Mixed-Use Development

Mixed-Use and Highest and Best Use Analysis

RCLCO draws upon decades of experience across all residential and commercial asset classes to help our clients business plan the development, or repositioning of, mixed-use projects in urban and suburban locations. Whether for a single building or a large multi-acre site, RCLCO helps clients determine the highest and best mix of uses based on market-driven demand, revenue potential, and phasing/absorption timeline.

We bring a deep understanding of best-in-class placemaking, premium generation and differentiation to our mixed-use work that includes innovation districts, downtown high-rises, suburban town centers, sports and entertainment districts, and other complex setting. Our approach is customer-driven, informed by sophisticated modeling, and actionable in the marketplace today.

Mixed-Use Development Service Offerings

Understand the market-driven development opportunities broadly in the region and at the subject site. Our goal will be to drive quickly to a hypothesis about the highest and best use of the area, the volume and density of supportable development, and to create a framework for optimization of the program as the land planning, market, regulatory environment, and vision crystalize. For larger sites, RCLCO can provide market supportable phasing and programmatic recommendations.

We bring advanced financial modeling tools to help our clients understand development feasibility, return on value add, or to settle on land value for each proposed use. We bring advanced sensitivity analyses including Monte Carlo simulation, Sharpe Ratio or other measures to define a range of outcomes. Our modeling is organized as a decision tool to let the sponsor or investor compare the returns or downside risk of multiple strategies or program alternatives. While we are not licensed appraisers, we are able to provide a market supportable opinion on value using industry-standard methods.

Evaluate the public revenues generated by future development on site and in the neighborhood overall through increased property taxes, sales tax, and any other general fund revenues to both the City and County, and net of the public expenditures necessary to support the new development. Demonstrate the net impact over a 20 or 30 year timeframe by jurisdiction, highlighting other relevant factors such as new residents, jobs, and spending that would occur as a result of the development. The inputs/results of this effort will form the underpinnings of the public impact of the project which may be helpful to secure entitlements, or other support from the public sector.

While the client will likely will run the overall project pro forma internally, RCLCO will adapt a decision tool using our Linear Optimization (LinOp) methodology that will allow the team to evaluate program alternatives, density trade-offs, and other strategic direction questions in real time. This will ensure that the client ends up with a plan that optimizes financial outcomes.