Transforming urban business districts into well-connected, pedestrian-friendly, mixed-use environments is a development trend that is gaining momentum in urban areas nationwide, real estate industry experts contend.

According to James W. Todd, president of the Petersen Cos. in Fairfax, Va., the movement to reinvent the nation’s 200-plus suburban business districts into safe, secure and attractive "gathering places" is being driven solely by market demand for more inviting and lively settings for living and working.

“People wanted to be able to live, work and shop in the same area,” Todd said. "You have to be able to adjust the plans to meet market needs."

Many of the same factors that influenced the resurgence of central business districts in the 1990s should be applied to the revival of suburban business districts. These include development density, improved spatial connection between buildings, pedestrian interconnections, street layout, and choice in mode of transit.

However, because the building form and layout of suburban business districts have an independence and separation not found in downtown business districts, they can prove a major challenge to public transit, which is unable to serve lower density and fragmented development in a cost-effective manner, Todd said.

A well-planned mixed-use project is an excellent way for a company to distinguish its work, said Christopher W. Kurz, president of Linden Associates Inc. in Baltimore. "In today's market, the free-standing office building surrounded by pavement is obsolete. If you develop one, you do it at your own peril," Kurz said.

Although adding retail to office use often results in higher rent for the office space, he said retail should be the added product, not the leader. "If you lead with retail, you risk the perception that you are marketing office space in a shopping complex," he said.

Kurz said that obtaining financing for mixed-use projects can be challenging, because the developments don't have a long history and lenders are less familiar with their performance. "Mixed-use projects are not yet mainstream . . .in a good market, they command premium capital rates, and in a tough market, there may be no capital available for them," he said. However, if a developer has the resources and patience to complete a project, the result can be a premium financial return, coined by Kurz as a rewarding "net-to-me" measure of success.

The Urban Land Institute, a Washington-based organization that advocates sound land- use policies, has come with a list of principles for redesigning suburban business districts that can be used by developers, planners and government officials. The principles include knowing your competition and analyzing trends; making symbols and public space part of the development; developing a vision and a plan; emphasizing results over regulations; revitalizing within a smaller framework and make sure the pieces work together; embracing mixed uses so that no single use dominates and honoring human scale by creating a pedestrian-friendly place.

Think transit, think density, ULI suggests. Richard C. Ward, president of Development Strategies Inc. in St. Louis, explains that transit “is worth pursuing when and where you can get it.” Transit alternatives reduce “the need for parking and encourages more interaction between people,” Ward said.

Ward also says that public-private partnerships are key to the success of revamping suburban business districts. “Public/private partnerships are the only way to make mixed-use projects happen,” he said.

In addition, parking should be shared and managed. "Shared space cuts down on the need for parking lots," Ward said.

“It's not easy, Ward said. “There is work to be done, but the results can be very beneficial.”

Bruce Leonard, vice president of design for Urban Investment Advisors in Washington, said the vision for mixed-use developments needs to be shared by the majority of the stakeholders in the community. Piecing a project together often entails negotiations with multiple landowners and various neighborhood groups, he said. “These deals do take time,” Leonard said. “If you move too quickly, you will create an inflexible situation. Be consistent in what you promise to deliver, and you will build up trust.”

Leonard also emphasized that mixed-use projects should reflect the character and heritage of the local community; for instance, he recommended including a mix of local and national tenants, and allowing the tenants some leeway in designing their own street- front image. “Err on the side of flexibility, not the lowest common denominator,” he said.

Todd pointed out that while mixed-use projects can be politically challenging, tough to finance and management intensive, they offer promising opportunities for better growth patterns in urban areas.

"I don't know what will replace them, but they are here today," he said.

Published: December 19, 2002

Use of this article without permission is a violation of federal copyright laws.

Al Heavens writes about real estate and home repair and improvement. He is the author of What No One Ever Tells You About Renovating Your Home: Real-Life Advice For Hassle-free, Cost-Effective Remodeling.