Mixed Use Projects…Proceed Cautiously
Federal Realty knows something about the nature of mixed-use projects. Starting in 1997, the company built one of the first modern mixed-use projects, Santana Row, in San Jose, California. In a recent interview with Reuters, CEO Don Wood spoke about the need to temper the rising excitement over mixed-use projects. As he puts it, they are not the “magic exlir”.
Wood said, “It needs to be like any other piece of real estate — in the right location and fitting in the need of the community.” Its not an easy process. The project can take several years, be riddled with potential permit problems, and occur in pieces instead of having one nice project completion date.
Wood also provides one piece of advice for parties involved in mixed-use projects…”maintain your flexibility”.