Developing in transitional areas

Mixing uses vertically in a project is difficult to execute in any market. It’s virtually impossible in a market with residential rents under $1.25/sf. If your residential demand outweighs your commercial demand, then you may have a situation with commercial space sitting vacant underneath full apartments. Then it won’t be long before you risk empty apartments, too. If the residential use is condominiums, like in the image to the left, then it’s even more difficult. Condo owners and commercial tenants are like Mars and Venus. They need each other, but they do not naturally relate well. In this case, something to consider is a townhome type of residential product that includes very flexible space on the first floor in addition to flexible zoning for the entire structure. The buildings could be residential, retail or office. In this project in Carmel, Indiana; we designed the units under residential code, including all wood frame construction, 9’ ceilings, etc. However, the units are designed and zoned for multiple uses. Each unit includes two entrances to increase its flexibility. In the most common configuration, the space is a home office for the unit owner. In some cases, a business is operated by the owner on the first floor or even the second floor. Note that any owner can place signage on the front of the their unit. No matter how the buildings are used, there is a consistent architectural expression along the streetscape. The best location for this product is along one or two blocks in a small transitional area in between strong retail and residential areas. It fills the gap and provides options for buyers to go whichever direction the market takes them. The project architect can then make the appropriate transition with design instead of the uses deciding it.