A mixed-use property contains two or more types of real estate uses in the same location. A simple example would be an office building with street-level retail stores. A more typical mixed-use property would be a condominium project with residential, office, and retail uses.
Larger mixed-use properties can be very difficult to manage for many reasons, such as:
- Multiple stakeholders who often have different or competing objectives
- Properly interpreting the many legal documents that govern a mixed-use property, and practically implementing them
- Cost accounting for the multiple use groups, as each group must be its own separate profit center
- Appropriately and fairly allocating common area costs amongst each use group when the governing documents do not expressly account for them