria used in their description are informed primarily by the position of the observer—interpretations differ between architects, urban planners, real-estate developers, and public officials. This report compiles data from our in- house analyses of over 100 mixed-use projects and aggregates insights sourced from available business and academic inquiries into the subject. Basing on the facts and figures we managed to put together, we drafted a few cardinal categories to use in our description of mixed- use investments. location Although the majority of flagship mixed- use developments in Poland were built either in downtown locations or in urban areas, multipurpose complexes can be situated wherever there is—or there can be—enough social capital to provide the necessary energy and enthusiasm. Regardless of location, mixed-use projects strive for optimal integration with their environment and streamlined communication with the rest of the city. Depending on their distance from the city center, we can identify three types of locations where mixed-use development can occur: CITY CENTERS Given the density of residential and commercial developments, as well as the bre- adth of activities they offer, city centers seem the ideal location for mixed-use projects. Downtown investments tend to be smaller in scale and seek to maximize the use of available space (or revitalize existing developments). The scope of potential land use is narrowed and reoriented to functionally complement the surrounding urban environment above all else. INNER-CITY AREAS The largest lots available in these types of locations are usually postindustrial, which might explain the specifically Po- lish tendency toward redeveloping former industrial districts. Investments in these areas are usually medium in scale and based around a minimum of two essential uses. As they play an important role in the revitalization of neglected inner-city districts and, they often aspire to become new local centers. SUBURBAN AREAS Plans are already being drafted for the first large-scale projects intended for undeveloped or greenfield sites, many of which are sitting on or past the urban fringe. They will have to necessarily adopt a broad mix of land uses to kickstart cityforming processes and facilitate the integration of the emerging communities. scale Mixed-use projects may take up anywhere from individual lots to large, sprawling tracts of land. Most of these developments, however, fall into one of the three dominant size categories: SMALL Smaller-scale projects (occupying less than 1.5 hectares or approx. 2.5 acres) usually located in downtown districts. The majority comprise either individual hybrid buildings or small complexes with anywhere between two and four components, and lack well-developed common spaces between project components. Due to area constraints, they are the least diverse in terms of function, usually com- bining either commercial and office or residential and food service uses. MEDIUM Large hybrid buildings, mostly high-rises, and projects comprising a couple or over a dozen buildings, linked by public spaces and making up a cohesive urban complex. source: Max Böttinger,Unsplash definition Mixed-use projects entail planned integration of several different uses, all of which are vital to the development and mutually supporting.5 The term can apply to individual structures, complexes, or even entire neighborhoods. The site must integrate at least two functions essential to the needs of independent end-user groups. Institutionally planned, financed, and managed, mixed-use developments maximize space usage and present a consistent spatial and architectural picture.6 Professional management enables effective communication and helps with brand building. source: Dimitry Anikin, Unsplash

6. 11 10 They can be somewhat isolated from their surroundings or serve as an extension of the local street grid. Projects like these usually aim to foster synergy between residential and commercial uses, but their typ- ical use mix is rather diverse. The category includes most of the existing mixed-use developments in Poland, as well as most of those currently under construction. LARGE Larger-scale projects (occupying over 6 hectares or approx. 15 acres), boasting their own street grids and considerable spatial, architectural, and functional diversity, organized by an integrated urban planning scheme. Given their size, they are of particular interest to city authorities. They are often built either by local governments or under masterplans they drew up. Many are large enough to not just complement, but redefine the surrounding urban fabric, providing the necessary context for subsequent redevelopment efforts of nearby areas. uses Concocting an effective use mix is key, while the multi-staged nature of major investments necessitates the prioritization of elements considered essential to the planned development’s social and economic success. Components built during the project’s initial stages ought to help secure financing for subsequent stages and contribute added value from the very outset to foster the intended image of the complex.1 In the body of literature on mixed-use investments, a handful of basic terms are used to describe particular uses: CORNERSTONE USE Drives the majority of the investment’s revenues.2 Usually defined first, with subsequent uses selected for maximum compatibility. In the vast majority of cases, either residential, office, or commercial use fulfills that role. In individual projects, this role is played by two equal functions. DOMINANT USE Takes up the greatest amount of space within the development. While the dominant use does not necessarily have to be one of the cornerstone uses, it must be financially strong regardless of the rest of the project.3 Again, residential, office, and commercial functions are the most common dominant uses. ANCILLARY USE Can add considerable value to the project but cannot guarantee its financial success; consequently, they adjust to and accommodate cornerstone uses. As they are not essential, their popularity grows along with the size of the development. Ancillary uses include hotel, cultural, recreational, educational, and other uses. ATTRACTORS Elements capable of generating additional patron influx, usually associated with commercial uses: retail spaces, market areas, entertainment, and food establishments. Foot traffic can also be generated by well-designed public spaces, green areas, and events that do not necessarily have to generate direct revenues. source: Luca Bravo VERTICAL a single hybrid building, usually a high-rise. HORIZONTAL a couple of buildings, with each one dedicated to a single use. MIXED a complex of diverse, mono- and multifunctional buildings Compiled by ThinkCo, 2021 PORTA NUOVA, MILAN A masterplan for Milan’s postindustrial neighborhood turned a run-down area into one of the most important places on the city map. Porta Nuova is now a multifunctional district with numerous high-rise buildings, modern public spaces and extensive green areas. VARIANTS OF MIXING USES IN SPACE use configuration The specific arrangement of uses in space within a development is bound by few constraints—individual buildings can be either dedicated to a single use or configured to house a particular combination of functions. There are three basic types of use mix:4 source: Christopher Burns, Unsplash mixed-use | what does mixed-use mean?

7. socio-economic contexts

8. 15 14 evolution of urban design thinking 2 Mixed-use developments are neither a novelty nor a recent innovation. They are more of a throwback, reinvigorated with a more contemporary understanding of how cities function and how land use affects quality of life, work, and business. Given the advantages mixed-use projects offer, they are currently considered essential to any effort aiming to reverse the over one-hundred-year-long drift toward homogenous and dispersed cities. In Triumph of the City, Edward Glaeser called the city the greatest of our species’ inventions.7 Initially, cities came about as a way of reducing the distance between the point of manufacture and the point of sale. The subsequent drop in transportation costs opened humanity up to urban innovation—the pursuit of a new, more effective city, which would not only drive the economy, but also unleash the full potential of its residents. the hygienic city The early twentieth century brought the advent of zoning, that is the segregation of city land into distinct uses. At the time, the separation of industrial, commercial, residential, and recreational uses was believed to be a key tenet of modern urban planning. This shift unfolded against the chaos, incongruity, and disarray that characterized contemporary urban landscapes. The proximity that propelled them was increasingly awkward, and the cities themselves grew darker, more cramped, and more disordered. Nine- teenth-century Polish literature painted a similar picture, contrasting the idyllic rural landscapes, dappled with manors and country residences, with the gloom of the city, the backdrop for its residents’ misery and tragedy. Following Le Corbusier’s dictum of “Where order reigns, well-being follows,” we might argue that it was modernity, manifested here in the form of land zoning, that first suggested we begin ordering our cities.8 The theoretical basis for this orderly future was provided by the Athens Charter, a 1933 document by Le Corbusier in which he outlined modern urban planning principles. It was the Charter that brought sunlight, greenery, and open spaces to the city.9 It also inverted the proportion of private and public spaces. At the time, cities offered little in the way of attractive public spaces, which themselves were considered purely ornamental. Private- ly-owned buildings, meanwhile, were surrounded by private spaces. The Athens Charter returned space, perspective, light, and air to the public sphere. In its pursuit of these key resources, the Charter suggested defining function-based zones in separate areas of the city, to be used for living, working, recreation, and circulation. Modernism and zoning laid the theoretical groundwork for the concept of the ideal city, which was itself perfectly encapsulated by Futurama, a model city made by Normal Bel Geddes for the 1939 New York World’s Fair. Covering 3,300 square meters, the model showcased a vision of the future city—with the separation of its residential, commercial, and industrial zones portrayed as one of its mainstays. The zones were linked with broad streets and highways, promising comfortable car travel.10 The cities built according to these principles were indeed incredibly attractive—at least initially. As the years passed, however, the downsides of rigid planning became all too apparent. The separation of function-based zones forced residents to take ever-longer journeys throughout the day and bound them to cars. As the appeal faded, residents began looking for happiness out in the suburbs. Business soon followed. Rigid zoning regulations, meanwhile, led to uncontrollable sprawl and fragmentation. the adverse consequences of zoning Léon Krier, the world-famous urban planner and architectural theorist, noted that while the first imperative of zoning is to organize land in a way that allows the performance of only one function in one place at one time, the second is the “daily mobilization of the whole of society (…) in accomplishing simple daily tasks.” Krier also argued that it was this separation of land uses that ultimately “made modern life extremely complex and wasteful in terms of transportation time. The most remarkable consequence of functional zoning is that it guarantees the maximum consumption of units of time, energy, hardware, and land for the execution of the daily functions of the whole of society.”11 Today, the efforts to diversify undertak- en by many monofunctional spaces are nothing short of a fight for survival—a struggle exemplified by many mid-sized American towns. In their case, reliance PLAN VOISIN By Le Corbusier, 1922–1925 FUTURAMA, A MODEL OF THE FUTURE CITY, 1939 Source: Flickr If we want cities to return to their former compact form, we need to encourage land use mixing and smart density management efforts.

9. 17 16 on zoning resulted in mass flight from core districts and the shift of urban life toward the suburbs. And because dispersed cities are much more expensive than their compact counterparts, the former often have little in the way of funding required to reverse the situation, even if urban innovativeness were to come up with some way to perform such a reversal. Hence, if our task was to return the city to its former, compact form, we ought to encourage land use mixing and smart density management efforts. In Happy City, Charles Montgomery argues that “true repair addresses the systemic problems of sprawl.” In his view, mixing retail, services, and public spaces with housing allows residents to experience the city as walkable. “It creates a critical mass of demand for transit, and comfortable places to wait for it. It links streets to surrounding networks, making walking easier and extending tendrils of easier living, good health, sociability, and connectivity.” 12 Montgomery also describes a real-life example of such repair, involving a shift from traditional zoning to land use mixing. In the American city of Asheville, North Carolina, the authorities introduced an investment program aimed at revitalizing the downtown district and defined an area where mixing different land uses would be permitted. Officials were persuaded to go through with the plan by a report published by an organization called Public Interest Projects—the owners of a renovated, six-story mixed-use building in downtown Asheville. The report indicated that mixed-use developments were capable of producing as much as thirteen times the tax revenue and twelve times the jobs per acre than the Walmart sitting on the edge of the city. 13 New Urbanism Krier also pointed out that this new thinking was predicated upon the need to provide high quality of life, one worth living, and to create places that enrich, fortify, and inspire the human spirit.14 Such an outcome would not be possible, however, without a range of architectural and urban planning solutions, all of which reject function-based zoning in favor of embracing human-scale thinking, diversity, and communality. Most of these ideas are rooted in ob- servations made by Jane Jacobs in her 1961 book The Death and Life of Great American Cities. In her view, furnishing dwellers with that compelling life and neighborly activity on the streets is contingent entirely upon the ability of cities to offer an intricate, close-grained diversity of uses, consistently supporting and supplementing each other, economically and socially.15 VISION OF POUNDBURY source: Leon Krier, poundbury.co.uk compiled by ThinkCo from Harold Carter, The Study of Urban Geography (London: Arnold), 1995. Multipurpose projects are much more flexible and robust, capable of weathering much turmoil, like the recent COVID-19 pandemic for one example. They are also, by their very nature, much more open to a broader cross-section of society. Thankfully, we are moving away from developments turned inward, facing away from the city and its people, isolated from the context of their very location. Driven by the idea of creation unique and people-friendly places, mixed-use is definitely the future, one that we finally find ourselves embracing. Our design and planning efforts are increasingly informed by the 15-minute city concept, which stipulates that residents ought to be able to meet their basic and immediate needs within fifteen minutes from home. While multipurpose projects definitely involve more planning, greater financial outlays, and resources needed to design an offer that would meet the varied needs of future user groups, I believe that the effort will pay for itself may times over. Today, the success of a development is measured not only by incomes from rent, but more increasingly by the life that it is capable of sustaining. As investors, we should feel a sense of responsibility for our developments, so that they serve people first and foremost, but without doing harm to the environment, the local history, and the neighbors. Kinga Nowakowska Board Member, Operations Director at Capital Park Group THE SECTOR MODEL OF URBAN LAND USE That particular impulse echoed beyond city government circles, eventually reach- ing real estate developers, who saw it as a sign of a coming market change and a shift in the customer expectation landscape. As customers began to demand a wholly new kind of city,16 it seemed that CBD (Central Business District) Zone of Transition Residential (lower class) Residential (middle class) Residential (upper class) Industry mixed-use | evolution of urban design thinking

10. 18 commercial residential industrial green space Functional Zoning - a zone for each type of land use - land use zones subject to different regulations downtown uptown east side historical district manufacturing district high density average density low density no development incentives no incentives THE 15-MINUTE NEIGHBORHOO D well connected to publi c transport, jobs and services within the regio n local public transport walkability housing diversity ability to age in place safe streets and spaces sport and recreation facilities community gardens green streets and spaces local playgrounds and parks lifelong learnin g opportunities local schools local health facilities local shopping centers safe cycling network local employment opportunities TYPES OF LAND USE ZONING vibrant, diverse, and walkable communities were the perfect answer. Design standards for places like that were first defined by the concept of New Urbanism, exemplified by the American town of Seaside or Poundbury in the UK. The feasibility of this particular design paradigm, meanwhile, was confirmed by the financial performance of developments built according to its precepts. One testament to Poundbury’s success can be found in the rise of the value of its properties. The apartments and homes in the development have been consistently priced at around 30% above similar properties in the area, with per-square-meter prices sitting well above the UK average as well.17 Developments like these have also shown themselves capable of drawing higher valuations in traditional cities, too. Charles Montgomery reported that in Washington, D.C., the most expensive properties in 2000 could be found in suburban districts, with prices anywhere between 25–50% higher than those of their counterparts in downtown neighborhoods.18 But barely a decade later, the situation had reversed—the prices for downtown properties shot up, with proximity to more diverse walkable spaces that did not require a car being the primary value driver. cities for everyone Americans quickly began to investigate what the correlation was between walkability, conceived as a measure of how friendly and ecologically sustainable a given area is, and property prices on the local real estate market. A report compiled by the real estate brokerage RedFin has shown that a single-point Walk Score (a measure of a given area’s walkability) increase can drive transaction prices up by as much as 0.9%.19 A similar effect was also observed in commercial property sales. Christopher Leinberger, with the Center for Real Estate and Urban Analy- sis at the George Washington University, argues that tenants have shown themselves willing to pay more for the ability to work in well-designed, people-friendly spaces—in some cases, the prices went up by as much as half.20 Much of the thinking about the future of the city has been moving in this direc- tion, as exemplified by the concept of the 15-minute city. According to its precepts, the city ought to offer all necessary functions and services within a fifteen-minute walk or bike ride.21 The future city must be closer to its people than ever before, and this proximity calls for a much more complex land-use mix. Some of the bold- er voices have been calling for greater flexibility and use mixing not just within single developments, but even within shared premises. For example: one building could be used as a school in the morning, a workplace at night, and a ven- ue for cultural events on the weekend. Plenty of evidence seems to suggest that cities offering a mix of uses within a fixed area are a boon to both the wellbeing of their residents and the robustness of the real estate investment market. The inter- ests of these two groups might coincide, but only insofar as the use mix is imple- mented in an appropriate and sustainable manner. Because of that, major developments ought to necessarily adopt a more long-term perspective, with timelines as long as twenty years.22 Viewed through such a lens, mixed-use developments appear to be one of the most responsible, safe, and profitable real estate ventures. According to Jane Jacobs, enabling neighborhood activity in the streets is possible thanks to the close and dense combination of various functions. Compiled by ThinkCo, based on: The Geography of Transport Systems, https://bit.ly/3bi64zs (accessed: May 11, 2021) Compiled by ThinkCo, based on: Victoria State Government, Plan Melbourne 2017– 2050, https://bit.ly/39MjSQW (accessed: January 20, 2021).

11. source: Research QUT source: Sherzod Max, Unsplash 21 20 what makes a good urban environment according to Jane Jacobs23 Although she was neither an urban planner nor an architect, Jane Jacobs had nevertheless made seminal con- tributions to contemporary urban design. The postulates Jacobs for- mulated in her books were rooted in careful observation of urban environments and a profound interest in the mechanisms that underpin well-functioning neighborly communities. The somewhat anecdotal character of many of her theories, however, makes them easy to cri- tique and dismiss. Still, many of her arguments continue to ring true, despite having been published nearly sixty years ago. In The Death and Life of Great Amer- ican Cities, Jacobs identified four conditions that an urban environment must meet to be considered well-functioning, safe, and exuberant. MIXED USES Larger neighborhoods and districts must serve more than one primary function and the more diverse the use mix, the better. Different elements attract different users at different times of day schedules. Persistent presence of people on the streets improves safety and allows for a more effective use of public spaces and infrastructure. Additionally, a diverse function mix may also act as a buffer when one of the functions becomes compromised. SMALL BLOCKS Large blocks, impossible to cut through on foot, ought to be avoided. Smaller blocks produce a denser network of streets and pedestrian shortcuts, offering a range of benefits, including more ground-floor locations available from the street, which Jacobs believes translates into more opportunities for retail and services. Moreover, plenty of opportunities to turn corners means a richer experience of the city itself, and easier detours. Additional intersections also double as traffic-calming measures. AGED BUILDINGS Diverse urban surroundings ought to include buildings of different ages, conditions, and appearance. From a socioeconomic standpoint, such an approach eliminates opportunities for rapid gentrification and offers a measure of continuity to local businesses. Jacobs also believes that the mingling of residents and professionals hailing from different social classes prevents communities from becoming homogeneous. Conse- quently, new buildings, and the social changes following in their wake, should be introduced into neighborhoods in a gradual manner. APPROPRIATE DENSITY Good urban environments require appropriate densities of buildings and functions, which, in turn, translate into con- centrations of people and their activities, making for thriving, exuberant spaces between individual buildings. Obversely, large-scale and single-use developments tend to produce adverse effects, as their users have limited opportunities to take advantage of the urban fabric or form dynamic communities.

12. 23 22 urban contexts 3 By design, mixed-use investments are based on good planning and management practices. Dense, diverse, and pedestrian-friendly spaces encourage activity and interaction, and, consequently, tend to naturally become local centers. Hence their frequent use in revitalization programs—situating a mixed-use development in a run-down but favorably located district may prompt social and economic renewal of the entire neighborhood. Each significant change, however, has the potential to bring adverse consequences in its wake. That applies to revitalization programs predicated upon mixed-use projects, too. Combined with a lack of necessary legal and policy instruments, skyrocketing property prices may lead to unwelcome outcomes, including gentrification. In its final stages, gentrification entails the displacement of extant communities, along with their attendant businesses and activities, prompted by the influx of new, affluent residents. Furthermore, developments that are poorly integrated with their surroundings run the risk of becoming homogenous islands, isolated from the social fabric of the city. Avoiding these adverse effects is possible with comprehensive planning and adopting socially-sustainable management practices for mixed-use developments. new local centers Mixed-use developments often enjoy the enthusiastic support of city authorities because of the positive energy they bring to the city. Dense, diverse districts bring residents closer to their workplaces and enable the creation of stimulating, vibrant spaces—attractive, economically active, and safe.24 This type of high mixed-use density offers the perfect conditions for the emergence of local centers, currently the focus of active support across most of Europe’s largest cities. Although we usually associate large- scale mixed-use projects with the United States, following decades of intense suburbanization of the largest Polish metropolitan centers, a pressing need has emerged to help suburban settlements define their downtown districts, as few of them have ever had any experience with spaces like these. Another avenue involves harnessing the potential of districts that are already extant but underdeveloped in terms of services. Smart density management for districts located farther from the city center, along with existing social and urban infrastructure, now allows us to establish new local centers relatively quickly. And developments like these often prove themselves a boon for all stakeholders—the investors receive access to a large group of residents, while the community receives a space offering a broad range of services located close to home. shades of revitalization Mixed-use projects also play a key role in the redevelopment and revitalization of degraded and problematic land, a crucial effort for many local governments and investors. For the former, it’s an opportunity to breathe new life into rundown areas of the city, boost economic activity, and revamp the image of entire neighborhoods. Introducing mixed-use projects into local plans promotes land-use diversification, creation of new services, influx of new residents, and extends the residents’ activity window.25 For investors, meanwhile, mixed-use projects provide the opportunity to build in attractive locations boasting a distinctive character, and in the proximity of potential end-users. The lower the availability of attractive lots, the greater the interest in revitalizing degraded land. Given the character of many successful commercial projects, revitalization is often conceived in Poland solely as the restoration and refurbishment of historic buildings, almost exclusively postindustrial. In reality, the social aspect of a given location is much more important to the process of revitalization than its cultural and historical value. According to the leg- islative definition published in 2015, revitalization is “the comprehensive recovery of degraded land by way of integrated efforts designed to benefit the local community, the local neighborhood, and the local economy, concentrated within a specific area and carried out by stakeholders of the revitalization process.”26 While revitalization efforts may be initiated by local authorities, their economic success depends primarily on long-term engagement and the involvement of private capital. If the ratio of public to private investment in a given area is 1:5 after a decade of revitalization efforts, the area can be considered no longer in crisis and capable of sustaining itself.27 In Poland, meanwhile, the majority of redevelop- Browary Warszawskie, Echo Investment source: Benoit Debaix, Unsplash Mixed-use projects play a key role in the redevelopment and revitalization of degraded and problematic land, a crucial effort for many local governments and investors.

13. 25 24 ment efforts are launched by real estate developers, which brings its own set of challenges. In this case, it is crucial to establish effective communication between the investor and public officials in order to ensure that the project meets specific economic and social requirements. historical value Projects developed on sites with historical significance, especially in postindustrial areas, can choose from a variety of strategies for preserving the historical essence of the sites, tailored to different requirements of the historic preservation authorities, as well as the differences between the original and final site plan, and the value of individual buildings. Regardless of the degree to which these revitalization projects decide to utilize their original layouts, emphasis is put on showcasing the preserved elements of the site. The value of the site’s historical essence is far from unimportant to mixed-use projects, as historical buildings can eas- ily become local landmarks carrying the unique identity of the site. By helping establish a sense of belonging and a con- duit to the past, these buildings define the image for many a mixed-use complex. Additionally, fully harnessing the potential of historic buildings translates to a sort of closed identity economy, particularly important to local communities and crucial from the perspective of the economic success of the project and the continuous evolution from the city.28 As a result, Poland boasts a number of redevelopments that have already found considerable acclaim at home and abroad. Just last year, the Monopolis in Łódź won an award for best mixed-use development in the world at the prestigious 2020 MIPIM Awards competition. Other celebrated mixed-use projects in Poland include Stary Browar in Poznań, Manufaktura in Łódź, as well as Browary Wrocławskie, Hala Koszyki, Elektrownia Powiśle, Browary Warszawskie, and Centrum Praskie Koneser. threat of gentrification City governments usually are interested in mixed-use developments for social, environmental, and public image reasons. In terms of policy, they are particularly concerned with areas considered in ur- gent need of redevelopment. In some areas of London, the authorities have been abandoning the notion of protecting local jobs in favor of actively promoting the redevelopment of industrial districts into multi-purpose mixed-use neighbor- Compiled by ThinkCo, 2021 S O C I A B I L I T Y USES & AC TIVITIES AC C ES & LINKAG ES di ve rs e s t e w a r d s h i p c o o p e r a t i v e n e i g h b o r l y pride friendly interactive welcoming s o c i a l n e t w o r k s volunteerism evening use street live n u m b e r o f w o m e n , c h il d r e m & e ld e r ly C O M FO RT & IM AG E safe clean ”green” w alkable s i t t a b l e s p i r i t u a l c h a r m i n g a t t r a c t iv e his tor ic crime statistic sanitation rating b u i l d i n g c o n d i t i o n s e n v ir o n m e n ta l d a ta continuity proximity connected readable w a l k a b l e w a l k a b l e c o n v e n i e n t ac ce ss ib le fu n a c t i v e v i t a l s p e c i a l real useful indigenous sustainable lo ca l b u si n e ss o w n e rs h ip l a n d - u s e p a t t e r n s property values rent levels retail sales traﬁc data mode splits t r a n s i t u s a g e p e d e s t r i a n a c t i v i t y p a r k in g u s a g e p a t t e r n s Favorable conditions access to land, circulation of capital, family mobility, socioeconomic trends, attractive urbanscapes, well-developed infrastructure investments and new residents urban landscape and local land use are changed, prices rise influx of economic, social, and cultural capital original residents are displaced area becomes prestigious/trendy Motivators create favorable conditions (eg. property developers, city authorities) Gentrifiers Exploit favorable conditions (eg. new residents, business owners) THE PROCESS OF GENTRIFICATION Compiled by ThinkCo, based on: Project for Public Spaces, What Makes a Successful Place?, https://bit.ly/3f6KTkR (accessed May 11, 2021) ELEMENTS THAT MAKE UP GREAT PUBLIC SPACES If the ratio of public to private investment in a given area is 1:5 after a decade of revitalization efforts, the area can be considered no longer in crisis and capable of sustaining itself. mixed-use | urban contexts

14. 26 hoods, even if the former were already home to prospering businesses. The city of New York has adopted a similar approach. These changes in urban planning policy have been further fueling specula- tion about the possible redevelopment of areas occupied by successful businesses into residential zones, which would further deindustrialize the city at the cost of decreasing labor market diversity.29 Attractive mixed-use developments may also end up driving residential property values up in key areas of rundown districts and inadvertently exacerbate existing social and spatial inequalities driven by job polarization.30 According to a Dutch research report, households are willing to pay up to 6% more for a house in a mixed neighborhood.31 The range of adverse consequences of rapidly changing the socioeconomic structure of a given area is usually referred to as gentrification. Gentrification is the process of reshuffling urban communities in favor of more affluent residents and businesses offering pricier products and services, which often precipitates skyrocketing rents and property prices. The resulting price pressure forces the less affluent residents out of the community—ultimately leading to social devaluation. While refurbishing the social fabric with new investments might help create more diverse communities, it does not automatically lead to greater inclusivity.32 In order to avoid adverse social outcomes like these, it is necessary to practice active community management and offer multiple avenues for as many opportunities for community integration as possible. placemaking The success of mixed-use projects is never coincidental but is the product of a very deliberate process involving use selection, urban design, commercializa- tion, and long-term community building. The latter aspect is referred to as placemaking, which itself is usually defined as a people-focused approach to planning, designing, and managing public spaces, based on observing and listening to the needs of people that live, work, and play within a given space. The feedback collected in the process is then used to create a collective vision for a given place, which can be quickly turned into action— from small improvements all the way up to long-term strategies for animating public spaces. Successful placemaking takes advantage of the potential of the local community, encouraging it to rediscover public spaces as a catalyst for interpersonal interaction and the possibilities offered by a particular location. Consequently, new mixed-use developments ought to focus on comprehensive, penetrating analysis and smart design efforts, but also on a variety of cultural and social aspects that define a given place and support its ongoing evolution. A research report prepared by Gensler Experience IndexSM has shown that a noticeable sense of place considerably improves the human experience of space.33 In case of mixed-use projects, the placemaking process should begin before construction on the development commenc- es and continue for years after all work is completed. As it is likely that some large urban developments, with delivery timelines sometimes stretching into decades, will experience economic downturns and industry crashes over their lifetime, placemaking strategies ought to be designed to be as open and flexible as possible so that they can adapt to current economic circumstances and the financial health of property owners and tenants. Compiled by ThinkCo, based on: Diana Kusumastuti, Alan J. Nicholson, “Study Report Mixed-Use Urban Planning and Development,” BRANZ Study Report 481 (2017). WEST VILLAGE, CHENGDU Chinese Chengdu aspires to become as green as possible. In these efforts, the city is supported by projects such as West Village. Although from the outside it fits into the traditional architecture of the street and continues the surrounding frontage, this large complex conceals a huge courtyard with green areas and several grass pitches. Around the core users will find offices and shops, but also social and cultural premises. source: Jiakun Architects THE MULTIDIMENSIONAL NATURE OF PLACEMAKING ACTIVITY - diversity - vitality - street-life - people - fine-grain - opening hours - time dim. IMAGE (cognition, perception & information) - symbolism - memory - receptivity - psychological acces - feat FORM - location - density - permeability - landmarks - public realm - horizontal dim. - vertical dim.

15. 29 28 social aspects in mixed-use projects 4 Societies are never homogenous, and the expectations of real estate market stakeholders depend largely on their age. Generations are cohorts of people born in a specific date range, usually juxtaposed against other analogous cohorts, who share similar cultural experiences and are molded by the same major historical events, economic conditions, and dominant political discourse. Painting simplified portraits of all the generations currently participating in the real estate market is crucial for complex mixed-use projects, as it allows investors to better define target buyers or tenants, determine demand for individual components of the developments, and then adapt its infrastructure and overall design accordingly. As we age, our needs change, sometimes considerably so. Diversifying the age structure of residents and tenants is thus in the best interest of mixed-use developments, because it helps build dynamic, involved communities that make animated, vibrant neighborhoods. BABY BOOMERS (1947–1964) Much of the cohort has already reached retirement age. Following the post-1989 transformation, boomers established themselves as the dominant force in society, a position they are reluctant to give up. The oldest of them are concerned chiefly with elderly care and living out their lives in comfort, in contrast to the generations before them. At this point in their lives, they are looking mostly for peace and quiet; they are relatively stationary and have their own ways of spending free time. Mixed-use developments can support their activity and wellbeing by offering proximity to well-developed amenities and services, and by placing them within a multi- generational community. GENERATION X (1965–1981) The archetypal young rebels, marked by the difficult political situation of the Polish People’s Republic. Its eldest representatives will soon be entering retirement, much of the rest is well into middle age. Brought up under the Communist system, they nevertheless entered adulthood as Poland began its watershed socioeconomic transformation, which means the cohort tends to carry an overrepresentation of neoliberal economic views. Socially and economically active, they still believe themselves starkly different from their parents. Gen Xers from large metropolitan areas often belong to the upper middle class and, consequently, expect an appropriately high standard of living, along with spaces and service base tailored to their status. GENERATION Y (1982–1995) Also known as Millennials; although they were considered synonymous with youth until relatively recently, the oldest of them will soon be forty. Mostly settled in their professional and private lives, they are slowly making their way into executive positions. As the first Polish generation shaped by capitalism and unfettered access to the West and its trappings, their aspirations are very similar to those espoused by their Western counterparts. The generation of the 1980s baby boom, they are the largest group in the Polish job market right now and will remain so at least until they reach retirement age. Because most have little children, Millennials will expect mixed-use developments to offer childcare facilities, schools, playgrounds, and safe pedestrian spaces. At the same time, Mil- lennials are strongly focused on fulfilling their aspirations, which translates into high demand for popular services and products. generational differences source: Callum Shaw, Unsplash

16. 31 30 P R E W A R G E N E R A TIONS (190 1 – 1 9 4 6 ) G ENERATION Z (1 9 9 6 – 2 0 1 0 ) G E N E R A T I O N Y O R THE MILLENNIAL S ( 1 9 8 2 – 1 9 9 5 ) GENERATION X ( 1 9 6 5 – 1 9 8 1 ) B A B Y B O O M E R S ( 1 9 4 7 – 1 9 6 4 ) GENERATION Z (1996–2010) Distinguished by their prominent social, environmental, and political consciousness. Seemingly ever-present in social media, Gen Zers are well informed and quick to organize, which translates into their proclivity for action and social ac- tivism. Their emphasis on consciousness also filters down into their consumer choices—they prefer companies and products that they believe to be socially and environmentally responsible. Simul- taneously, brought up in the information chaos of the early aughts, they are adept at filtering their media intake and identifying fake news and disinformation. Gen Zers expect mixed-use developments to offer socially and environmentally sustainable amenities and believe places that encourage and facilitate interpersonal relationships and exciting experiences to be more important than a diverse services and amenities portfolio. GENERATION ALPHA (2011–) Over the next couple of years, the eldest members of Gen Alpha are expected to begin exerting greater influence over the consumer choices and decisions of their parents. While there is little chance for any detailed insight into their behaviors before 2035, observing them before that would be the smart choice. social factors NESTLINGS The percentage of young people who completed their education and found a job, but decided to not move out of their parents’ homes is steadily growing in Poland. According to EU-SILC data, in 2018, as many as 45.1% of Poles aged 25–34 still lived with at least one parent, making them so-called “nestlings.” Given the difficult economic situation, mistrust of renting and landlords, and difficulty in qualifying for a mortgage, many young people deliberately decide to stay with their parents. In Poland, this phenomenon has been much more prevalent than in the EU, where the 2018 average was just 28.6%, and is poised to become even more widespread (between 2005–2018, the percentage of nestlings in Poland grew by 9 nine percentage points).34 RISE IN SMALLER HOUSEHOLDS The average Polish household in 2019 numbered 2.61 people, the lowest value since the study was first conducted.35 This value is expected to drop to 2.4 people nationwide and 2.0 in cities by 2030.36 This is primarily a result of the growing number of one-person households, itself a consequence of changing cultural norms. The median age of first marriage has been growing since the 1990s, and the percentage of people living alone without children grew from 19.8% to 24.2% between 2008 and 2019.37 This shift can be expected to translate into greater demand for bache- lor pads and smaller apartments. SHIFT TO REMOTE WORK According to data compiled by Statistics Poland (GUS), 24.9% of the workforce experienced remote work during the pandemic.38 The hybrid work model is most likely here to stay after the pandemic, with two to three office days per week being the anticipated scenario. To get ahead of expected demand, comfortable places to work ought to be offered not only by Compiled by ThinkCo, based on: GUS, Polish Population Structure, 1970–2050, https://bit.ly/3szFWXR (accessed: May 10, 2021) source: Lelia Milaya, Reshot source: Anna Kraynova, Canva AGE AND PERCENTAGE OF POPULATION BY GENERATION IN POLAND (2020) 7.8% 22.6% 23.6% 20.7% 15.2% 10% G E N E R ATION ALPH A ( 2 0 1 1 – … ) mixed-use | social aspects in mixed-use projects

17. 33 32 FAMILY-FRIENDLY SPACES Many young families find access to high-quality childcare facilities and preschools essential. Proximity to necessary amenities and services is particularly appreciated by parents that have to move around with small children in tow. The presence of children also impels investors to add safe pedestrian passageways and attractive public spaces, particularly green spaces and playgrounds. Aside from services and basic infrastructure, family-oriented developments may also include less obvious amenities, including additional public toilets, changing tables, and comfortable feeding areas. SERVICES TAILORED TO SENIORS At the functional level, adapting developments to senior needs entails putting emphasis on medical and health services, actively supporting their social lives, and helping them maintain good physical condition. At present, shopping malls are geared primarily toward young and middle-aged customers—but as they grow older, both age groups will expect commercial properties, but by housing developments as well. This, in turn, will affect buyer preferences in terms of property size, number of rooms, and even soundproofing. As maintaining a healthy work-life balance is widely becoming quite the challenge, the importance of comfortable furnishings and designated common rest areas will be growing as well. DOMINANCE OF OLDER GENERATIONS The median age in Poland is already 41, and Statistics Poland expects it to rise to 48 by 2035. In 2050, half of the Polish population will be 52 or older. The shift is mostly caused by the fact that the older generations are numerically larger than the younger ones, and increases in life expectancy. In 2020, every fourth Pole will be 60 or older, and the proportion of senior citizens in the population will continue to grow at least for the next couple of decades. Never before in its history has Poland been in a similar situation and the outsized elderly population will demand a change in urban thinking and a reshaping of the cityscape to fit its needs. responding to new needs NEIGHBORLY RELATIONS Diverse and close-knit communities may be one of the biggest assets of mixed-use neighborhoods. Building mutual aid networks should be initiated and supported by operators of the developments; assistance may include providing appropriate infrastructure and event organization. Drop-in childcare, emergency assistance, shopping for ailing seniors—amenities like these may build an atmosphere of mutual trust and safety, and strengthen the community’s sense of place, both of which are very important to people living alone and the elderly. commercial complexes to retool their offer and amenities to fit senior needs. Ongoing evolution toward services tailored to the elderly will help retain them as customers and that shift will, in many cases, be essential for the survival of many a business, as the numerically smaller younger generations will not be able to replace them. UNIVERSAL DESIGN APPROACH The need for greater inclusivity of building interiors and spaces between individual development components can, to a considerable extent, be serviced by the concept of universal design—that is designing buildings to make them acces- sible to everyone, including people with limited mobility, balance disorders, and impaired vision. Universal design is predicated upon the assumption that all space should be functional first and foremost, and that elderly- and disabled-friendly places are ultimately a benefit to everyone. The user experience of these spaces must be simple and intuitive, and divorced from the user’s own intellectual or physical ability. source: Matthew Henry, Burst source: Nicole De Khors, Burst source: Sarah Pflug, Burst

18. 35 34 60% 50% 40% 70% 30% 20% 10% 0% 25 26 27 28 29 30 31 32 33 34 years PERCENTAGE OF NESTLINGS – YOUNG PEOPLE LIVING IN POLAND WITH THEIR PARENTS RESIDENTIAL PREFERENCES BEFORE AND AFTER THE PANDEMIC (% of “very important” answers) 6 5 4 7 mil 3 2 1 0 2002 2010 2020 70 + 25-34 years 2030 2040 POLISH POPULATION AGED 25–34 AND 70+ BIRTH RATE IN POLAND, 1950–2017 1.6 1.5 1.4 1.7 1.8 1.9 2.0 2.1 2.2 2.3 2.4 2.5 2.6 thousands EUR 1.3 1.2 1.1 1.0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 AVERAGE NOMINAL WAGES IN POLAND (under the macroeconomic assumptions of the Ministry of Finance and the National Health Fund) 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 NUMBER OF POLISH HOUSEHOLDS (IN MILLIONS), 2016–2050 13.0 13.5 14.0 14.5 15.0 15.5 mil AVERAGE HOUSEHOLD SIZE, 2016–2050 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 2.30 2.35 2.45 2.55 2.65 2.75 2.40 2.50 2.60 2.70 2.80 1950 1954 1958 1962 1966 1970 1974 1978 1982 1986 1990 1994 1998 2002 2006 2010 2014 0 100 300 500 700 900 thousands 200 400 600 800 Nominal wages (in euro) ‒ National Health Fund plan (UB2020 guidelines after ’23) nominal wages (in euro) ‒ UB2020 guidelines pre-Covid post-Covid 52% 23% Private outdoor spaces 47% 39% Natural lighting 45% 23% Space for work 45% 31% Proximity to public green spaces 41% 30% Air quality 41% 27% Broadband Internet access 33% 40% Noise 19% 37% Additional rooms 35% 33% Thermal comfort 34% 43% Proximity to public transit 13% 26% Energy efficiency 17% 10% Modern home appliances 10% 9% Proximity to high-quality public schools 10% 7% Sense of community 30% 20% 40% 50% 10% 0% Compiled by ThinkCo, based on: GUS, The Crowded Nest Generation in Poland, 2020 Compiled by ThinkCo, based on: GUS, Polish Household Forecast, 2016–2050, 2016 and Jakub Sawulski, Pokolenie ’89. Młodzi o polskiej transformacji (Warsaw: Krytyka Polityczna, 2019) Compiled by ThinkCo, based on: Employers of Poland, 2020, https://bit.ly/3hfHoeS (accessed: May 10, 2021) Compiled by ThinkCo, based on: JLL, Survey of Residential Preferences Among JLL Polska Staff, 2021

19. 36 characteristics of mixed-use developments

20. 39 38 mixed-use, meaning what? 5 To better understand multifunctional projects, we must first distinguish between mixed- and multi-use projects.39 While the latter also include a variety of uses, they lack the integrating components: pedestrian connections, a shared brand, deliberate interlinkages. Most large developments are multifunctional– residential projects with services on the ground floor, office towers with gyms and restaurants. Most of these, however, are ancillary uses, accommodating the cornerstone use. Making an area multifunctional, then, is only one part of creating a successful mixed-use project. Residential, office, and commercial spaces usually take up the largest amount of space within mixed-use developments. And as projects grow in size, they also begin growing more complex—whenever investors feel con- strained by available space, they tend to focus on one of these three core functions. And although housing, offices, and business spaces are indeed pillars of mixed-use neighborhoods, the food service function appears to be at least as important, despite usually serving in a complementary capacity. Alongside their open character, varied pricing, and lifestyle appeal, the outsize popularity of restaurants, cafés, and bars is driven primarily by their synergistic influence on other project functions. The social and financial impact of mixed-use projects extends beyond the sum of their component functions, as their mutual linkages may be synergistic in nature, and, consequently, amplify the appeal of individual components. Given the sheer variety of sizes, character, and locations in mixed-use developments, compiling a comprehensive typology of the synergistic influences between individual functions within mixed-use projects would be problematic. Our analyses, however, have identified cer- tain prominent patterns. cornerstone uses We can identify three specific, profit-driving uses, that almost always appear within mixed-use projects: office, residential, and retail. Furthermore, one of the three is always positioned as the dominant use in the development. The selected cornerstone use, or a combination thereof, usually defines the character of the entire project. RESIDENTIAL Includes multi-family units for sale or long-term rental (public and commercial). May also include single-family units, in the form of detached homes (rarely) or row houses (more often). Rounded out a range of residential services: student accommodations, coliving, and elderly housing. OFFICE May include traditional office spaces, intended for businesses and public institutions, as well as serviced offices and coworking spaces. RETAIL Varieties of this use include ground-floor spaces, detached properties, arcades, and shopping centers. One particularly popular form of retail use is the open-air marketplace, bringing together multiple product and service vendors. ancillary uses Mixed-use developments are often rounded out with a variety of ancillary functions, the number of which usually increases along with the size of the development. Although they take up less space and bring in less revenue than cornerstone uses, they affect the image of the complex, build added value, and draw foot traffic. FOOD SERVICE The most widespread of ancillary uses, responsible for creating the atmosphere of a given place and cultivating a sense of urbanness. This particular use is represented by a range of different food service establishments: independent restaurants, cafés and bars, islands offering takeout, food hall spaces, and temporary, seasonal arrangements. HOTELS Broaden the resident pool by attracting people from outside the neighborhood. Traditional hotels and hostels are often augmented by condo- and aparthotel solutions, as well as individual dispersed rental. source: David Sury, Unsplash ALTMARKT-GALLERIES, DRESDEN Dresden's Altmarkt-Galerie is a large shopping mall, additionally enriched with office and hotel functions, and thus well complements the reviving city center. The development mostly consists of new buildings, while the main facade belongs to an adapted historic building. source: Pauline Fabry The three basic functions that are almost always present in mixed- use projects are: residential, offices and retail.

21. 41 synergy housing office retail & entertainment food service hotels culture sports and recreation education logistics housing office retail & entertainment food service hotels culture sports and recreation education logistics poor strong moderate Compiled by ThinkCo, 2021 SPORTS AND RECREATION The recreational use generates evenly distributed traffic; includes gyms, fitness clubs, swimming pools, and football fields. In its entertainment-oriented incarnation, like stadiums and large arenas, it can attract large groups of people for major events. CULTURE Like its sports counterpart, the culture use has everyday- and event-oriented incarnations. The former includes libraries, creative spaces, and cultural centers, while the latter primarily involves theaters, operas, and museums. LOGISTICS Relatively new function within mixed-use developments. The growing significance of urban logistics has brought new prom- inence to so-called Small Business Units (SBU), which can be used as warehouses, representative offices, or even light manufacturing facilities. EDUCATION Defined broadly, the education use includes childcare and K-12 facilities, as well as academic and continuing education institutions. The first two are highly welcome, and sometimes even required, in large-scale developments with a siza- ble residential component. HEALTHCARE Private medical practices, clinics, and, in the case of the largest developments, even hospitals. In the European context, the healthcare component usually appears in projects either initiated or co-sponsored by public authorities. PUBLIC ADMINISTRATION Usually public works projects or public– private partnerships, featuring an office component. Often used by district, city, or other local administrative authorities. ENTERTAINMENT Routinely conceived as a component of the retail use, it also tends to incorporate elements hailing from cultural, sports, and food service uses; meant for the broadest possible group of target end-users. This category includes night clubs, bowling alleys, and play areas for kids. TRANSPORT Mixed-use complexes, especially larger ones, tend to be well-integrated with different modes of urban and long-range transit, including airports. Projects that emphasize transit-related aspects are usually referred to as transit-oriented developments (TOD). first: housing The residential component might include a variety of dwellings: privately-owned properties, short- and long-term rentals, as well as senior citizen and student housing. Consequently, mixed-use developments may attract a broad and diverse resident profile. Most businesses in mixed-use communities, however, would fail without extending their customer base beyond the residents living in the neighborhood—a predominance of residential uses goes against the principles of mixed-use developments, while their underrepresentation usually translates to an insufficient customer base. Never- theless, the presence of residents allows for quicker discovery of new services and provides a pool of prospective customers, additionally fed by people from outside the development. The residential and commercial uses are strongly tied together, especially when it comes to everyday services: grocery shopping, hairdressing, small craftsman- ship. This is mirrored by the demand for food service facilities that residents can use daily, either by dining in or ordering takeout. In some cases, the residents provide the customer base for sports and recreation facilities, and situating a gym or a swimming pool next to a residential building can significantly increase the appeal of the facility. second: offices The synergy between residential and office uses is much looser. Mixed-use developments are not necessarily designed XXXX “Creating Destinations” is our motto and the crux of our strategy—we seek to create places that pull people in. This means that we want to responsibly and sustainably participate in the creation of Polish urban fabric, we want to create cities that are comfortable to live, work, and rest in. By revitalizing swathes of urban land, we take areas that are often sealed off from the rest of the city and refashion them into new, revamped neighborhoods. Examples include Browary Warszawskie or Fuzja in Łódź, where office space is fused with housing, retail, services, wide open public areas, and green spaces. Projects like these require a lot of attention and close collaboration with city authorities and neighboring communities. But the effort is very much worth it. Urban landscapes benefit from well-designed neighborhoods and social infrastructure. Investors, meanwhile, will value the stability offered by developments like these. Eco- nomic cycles affect industries very differently, meaning that when one sector is experienced a downturn, others may be thriving. Consequently, “destination” developments are much less vulnerable to market fluctuations. To anticipate the shifting tendencies of the real estate market, we tap into our competencies in key sector and invest into new, promising business lines, like rental units or serviced offices, which then enrich and elevate our multipurpose projects. Nicklas Lindberg Chief Executive Officer at Echo Investment SYNERGY LEVELS BETWEEN INDIVIDUAL FUNCTIONS IN MIXED-USE COMPOUNDS mixed-use | mixed-use, meaning what?

22. 43 42 to put bring home and work lives together within the same space, and the two uses have little impact on one another. How- ever, the presence of both housing and offices within one development considerably boosts the number of daily visitors and users, generates round-the-clock foot traffic in the neighborhood, and strengthens its viability, which, in turns, translates to better exploitation of remaining uses. Offices sit rather well with all sorts of food service establishments, providing workers with lunch options and venues for business and private meetings. Additionally, restaurants situated near office buildings can be contracted to service company events and team-buildings meetings. Similar synergy exists between offices and hotel facilities geared toward business customers, capable of hosting large company gatherings and conferences. third: retail and entertainment Retail almost universally benefits from being surrounded by housing. Combined with well-developed amenities and food establishments, retail creates activity centers capable of attracting customers from outside the project area. Entertain- ment plays a key role, as it interacts with other components of mixed-use projects in myriad ways, mostly depending on the form it takes. Clubs will clash with housing but may synergize well with hotels and restaurants. Covered play areas for children, on the other hand, will likely enjoy the support of the locals. Over the coming years, shopping centers and malls will likely draw conclusions from the long months of the pandemic and undertake a rapid evolution. In each case, their presence within mixed-use communities ought to be examined in detail to prevent users from being captured and isolated inside malls. Preferable solutions in this case include shopping streets and smaller department stores, both of which generate considerable foot traffic. One relatively recent and very interesting phenomenon is the development of urban logistics. Smaller modules can be cleverly incorporated into the urban fabric and rounded off with offices, showrooms, and package pickup points. This particular use will fit lots situated by major traffic corridors and relatively close to dense urban areas. In the near future, it might also be welcome by retail properties, as it will offer them opportunities to develop their multi-channel sales platforms. source: SKL Architects CHOPHOUSE ROW, SEATTLE Many features can fit also into small-scale projects. Chophouse Row connects flats and offices in a modernized and extended historic building located amidst dense downtown development. It includes an intimate passage and a courtyard with shops and eateries that also attract visitors from the outside. PHASES OF THE DEVELOPMENT PROCESS MIXED-USE PROJECTS SINGLE-USE PROJECTS Phase 1: PROJECT INITIATION • A project team with experience in diverse market segments • Involvement of public administration and officials responsible for city planning • Proper definition of development objectives, financial and otherwise • Multidimensional analysis of local social, economic, and spatial contexts, as well as the development’s potential for growth • A leader with experience in a given market segment, specialized project team • Relatively minor/routine involvement of the public sector • Specifying a clearly defined goal, based on prior experience • Analysis of the market potential of the selected use Phase 2: FEASIBILITY STUDIES AND FINANCING • Necessity to define development strategies along with alternatives for their individual elements • Complex feasibility analysis to define and optimize development strategies • Necessity to securing large, multi- layer financial commitment and structuring financial arrangements • A targeted development program and growth strategy • Analysis of the adopted provisions and simple economic modeling • Possibility of using single-source financing, simpler financial arrangements between owner and bank Phase 3: PLANNING AND DESIGN • Complex planning involving urban considerations • Creation of interrelationships between design elements, and between the project and its environment • Significant involvement of a diverse range of specialists and the possibility to invest in hiring world-renowned designers • Conventional design process • Urban considerations play a smaller role, often limited to legal requirements • Smaller involvement of specialists from fields outside essential requirements and needs Phase 4: CONSTRUCTION • Multiple contractors working in different lots at different times – phases • Monitoring the consistency of contractor efforts is critical • Collaboration with a greater number of specialists • Usually a single contractor, overseeing planning and coordination of site works • Fewer specialists involved Phase 5: MARKETING AND OPERATIONAL MANAGEMENT • A more varied and innovative approach to marketing strategies • Long-term promotion building the brand image of the development and generating interest • Centralized control systems for space management and coordinating management of individual project components • Marketing approaches targeting specific use only • Greater promotional effort preceding project completion; relatively smaller effort later on • Single building under management Compiled by ThinkCo, based on: Charles Y.J. Cheah, Kok S. Tan, “Mixed-use project development process: Features, pitfalls and comparisons with single-use projects,” a presentation delivered at the ICCEM conference, Seoul, October 16–19, 2005 A COMPARISON OF THE MAIN FEATURES OF MIXED-USE AND SINGLE-USE PROJECTS

23. 45 44 characteristics of mixed-use developments 6 With their diverse offer and capacity to bring separate uses together within the same area, mixed-use developments are naturally poised to become unique, remarkable spaces. While this makes them notoriously hard to define, it also offers investors and designers a rich canvas on which to combine individual components in a way that begets innovative architectural con- cepts alongside appealing developments capable of addressing the needs of diverse communities. It is precisely because of the unique character of individual mixed-use developments that questions continue to arise regarding their size, location, relationship with the neighborhood, and their specific use mix. The latter sim- ply describes the relative proportion of individual uses within a development and to better understand how diversified a given offer is, we must dig past surface-level breakdowns. Retail is a fine example, as the broader category includes a variety of components: temporary or permanent open-air markets, independent ground-floor outlets, shopping malls, local shops, and huge, brand- name chain stores. All these elements attract a different customer profile and project a different image of the place. To get a better understanding of the complex character of mixed-use projects, we analyzed over 100 developments from all over the globe. The study was qualitative first and foremost, with the sample deliberately diversified, and sought to identify the key differences in scale, location, and cultural context between the developments in question. scale and location The projects making up the sample, which comprised a comparable number of differently sized projects, have been selected to allow valid conclusions to be drawn about the uses making up the developments and their specific mix. Among the selected developments, 29% were small hybrid buildings and small complexes, 36% were mid-sized complexes and large hybrid buildings, while 35% were large neighborhoods and multipurpose districts. Most of the projects in the sample (57%) hailed from Europe, while every third was located in either the US or Canada (32%). A lineup like that allowed us to focus on familiar cultural and spatial contexts, but still take into account the experiences from North America, where the concept of mixed-use complexes had reached maturity. In Europe, mixed-use developments are most likely to be found in the Netherlands, the United Kingdom, and France, where they are supported by local regulations and greater public sector involvement in multipurpose PPP investments. Nearly all the examined investments were found within large metropolitan areas. Nearly half (48%) were located in city centers, suggesting that mixed-use investments not only generate a dense, service-rich urban fabric, but eagerly take advantage of it as well. Thirty-sev- en percent of the analyzed projects were situated within metropolitan areas but outside the city centers, and most of them were larger investments comprising up to a dozen buildings and well-developed public spaces. Only 14% of the examined projects were located in the suburbs. Suburban mixed-use developments are almost unheard of in Europe, but relatively popular in the US and Canada, even in remote and car-dominated suburban areas. The smallest of the examined projects were overwhelmingly (68%) situated in city centers and nearly absent from suburbia. Developments like these tend to require relatively high transit volumes and ancillary uses to synergize with, as they are usually unable to attract a large enough customer base on their own. The situation is different for larger-scale developments—large hybrid structures or complexes consisting of anywhere from a few to a few dozen buildings. Capable of attracting users and tenants, they become a destination unto themselves, rather than just an extension of the surrounding functions. Their inherently inclusive nature prompts the emergence of socially and functionally diverse urban communities, offering their advantages and amenities not only to permanents residents, but to locals living nearby, visitors from other districts, and tourists. source: Gevym, Unsplash source: Visit Montgomery To get a better understanding of the complex character of mixed- use projects, we analyzed over 100 developments from all over the globe. PIKE ROSE, WASHINGTON This is an example of an effective imitation of the city’s organic development on the scale of one multi-functional project. Appropriate phasing of the investment, diversification of the offer and a large dose of street art resulted in a well- functioning urban area in the suburbs.

24. 47 46 Poland—Europe—United States The differences between Poland, Europe, and North America are readily apparent already when we compare the sizes of development. In Europe and North Amer- ica, smaller mixed-use projects (or hybrid buildings) are much more prevalent, making up around 30% of the total number of developments. In Poland, meanwhile, only 9% of the examined developments could be classified as small-sized. Mid- sized complexes, situated on lots span- ning a couple of hectares (between half a dozen to two dozen acres), are much more prevalent in Europe than in North America. In Poland, mid-sized projects make up the majority (59%) of all developments. Larger projects, taking up entire neighborhoods or districts, are much popular across the Atlantic. Poland once again diverges from the European norm here—larger mixed-use projects make up almost a third of the developments we analyzed (around 10 percentage points above the overall European average). The spatial structure of cities, travel behaviors, and the character of all mixed-use projects all must be taken into consideration in the study of where within cities are these developments situated. As many as 42% of the analyzed developments from the US and Canada are located in the suburbs, nearly a third sit outside the city center (but still within city limits), and only every fourth is located in the center. In Europe, meanwhile, the opposite is true—all mixed-use Doki, Torus i Grupa Euro Styl developments on this side of the Atlantic are embedded in dense urban fabric, with the overwhelming majority located right in the city centers (68% in Poland, 64% in the rest of Europe). use mix Our analysis seems to support already published conclusions—prevailing dominant uses in mixed-use complexes include retail (93%), offices (84%), and residential (80%). One specific function, however, trumps all the rest. It’s food service, which, despite almost always appearing in an ancillary capacity, is crucial for mixed-use developments’ cityforming aspirations. Restaurants, cafés, and bars synergize strongly with almost all urban land uses and keep public spaces vibrant. Their significance is reflected in the numbers: a food service function was present in 95% of the analyzed developments. Importance is also attached to the cultural use, appearing in 61% of mixed-use projects and pulling ahead of hotels (46%) and education (25%). While culture rarely drives profit directly, its presence contributes to the unique character of a given place and attracts exter- nal visitors and users. Having a Western institution or public sector organization on as a partner or investor is also a factor. In-depth analysis also reveals that functions tend to be added as development size grows. The correlation comes as no surprise—larger developments can incorporate more niche functions and diversify their offer. The use mix also changes considerably depending on location. Curious- ly, suburban developments are typically diverse, incorporating the majority of analyzed functions much more frequently than their counterparts located closer to city centers. The diversity of the former is likely driven by their sheer size as well as the necessity to foster their own synergies with relatively underdeveloped suburban areas. ELBPHILHARMONIE, HAMBURG Although the Hamburg Philharmonic has quickly become a symbol of the city, not everyone knows that it hosts functions that go beyond classical music. We will find there a large hotel, a conference center, several dozen luxury apartments and a retail and service section with restaurants and bars. The complex is part of the new HafenCity district. source: Herzog De Meuron mixed-use | characteristics of mixed-use developments

25. 49 48 MOST COMMON USES IN MIXED-USE COMPLEXES MOST COMMON USES BY URBAN LOCATION DEVELOPMENT SIZE Compiled by ThinkCo, 2021 (n = 100) 97% 89% 94% 100% 82% 98% 71% 85% 91% 50% 59% 71% 36% 44% 57% 21% 44% 57% 39% 41% 18% 24% 91% 75% 74% 31% 57% 98% 89% 100% 100% 94% 89% 81% 93% 64% 34% 49% 57% 34% 43% 53% 51% 44% 19% 33% 86% 77% 81% 21% 29% 95% food service 93% retail 84% offices 80% housing 61% culture 46% hotels 46% transport 42% sport 25% education URBAN LOCATION OF MIXED-USE INVESTMENTS (research sample) LOCATION BY GEOGRAPHICAL REGION (research sample) DEVELOPMENT SIZE BY GEOGRAPHICAL REGION (research sample) URBAN LOCATION BY GEOGRAPHICAL REGION (research sample) SIZE OF MIXED-USE DEVELOPMENTS (research sample) DEVELOPMENT SIZE BY URBAN LOCATION (research sample) 29% 33% 9% 45% 19% 32% 59% 32% 22% 52% 26% 64% 68% 36% 32% 0% 0% 42% small small 68% 53% 29% 29% 41% 40% 4% 6% 31% 29% small 36% mid-sized 35% large 32% North America 34% Rest of Europe 23% Poland 7% Asia 4% Other mid-sized mid-sized large large 48% city center city center 14% suburbs suburbs 37% outside the city center outside the city center Compiled by ThinkCo, 2021 (n = 100) 85% 60% 61% mid-sized outside the city center outside the city center Europe overall small city center city center Poland large suburbs suburbs North America food service retail offices housing culture hotels sports transport education

26. 51 50 Because malls often act as attractors, responsible for drawing in visitors and users from outside the development, they are far less common in predominantly residential projects, which emphasize building a community closely tied to its surroundings. These housing-heavy developments, in turn, appear much more hospitable to temporary or permanent marketplace areas, which reinforce the local feel of the neighborhood. Areas like these can be found in almost a fifth of all mixed-use developments that include a retail use. Interestingly, the popularity of marketplace areas sets European mixed-use developments apart from their North American counterparts. While only 11% of European developments feature a marketplace area, in the US and Cana- da the rate is as high as 32%. Reasons for the difference may include a more planned approach to establishing local centers and deliberate efforts to reconsti- tute elements comprising the traditional city on the grounds of large suburban developments. The remaining subcategories also tend to be more common among American developments, which is most likely due to their overall larger sizes and functional independence. offices Offices are the second most popular function in mixed-use complexes, appearing in 84% of the analyzed examples. All the developments in the sample included office spaces leased in the traditional manner—to one company for a pre-determined period. Every fourth, meanwhile, also included coworking spaces and serviced offices. The former are particularly welcome in fashionable downtown locations, as they tend to draw in young, creative entrepreneurs, which, in turn, prompts further diversification among a development’s user base and reinforces a specific image of the area. Addressing the need to live and work within the same place seems particularly pressing in the wake of the COVID-19 pandemic. We have grown fond of the time we have been gifted by the elimina- tion of daily commutes through crowded and congested cities. Our view of local- retail Our analyses indicate that retail is one of the most common function in mixed- use complexes, appearing in 93% of the developments in a variety of shapes and forms. To better understand its character, we identified four distinct subcategories within the retail function. Independent stores, usually situated in ground-floor locations, were the most popular subcategory, appearing in 92% of the projects that included retail in its use mix. Smaller locations allow for greater diversity in the product and service offer, and bolster the local feel of the property. Ground-floor locations usually house specialist vendors offering a nar- row product (bakeries, coffee roasteries, butcher shops, and fruit and vegetable stores) or service (tailors, shoemakers, and hairstylists) lineup. Big-box retailers come in second, appearing in over 39% of projects that included retail in its use mix, usually as part of larger retail and service complexes or big residential developments. Stores like these are also often found in shopping centers, the latter as popular in mixed-use developments as supermarkets (40%). OFFICE USE SUBCATEGORIES IN MIXED-USE COMPLEXES RETAIL USE SUBCATEGORIES IN MIXED-USE COMPLEXES MOST COMMON RETAIL USE SUBCATEGORIES BY DEVELOPMENT SIZE Tradycyjna 100% Fabryka Norblina, Capital Park Compiled by ThinkCo, 2021 (n = 93) Compiled by ThinkCo, 2021 (n = 84) Compiled by ThinkCo, 2021 (n = 100) ness and the advantages (or drawbacks) offered by our immediate surroundings has also changed. This shift may ultimately benefit mixed-use developments, which could potentially redefine the standard of urban living by embracing a careful mix of housing and office spaces. Shopping galleries, arcades Marketplace areas Big-box stores (supermarkets) Independent stores (mostly in ground floor loctions) 40% 21% 39% 92% 100% 26% mid-sized small large Traditional leases Flexible leases (coworking, serviced offices) mixed-use | characteristics of mixed-use developments 91% 91% 71% 35% 46% 25% 12% 29% 18% 35% 26% 51%

27. 53 52 housing Housing is the third most popular function in mixed-use developments, appearing in 80% of all analyzed complexes. The reasons behind its significance are manifold. First, housing introduces a stable pool of residents into the neighborhood, who will provide the user base for the remaining uses to draw on. Sec- ond, it is a key revenue stream, offering a relatively quick return on investment (residential properties for sale) as well as long-term rental incomes. Third, housing is prerequisite to any attempt to build a community or a genuine sense of place. In mixed-use complexes, housing is dominated by two subcategories—properties for sale (81%) and properties for commercial rental (64%). The third-largest subcategory is long-term public rental housing, appearing in 23% of the analyzed developments. Rent-controlled housing remains the hallmark of larger developments, boasting considerable public sector involvement and built on public land, either entirely or in large part. The resident pool is further diversified by the presence of additional rental accommodations, like student housing (5%), coliving and cohousing solutions (6%), and senior housing (5%). Tracing the correlation between types of residential use and development size also reveals that privately-owned housing is relatively rare in smaller mixed-use projects (the rate being 50% in smaller developments and 83% in larger ones). One possible reason for that may be reluctance on the part of the investors to relinquish full control over the property by transferring some of the ownership into private hands. Additionally, having privately-owned properties on the premises may cause administrative difficulties down the line and even render the complex impossible to sell. culture Although nowhere near dominant in terms of surface area, cultural buildings are still an important component of mixed-use developments. Cultural activity, in whatever shape or form, was found in 61% of the projects. Alongside being a natural attractor, the culture use also complements a number of other functions—it generates inbound travel and satisfies the everyday cultural needs of the community through libraries and cultural centers. Cultural institutions often serve as local community centers and are particularly important to children and seniors. Although most of their activity is confined to the venues themselves and expressed in the form of a variety of events, they are nevertheless crucial to the formation of a dynamic community. Additionally, the commercial potential of movie theaters and concert venues is not insignificant. The cultural buildings in question were broken down by the type of traffic they generate into two subcategories: event-focused (theaters, movie theaters, event venues) and person-focused (museums, libraries, creative spaces). The two subcategories exhibit a similar prevalence in general (45% and 43%, respectively); differences begin to emerge only when we take development size into account. In smaller projects, person-focused culture is more prevalent (43% vs 14%). As the development size grows, so does the importance of event-focused culture: we will find it in half of mid- sized and 66% of larger developments. Person-focused culture, however, does not trail far behind in either, appearing in 38% of midsized and 49% of larger developments. Likewise, as the project scale grows, so does the demand for supplementing cornerstone uses with commercial cultural buildings capable of generating more inbound traffic. RESIDENTIAL USE SUBCATEGORIES IN MIXED-USE COMPLEXES 81% MOST COMMON RESIDENTIAL USE SUBCATEGORIES BY DEVELOPMENT SIZE MOST COMMON CULTURE USE SUBCATEGORIES BY REGION MOST COMMON CULTURE USE SUBCATEGORIES BY DEVELOPMENT SIZE 64% 23% 5% 5% 6% 6% 9% 11% 4% 3% 6% 21% 9% 26% 46% 47% 60% 50% 59% 83% 0% 0% 0% Compiled by ThinkCo, 2021 (n = 80) Compiled by ThinkCo, 2021 (n = 100) Compiled by ThinkCo, 2021 (n = 89) Compiled by ThinkCo, 2021 (n = 100) 35% person-focused: libraries, museums, creative spaces 58% event-focused: cinemas, theaters, events 31% event-focused: cinemas, theaters, events 40% person-focused: libraries, museums, creative spaces senior housing coliving cohousing properties for sale student housing long-term rental, public long-term rental, commercial mid-sized small large 14% 43% 50% 66% 49% 38% small mid-sized large event-focused: cinemas, theaters person-focused: libraries, museums North America Europe

28. 55 54 sport Mixed-use complexes are usually equipped with sport infrastructure, which appeared in 42% of the analyzed developments. To better understand the category, we broke it down by the type of traffic generated into two subcategories. One is focused on events, and includes stadiums, arenas, and other buildings capable of hosting large crowds. Venues like that typically carry a very large foot- print, so it should come as no surprise to find them missing from smaller complexes and present in a fifth of large mixed- use projects (especially in Asia and North America). The other subcategory is focused on recreation and includes sports fields, gyms, swimming pools, and other venues geared toward amateur athletes. It is much more common in mixed-use developments, appearing in a fifth of the smaller complexes, 41% of the mid-sized, and over half of the larger ones. Its popularity is only slightly higher in Europe (42%) than in America (32%). hotels Hotels appeared in 46% of all analyzed mixed-use developments. Were we to compare North American and European developments, including those in Poland, the results would be surprisingly similar. Hotels grow more prevalent within mixed- use developments as their size increases—they were found in 36% small, 44% mid-sized, and 57% large developments, respectively. This once again seems to evince the capacity of larger projects to better diversify their offer. And although the hotel function typically appears in larger developments in the form of a separate building (75%), establishing a separate, dedicated hotel section within a hybrid building is another popular solution (hotels can be found in 45% of smaller projects). As the nature of this type of business naturally encourages further expansion of the development’s offer, hotels seem an obvious choice for a mixed-use complex looking to grow. Aside from accommodations, most hotels also offer food service, event and conference venues, sports facilities, and other elements capable of attracting a broad user base. This, in turn, strengthens the synergy between the hotel function and other uses featured in a given development’s specific mix. Soho by Yareal PREVALENCE OF THE HOTEL USE BY DEVELOPMENT SIZE PREVALENCE OF SPORTS USE SUBCATEGORIES BY DEVELOPMENT SIZE PREVALENCE OF SPORTS USE SUBCATEGORIES BY REGION 57% Large 0% 0% 21% 41% 20% 54% 9% 4% 16% 45% 42% 32% 44% mid-sized 36% small small event-focused (arenas, stadiums) recreation-focused (gyms, swimming pools, sports fields) mid-sized large Compiled by ThinkCo, 2021 (n = 100) Compiled by ThinkCo, 2021 (n = 100) Compiled by ThinkCo, 2021 (n = 89) event-focused recreation-focused Europe overall Poland North America

29. 57 56 DIVERSIFYING THE USER BASE A rich service offer can attract a broad user base, diverse in terms of age, wealth, and consumer behaviors, which, in turn, can help a development support round-the-clock activity. A diverse community can also infuse a property with much-needed vibrancy and help it mesh with the complex urban landscape of the city. Such diversity, however, comes at a cost: it requires user-friendly spaces, tailored to a variety of individual needs, and a broad, attractive price structure. DIVERSIFYING THE PRODUCT OFFER The rise in user diversity is fueled by an ever-deeper diversification of the product offer. The residential use in a development might encompass a variety of different components: privately-owned apartments, long- and short-term commercial rentals, public, senior, and student housing, coliving spaces, and others. The retail use might include large shopping malls or big- box stores, but also marketplace areas, shopping arcades, and independent street-level stores. Urban green spaces and public areas may also be diversified. All these efforts may further improve the flexibility and long-term stability of the development. key aspects of mixed-use developments 7 Given the complex nature of mixed-use projects, grasping the variety of factors that decide the success of these developments is essential. Our in-depth analysis of over 100 examples from all over the globe illustrates that mixed-use developments, perhaps more than any other project, must be predicated upon a comprehensive strategy and a proper programming plan. The process begins with drafting a multidimensional analysis of the selected site to gain insight into the planned development’s immediate surroundings—their functional and residential cross-section, demographics, wage structure—and, consequently, establish a context against which the project would unfold. This is typically followed with a detailed investi- gation into target user pools: prospective residents, professionals, and users of the local service base, and establishing their overlap. These two steps allow us to determine the parameters of the development’s cornerstone use (which will drive the development and define its image) and select suitable ancillary uses with the goal of focusing on building value and long-term benefits. Further steps involve refining the strategy, identifying revenue streams, and drafting a detailed architectural and urban design plan. The final, key stage entails adopting a space management framework—exemplary mixed-use developments from around the globe show that efficient property management and community-building efforts can attract a solid user base that will not melt away in the face of competition or crisis. multidimensional diversification Diversifying land use in mixed-use projects can take place along a variety of lines. At its most basic, the phrase de- notes the utilization of at least three significant and revenue-driving uses, often supported by ancillaries. Diversifying the product offer, the tenant base, and the user base are three key avenues that can be used to add value to a development. Properties like these are usually managed by a single entity, its day-to-day operations supporting this delicate balance. At the same time, investors reluctant to shoulder the burden of developing a mixed-use property alone often decide to commission a masterplan and then parcel out individual parts of the development to specialist partners. DIVERSIFYING THE TENANT BASE The desired mix of tenants and services ought to be strategically defined already in the earliest stages of development planning. The process will involve not only selecting potential services and determining their price ranges, but also contemplating the character of the businesses providing the services. While corporate clients continue to be the most stable tenants, introducing local brands and small businesses into the tenant profile ultimately stimulates the process of shaping place identity. Additionally, tenant selection is also crucial for reducing potential functional conflict between individual components of the development. A varied selection of venues, flex- source: Copernico, Unsplash Browary Warszawskie, Echo Investment Diversification in mixed-use projects is multidimensional. Primarily, it refers to the use of at least three significant and profitable functions that are often supported by other elements.

30. 59 ible leasing arrangements, preferential rents for desirable tenants are but a few of the instruments that can be used to control the image of a development and boost its appeal. DIVERSIFYING THE INVEST- MENT One of the biggest long-term advantages of mixed-use developments is the diversification of investment portfolios. They are a considerable asset in the real estate market, segments of which are known to be sensitive to business cycles and prone to crises. The coronavirus pandemic, for example, exacerbated the problems plaguing retail spaces and marked the beginning of a significant downturn in the food service and entertainment sectors. At the same time, housing prices plateaued only for a mo- ment, while the warehouse sector noted record demand. The diverse nature of mixed-use projects enables investors to balance out losses produced by poorly-performing assets with revenues from in-demand uses. pedestrian accessibility Because individual uses in a mixed-use development are separated by relatively short distances, residents can find food, shop, and rest all within the same neighborhood. This, in turn, increases the walking mode share in overall travel and returns streets, public spaces, and street-level stores to the people. In- creasing the modal share of walking and cycling cuts down on car use, which re- duces street congestion and automobile emissions while increasing overall safety. Mixed land use also leads to thriving communities and more diverse retail and service bases. Increased population density in mixed-use developments, meanwhile, boosts the profitability of public transport, thus providing a foundation on which to build a network of interconnect- ed locations. The layout of the development ought to be designed with pedestrians in mind and be both clear and intuitive. Designers should remember to avoid monotony in the urban landscape and split individual IMPACT OF USE MIXING ON REDUCING TRAVEL TIMES live live play play work work zoning of activities leads to greater distances in the city and more reliance on private cars compact and diverse complexes reduce travel and allow walking and cycling Compiled by ThinkCo, based on: R. Rogers, Cities for a Small Planet, Basic Books, 1998 GREEN SPACE CHARACTERISTICS availability and accessibility aesthetic amenities/equipment managment acation, distance, size, quantity, quality, security Landscape, quality, perception... Infrastructure, services... frequency, pesticides, watering... GREEN SPACE IMPACTS use and function setting features environmental regulation service - active mobility - food production - gardening - physical activity and sport - relaxation and leisure - social exchange - impact on land price and rent level - modification of living environment and residential quality - biodiversity support - carbon storage - pollution regulation - soil protection - temperature regulation - water regulation PATHWAYS TO HEALTH individual status physical environment social environment - healthy lifestyle - immune system function - mental state - physical fitness - air quality - climate change adaptation - diverse natural micro-organism and antigens - noise - temperature - Water quality - living expenses - safety issues - social cohesion, interaction and participation HEALTH STATUS AND WELL-BEING physical health mental health social well-being health inequity - allergies - cardiovascular effects - injuries - obesity - vector-borne diseases - cognitive functions - depression - stress - isolation - quality of life - social determined health differentials - spatially determined health differentials IMPACT OF GREEN SPACES ON HUMAN HEALTH AND WELLBEING Compiled by ThinkCo, based on: Anne Milvoy, Anne Roué-Le Gall, “Aménager des espaces de jeux favorables à la santé,” La Santé en Action, vol. 434 (2015). + / - + / - + / -

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