The Charlotte Club project can increase office and retail prices, multifamily rent, hotel occupancy and rates as well as accelerate absorption rates. Retail tenants may be willing to pay higher rents because of the increased customer traffic generated by the compatible and complementary uses. Residential tenants and the corporate club memberships apartment component along with hotel guests- will be attracted to the urban community’s “live-work-play-visit” that the development offers. Walkability, vibrancy, community are all traits of mixed-use developments that have been called a trend to watch in 2021, as the demand to live, work, play and visit in one location continues to grow at remarkable rates. A large portion of this increasing demand is driven by the Millennials, Gen Z and Gen X, making up the largest demographic in this marketplace who are moving, transferring, graduating or still in school and want to live close to where they work and play. This development is also perfect for others who desire more variety within their community, and who are not ready to settle down in suburban neighborhoods to support their “Lifestyle” demands.
On-site uses must be compatible, complementary and mutually supportive for synergy to exist. When synergy is achieved, it increases customer patronage, rent levels, sales volumes, and both the investment value, and the market value of The Charlotte Club; thus, the project now has the potential for creating greater total value than if each of the uses were developed in separate locations. Generating this synergy in this project requires that each on-site use serves as an amenity for the other uses, and the office and retail tenants add to the revenue for additional sales from the retail facilities and restaurants beyond what would be expected from area residents. Office tenants are likely to use the hotel located in close proximity to service their clients. Office and retail workers can quickly lease the residential units. To encourage this synergy, the price mix of residential units can provide options for the categories of workers expected in and near our project..
Some of the financial benefits of The Charlotte Club’s development will emanate from the close proximity of a variety of uses with different peak demand times, increasing the hours that the facility is generating income. The challenge going forward will be determining the needs to balance night and day activities so that everything on the site does not shut down at the end of the workday. With a “24/7” vitality as an ideal goal, bringing together users who will use facilities at different times of the day, or days of the week, increases the potential revenue tenants can generate. While office workers might dominate the weekday luncheon crowd at restaurants, residents and hotel guests could form the majority of the dinner and weekend trade. A clear relationship exists between the prospect of synergy and the size the developer has planned for their “Lifestyle” mixed-use project. This can be a definite direct or positive relationship, but it is not known whether the relationship is a straight line yet, a curve that increases at a decreasing rate, or a curve that increases at an increasing rate. At the lower end of the spectrum, there is very little or no synergy in the project consisting of a single residential unit, a single small-scale retail store, and a small-scale office structure located adjacent to each other on a single site. However, as the number of residential units’ increases, a synergistic effect can benefit the retail store. Then, if the most desired office tenant mix in the retail space is achieved, it will benefit the residential units by generating higher rents.
Major capital projects require the work of planners, engineers, construction workers and many others. This project has the potential of generating many jobs. As part of the Final Economic Impact Study, it is estimated that 3,386 direct, indirect and induced jobs will be generated by this Mixed-Use Development Project.
Estimated Direct Job: 1,664
Direct jobs are occupations that work directly on the mixed-use project, such as project planners, designers, engineers and construction workers.
Estimated Indirect Jobs: 1,205
Indirect jobs mean positions of suppliers of materials for the project, such as steel, concrete, wood, and many more.
Estimated Induced Jobs: 517
Induced jobs are jobs created by the spending of monies provided as project salaries for items such as groceries, gas, entertainment, etc.
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