Why the stakes are high in mixed-use property management

A cursory look into the state of today’s office and debt markets reveals why owners, developers and investors are seeking ways to mitigate risk and hedge against inflation. Now more than ever it is critical to squeeze the highest and best value out of any new development or existing asset. Investors are showing interest in the overall attractive underwriting fundamentals that mixed-use assets can offer, punctuated by diversified revenue mix, heightened leasing velocity and greater rent growth when compared to single-use counterparts.

“We are seeing leasing activity in mixed-use assets nearly recovered to pre-pandemic levels, while the overall office market continues to face considerably more challenges,” said Sean McNamara, Director of National Accounts at JLL.

Getting these projects financed and built is a challenge. Developers may consider partnering with additional LP investors, including high-net-worth individuals, institutional players, sovereign wealth funds and pension funds or forming public-private partnerships.

Once the project is financed, assembling the land, overcoming political and community opposition and providing an adequate parking ratio are just a few of the hurdles to overcome. Then, once it’s built, sophisticated property management must deliver an elevated, seamless experience across every corner of the property.

The Plaza Coral Gables is a massive 2.1 million-square-foot development in Miami that stands as a modern-day example of how to successfully imagine, build and manage a property of this size and scale. The property encompasses two office towers, 161,000 square feet of retail space, a 2,200-space parking garage, shared common areas, residential luxury units and low-rise townhomes.

The Plaza Coral Gables has turned a misused infill location into a daily destination for thousands of people. It’s also an extraordinary undertaking from a management perspective, and owner Agave Holdings, LLC has put its trust in JLL as a single source management solution.

McNamara added, “Single-source delivery breeds efficiencies, which breeds higher revenues. There are a number of reasons why an investor would opt for this model instead of a chunky, bifurcated or siloed model. Ultimately, it supports the service ethos you are trying to create.”