What Is a Mixed Use Development?

What Mixed Use Means in Real Estate

Mixed use real estate combines residential and non-residential uses in one building or planned site. Common combinations include homes and retail, homes and offices or homes and community space.

Mixed use can be arranged in two ways:

• Vertical mixed use: Different uses occupy different floors of one building. For example, a building may have retail space at street level and condos or apartments above.
• Horizontal mixed use: Different uses occupy separate buildings on one planned site. For example, one development may include apartment buildings, office space, shops, parking and public space.

Examples of Mixed Use Developments

A mixed use condominium building may have residential strata units above ground floor retail. The retail space may contain a cafe, grocery store, restaurant, medical clinic, fitness studio or another permitted business.

A larger mixed use development may include separate residential buildings, offices, retail space, public space and parking. The defining feature is the mix of uses.

Residential and Commercial Uses

A mixed use building can contain residential and commercial space. Each area has its own permitted use.

A residential strata unit is used as a home. A commercial unit may be used as a store, office, restaurant or service business, subject to zoning, permits and other approvals.

In Vancouver, the Zoning and Development By-law defines a mixed use residential building as a building with at least one principal dwelling unit and at least one non dwelling use. Zoning and development approvals determine what uses are allowed at a specific address. Review the City of Vancouver’s zoning and land-use policies before relying on a property’s permitted use or future development potential.

Buying a Condo in a Mixed Use Development

You can buy a residential strata condo in a mixed use development. Buying a residential unit does not usually include ownership of the building’s commercial units.

Review the strata plan and purchase contract to confirm the unit’s legal boundaries, common property and ownership interests. Review the Form B, bylaws, rules, meeting minutes, depreciation report and financial statements before removing conditions.

These documents can reveal commercial unit ownership, expense allocation, operating costs, planned work, insurance deductibles, rental rules and concerns related to business activity.

For general purchase preparation, read Kim Lee’s Vancouver homebuyer guide.

What Buyers Should Check

Before buying in a mixed use development, confirm how the residential and commercial portions are owned, operated and financed. Review the commercial activity in and around the building.

Check the following:

• The strata plan, legal description and commercial unit ownership
• Current commercial tenants, vacant retail space and permitted business uses
• Business hours, delivery schedules, loading areas, garbage collection and noise
• Strata fees, operating budgets and the allocation of residential and commercial expenses
• Building insurance, deductibles and responsibility for shared systems
• Parking, visitor access, bike storage and loading zone use
• Rental, pet and short term accommodation bylaws
• Nearby rezoning, development applications and planned construction
• Home based business restrictions and the unit’s permitted residential use

Commercial tenants can change. Review the property’s documents and current surroundings rather than assuming the existing retail mix will continue.

Mixed Use Developments as Investments

A mixed use development is not automatically a better or worse investment than a residential only building. The investment outcome depends on the purchase price, financing, rental rules, strata costs, building condition, commercial uses and buyer demand.

Commercial activity can affect convenience, noise, deliveries, traffic, insurance costs and resale demand. These effects vary by building and by business type.

Before buying an investment property, review actual strata costs, comparable rents, rental bylaws, building documents and the property’s permitted uses. Read my guide to real estate investing in Vancouver for broader information on rental income, financing, operating expenses and investment risks.

Considering a Mixed Use Property in Vancouver?

A mixed use property combines homes with commercial, office or community uses. The living experience depends on the building’s strata structure, commercial tenants, zoning and surrounding development.

Review the building documents and property specific conditions before making an offer. Contact Kim Lee to discuss a Vancouver condo, mixed use property or other residential purchase.