Created by Yaromir Steiner, Founder / CEO on September 26, 2011
Developers everywhere have come to the growing realization that retail is just one star in a larger constellation, and that the mixed-use galaxy can be further enriched with residential elements that contribute social energy and commercial synergy. Thoughtfully designed mixed-use projects with a strong residential component are able to function as a true community, with a correspondingly strong and memorable sense of place. But as mixed-use design becomes increasingly more mixed, the mechanics of how to seamlessly and successfully integrate residential elements into a mixed-use environment has become a greater challenge. As residential continues to become a significantly more important and proportionately larger component of mixed-use projects, discovering new answers to tough questions has become both more relevant and more urgent.
Developers understand that building residential as part of a mixed-use project is very different than a freestanding project; fraught with greater complexity and significantly more challenges. Today, innovative architects and developers are meeting those challenges; leveraging their mixed-use experience and expertise and delivering bold new solutions and powerful efficiencies. One of the most intriguing innovations in this area is the advent of modular and precast residential construction, a trend that has exhibited great promise in its ability to deliver quality residential components with greater speed, efficiency and flexibility. Commercial and mixed-use developers are discovering that, in the context of mixed-use development, residential development lends itself very well to modular and precast construction techniques, and that by embracing these ideas, it is possible to overcome a number of sometimes frustrating and costly challenges.
To truly appreciate the value and evaluate the potential of precast and modular residential construction, it is important to understand some of the key complexities that mixed-use developers face during the construction and development process. One of the most formidable challenges faced in building residential above retail is one of timing. Residential construction currently faces a significant construction delay of 9-12 months as street-level retail is built out first. Additionally, the wood frame structures used for most residential construction and the cost pressures that result in residential construction generally being the focus of smaller contractors with smaller resources creates the potential for more delays, as developers work to integrate a less sophisticated structural system into complex projects and accommodate less efficient delivery systems. This staggered construction schedule not only incurs greater cost, but can also be a significant disruption for retail tenants who are willing and able to open their doors, but are understandably troubled by the overhead construction. The speedy and efficient modular construction timeline goes a long way toward solving the problem of delayed residential construction, and, with a lack of disruption to businesses already operating, facilitates a much faster time-to-market for the finished project.
Modular and precast construction also enables the developer to avoid a number of small but troubling issues that can cause additional costs and create frustrating delays and inefficiencies. Apart from functionality and aesthetic considerations, technical and regulatory concerns such as fire code compliance may emerge as additional complications.
The ability to build out retail first and add precast structures above as circumstances allow, and on a schedule that is both project and marketplace appropriate, can be an enormous asset. While a strong retail hub can often support many hundreds of residential units, many markets cannot comfortably absorb more than a few hundred units at one time. Unlike retail, where critical mass is a vital ingredient right from the outset, residential components can be added over time as demand grows. Such a process must be planned from the beginning (both for construction and structural load considerations and for parking planning), but in terms of its ability to help flexibly stage the development of town centers and other mixed-use projects, modular and precast residential construction is proving to be a unique and powerful development tool.
The bottom line is that the next generation of mixed-use designers and developers are writing the rulebook as they go. Unique challenges demand unique solutions, and modular and precast construction is a one way for developers who are willing to be innovative to make better and more efficient use of their time, their money, and the built environment. Modular and precast residential components utilize a practical approach to help achieve ambitious place-making goals; successfully addressing the financial, logistical and place-making realities of mixed-use development and construction in the process.