Does the perfect mixed-use development exist?

According to our well-placed, extremely experienced set of guests at our latest roundtable in Manchester, mixed-use is open to interpretation.

For developers, it’s important to think of places, not buildings. For planners, consideration must be paid to macro masterplans, and micro communities. For architects and interior designers, a whole range of demographics should be supported - not just young professionals. From an operator’s perspective, rents have to be attainable in the lettable retail or F&B units for independents to create interest. Plus activation is crucial. Across the board, storytelling is key.

Has the process for developers changed over time? Yes. Have investor expectations changed over time? Yes. Has decision making in planning changed over time? Yes. Have the roles of architect, and interior designer become more complex over time? Yes. And it's all in response to a shift in how people live, work, and play.

Whilst there've never been more challenges for the property sector, there's clearly never been so much opportunity. Particularly in Greater Manchester and its surrounding areas - from Salford to Stockport.

Here we share a round-up of the evening’s key takeaways.

Our guests

The big picture

To begin, chair, Material Source director, David Smalley, asked the group to explain, “What is a mixed-use development? Does it need to consider: live, learn, work, play?”

“It’s an interesting question”, replied Phil Hepworth, director, AEW Architects, “because we tend to be talking about town centre regeneration, certainly over the last probably five, six, seven years. And actually, what we're doing depends very much on where we are and what the town needs. And we're looking at it in the round.

“When we talk about mixed-use development, are we talking about the red line that's around the little site we're looking at? Or are we talking about the bigger picture?”, he queried, highlighting a couple of examples from AEW’s current portfolio.

“We're working with Oldham Council at the moment on their shopping centre, repurposing it, turning retail space into office space. The bigger picture piece included Muse and their residential aspirations. So, we were a catalyst. We were the first bit of that jigsaw puzzle, the sliding squares, to make the other bit happen”, Phil added.

In summary on this point, he said: “I do think the perfect mixed-use development exists. But it’s how you open the gates. And that’s where we start with councils now – we zoom out and assess the scope of the playing field.”

Catalina Ionita, senior architect, Chapman Taylor, agreed. From her own experience of projects, residential would “traditionally come first” in a mixed-use development, she said. “The catalyst tends to be BtR, PBSA, and co-living in the UK right now. And then there are the other things that support the residential product. This is important because if you look at one sector in isolation, then you don’t really create a very healthy or coherent community.”

For this to come to fruition, Catalina believes there’s an “educational piece” that must be relayed to the client, so they “don’t just think – as Phil said – about the red line boundary, but about the wider scope or opportunity for activation.”

People make the place

“Does anyone have any examples of a mixed-use development that’s working well?” David asked.

John Williams, founder & director, SpaceInvader suggested Stockroom in Stockport. Described as a ‘multi-purpose events space that hosts a diverse year-round programme of activities’. And Salford’s Eden building, which SpaceInvader worked on for client, Muse.

Interesting that neither example, David noted, includes residential. The main activation points in these instances being community-based events, wellbeing, and work.

Ashley Taylor-Watts, director, Define Architects, thinks that rather than the mixture of product – whether residential, workplace, retail, or F&B, it’s ultimately “the people that make the place”. With this in mind, it’s important to zoom out, as Phil and Catalina agreed, to consider whole communities. Not just individual developments. That’s the only way to ensure success for mixed-use, Ashley said.

Offering a developer’s perspective, Ben Scandrett, development director, Zentra Group, suggested it can sometimes be difficult to “start regeneration with a residential scheme”, though that’s often the Council’s aspirations, he said, and there may be pockets of market failure that warrants Council intervention / collaboration.

On the current market landscape, Ben added, “I think there's been quite a few minibus trips around Altrincham market which can be a challenging benchmark and certainly not a copy and paste for all the Northwest Authorities. Some northern towns are subject to really challenging environments in terms of retail voids and declining footfall so expecting to drop a successful residential mix into that as it currently stands can be difficult.

“So, it's then how can they [the council] intervene and start to promote residential? Getting to the heart of what makes that town special and unique is critical alongside the essential matters of public realm, hard, soft landscaping - cycle, pedestrian connectivity, permeability, and access via all transport modes."

Speaking more specifically of Zentra Group’s One Victoria project, David asked whether that would be considered mixed-use?

“Yes. The scheme consists of 129 residential units and three and a half thousand feet of commercial space. The scheme benefits from some great views out over Cheetham’s college of music.” Ben said, though that it was an initially challenging site with its proximity to Listed network rail infrastructure.

But with proximity to the city’s retail and Manchester College’s success bringing a critical mass and footfall, the commercial element of the scheme is “looking more positive by the day".

"The next step will be aligning the retail offering to the user community and having complementary uses that aid the final phase of the sales stage before we PC.”

On the subject of challenges, Ashley commented in reference to a different site that she and Ben visited together, you can, “inherit a design essentially with everything already premeditated.”

When this happens, “plug and play” is required, Ashley suggested. But decisions must still be made as to how to activate the site, and it can be hard to get right when the agenda has already been set.

Agility & adaptability

Further reflecting on what the notion of “mixed-use development” pertains, Ellie Philcox, director, Euan Kellie Property Solutions, feels it’s something that’s changed over time in response to how peoples’ lifestyles have altered. She commented, “There’s been a real change in peoples’ day-to-day living patterns – particularly in cities, where there’s an agile population. Spaces, both on a micro and macro level have had to change too. And as a planner, the challenge is how to best navigate this through the planning system, which can often be quite clunky.”

A different way of thinking is required, suggested David. Though the built environment is a traditional sector at heart. “Are the systems that exist holding us back?”

Potentially. And bespoke is what people want, Natalie Gray, design manager, LOFT, believes. “Once upon a time, you could build a multi-storey tower of apartments and that was enough. But I think now people are wanting more from that living experience. There’s been a merge in home, work, social life. These developments have to promote community, and they need to enhance peoples’ individual living experience.”

“Can these types of development only work in cities?” Richard Olver, sales director, Vepa UK, asked.

Natalie thinks outside of city centres, peoples’ opinions are more likely to be divided, using the example of Stretford.

A product for the future

Turning to Catalina, David asked about Trafford Wharfside, a £250m mixed-use regeneration scheme developed by Cole Waterhouse and designed by Chapman Taylor, which was just last week unanimously approved by Trafford Council, and promises to “pave the way for the delivery of a vibrant new Build-to-Rent community that will bring substantial social, economic and environmental benefits to the borough.”

“This really does sound like your ideal live, work, learn scenario?” he prompted.

“Yes, there was a lot of working with the client to really understand the wider context to appropriately divide the scheme. It’s located next to Old Trafford, and there’s the university football campus, so we anticipate a big community of students wanting to live in that area.”

Whether Trafford Wharfside is technically mixed-use, though, Catalina said is up for debate considering most of the amenity supports the residential offer. “I am unclear whether in planning policy terms it necessarily classes as mixed-use. But I think it's a really forward-thinking way of looking at what living, working, and learning could be as a product in the future.” The fuel for this came from Chapman Taylor’s global experience, Catalina believes. Especially its Madrid studio, where flexible living in terms of tenancies are more widely available.

She added, “Is there any such thing as the perfect mixed-use development? I don’t know. But I think it has to be fit for the context – and that signifies perfect to me, because if it really works within that particular setting and it responds to its needs, it's activating something that could otherwise be left derelict.”

Here, now, next

On the topic of activation, Phil said that footfall is “massively important” to mixed-use. Referencing a conversation he’d had earlier that day with fellow roundtable guest, John Williams – regular project collaborators – Phil shared they’d been looking at “a day in the life” to work out how spaces should be occupied. Though with the aforementioned rate of change happening in peoples’ lives, Phil thinks we can only look short-term – a five-year period.

Concurring with Natalie’s point around elevated user expectations, he said, “You can't just build apartments anymore. You've got to curate them. Everything needs to be curated. People want to live in different ways, and they want to experience different things.”

“It’s demographics”, added John. “If you think about the young professionals that might occupy an apartment right now, and what they want today, they’re fit and active, they want to go out and have a good time with their mates. It’s about F&B, it’s about experience, it’s about the touch points.” The other thing to consider, John said, is that people know what good looks like now, more than ever. Of course, thanks to social media. And particularly Instagram. “People know what good is. So, there's a really high benchmark to aspire to.”

This idea of aspiration for the now has to come with some future-gazing, Ellie believes though, or challenges could lie ahead. “I think there's a challenge between getting consent for the concept of a scheme and how you envisage that to be. And then actually, fast-forward to when the scheme's delivered – that might be four years later. It can be difficult to tie up all the expectations from the client, investors, and the local authority in that time.”

Coming back to the question at hand here, Ellie said, “Considering that question as to whether the perfect mixed-use development exists – to me, that would be a scheme that is occupied, and that’s being used.”

Agreeing nods came from around the table.

“There’s no benefit in having any kind of vacancy”, she added.

Independent authenticity

For Ben, a true mixed-use development should offer something for all stakeholders within a community. If it doesn’t, it’s disappointing, he said. “Whatever demographic, there should be something within a redevelopment proposal that satisfies and looks after all parts of the community.”

“It’s authenticity, isn’t it?” suggested Natalie. “Communities don’t want the same high street brands or retailers. What they want is that more independent, authentic feel. How you balance that, though, I guess is tricky.”

“We hear so much about experience now, don’t we?” replied David, “And the bar is constantly being raised?”

Phil agreed. A developer’s reputation is on the line now. They are known brands – with their logos plastered on the buildings, he said. On the other side, renters can move fairly quickly if they want to. So, if somewhere isn’t very good, you can just move on. Then you've got somebody like a developer who's sat there - or their investors going, ‘Well, what do we do with this now?’” “It’s more competitive now”, Natalie added.

Catalina pondered whether this fast-moving rental market in city centres is a good thing when it comes to creating solid communities though. “The transient nature of the city keeps it vibrant and interesting and provides us fuel as designers. But I think we should be thinking more with the longevity in mind, to have more of a permanent community in the city centre, which I think we're failing in currently”, she commented.

In this way, mixed-use could be used to positive effect she feels. “I think that's why more mixed-use developments are really key for driving forward a healthier society because we do want elderly people to live in the city centre. We do want younger families to have a place to raise their children in the city centre. And currently, we're just thinking about young professionals.

“It’s great to create that cool branding behind a development. And we can all benefit from it as a sector. But we should also try to educate our clients about the more sustainable growth of a city.” This has been achieved in other parts of Europe, Catalina adds. Where people – young and old – live in cities. The result is a civic pride, and a place keeping aspect that’s driven and nurtured by the diverse communities. “I think that’s what makes mixed-use.”

In addition to the place keeping, and obvious wellbeing benefits here, for building activation, a variety of age groups means there is likely to be occupation day and night.

“Is there anywhere in Manchester achieving this?” David asked.

New Islington and Ancoats, Catalina and Ashley agreed. Ellie also highlighted Deansgate Square. The reason these places have been successful has not come about by chance, Ellie said. Rather, they’ve been “driven by strategic regeneration frameworks. There's been a clear strategy in place from the city council, which has been in place for a long time. It doesn’t happen by accident.”

The 'new Berlin' and beyond

As was first discussed at our recent seminar on Greater Manchester’s Property Outlook, Stockport – referred to as the “new Berlin” by Natalie came up as a talking point.

Phil has been working with seminar panellist, David Fairclough of Progressive Living, and Shannon Conway of Picture This on an amenity-lite BTR scheme with 245 units in the borough of Stockport, which Phil said has been “rediscovered” – “people love it”.

The concept for the scheme is that it’s for all ages, and it’s accessible. “We’ve got 20% three bed apartments, 10% apartments adapted for wheelchair users. It’s for a true mix of people. The ground floor is community-centred. Food can be grown on-site, there’s a roof terrace. It’s low energy. “That in itself is an apartment building, but it’s part of the wider regeneration plans”, Phil added, going back to the point about nothing being left to chance for long-term success.

Regeneration is not always embraced as it has been in Stockport, Phil said. For a market hall project in Accrington, again with SpaceInvader, the reaction from local residents has been mixed. Based on the perceived notion that people could be priced-out. “There’s a delicate balance”, he commented, “between getting return for investors, and doing the right thing.”

Flexibility is required, Ellie added. From the market, the local authorities, and peoples’ mindsets. But Ben doesn’t feel as though much flexibility exists within the planning to delivery process. And opting for something outside of the norm can lead to failure.

Catalina said if we don’t try to do something different though, we could fall into the danger of copy and pasting. Both Altrincham Market and Kampus were highlighted as serving clients with inspiration about what they might like to achieve themselves. Again, it’s back to context, Catalina stressed.

“Kampus is a destination, that’s why it has so much footfall”, she said. “They were brave to do something new though, there was no guarantee.”

Natalie talked about Ancoats’ Pollen Bakery, and the balance that needed to be struck in making the rent affordable enough to attract an independent operator. When that happens, there’s a positive effect, she said. "It gives small businesses an opportunity. And the community something different.”

Returning to the pitfall of cut and paste, David asked John how often clients come with a preconceived idea of what they want.

“Quite often it’s a case of sifting through what they think they want and finding out what they actually need. Then we’ll write the brief. We enlighten them. And the way we do that is through storytelling. “You've got to start from nothing and build up this great story until you've got something that is so contextual, so individual to them and about them and the surrounding community. Whether that's a commercial hotel, mixed-use, whatever. It encompasses all of that.”

“Is storytelling a device everyone uses?” David asked.

“You’ve got to in design, haven’t you?” said Natalie. “Because it's how people connect with it. And it gives you a reason to say, ‘This is why we're doing this’.”

“It’s how we communicate our ideas”, Catalina added.

Looking back to look forward

“The story involves so much more now, doesn’t it? How’s that changed in the last 20-years?” David asked.

“Decision making in planning has changed quite a lot during my time”, Ellie answered, “I work mainly on large developments so inevitably they are decisions which are made by a planning committee, which ultimately is a body made up of people with political drivers. In Manchester and Salford, however, it’s always been pretty stable. In other areas though, it’s less stable. And so that storytelling part is really important. It informs a communications strategy. Perhaps going back, things were more tokenistic.”

For Natalie, the likes of Urban Splash disrupted the market in terms of this storytelling piece. “From a developer point of view, they came in quite disruptive and with a strong message. And I think, back then, mixed-use was perhaps not in their mindset. But I think because they made places better and people wanted to live there, things grew around it.”

Phil agreed. “I think if we stop talking about buildings and start talking about places.” He also agreed with Ellie’s point on tokenism. "I remember being asked, ‘how small can you get these apartments?’ For the developers that we worked for, it was just about flipping sites. And that's the way it was when I started.”

One of the reasons things have changed, John suggested, is that with sustainability, accessibility and ESG becoming more prominent, “people now genuinely want to achieve those things because it's the right thing to do. Whereas I think 20-years ago, it was probably a bit more about money. But I think there's a genuine drive from developers and people in that position now to achieve those things.”

Ben agreed, adding, “There's a clear responsibility and legacy piece now that you can't hide from. Everything is in the public domain. You're only really judged on your last development. And if you do cut corners and do things piecemeal and don't consult or engage, then it’s going to be very difficult to start talking to the next authority as part of a partnership collaborative deal. So, you've got to do it right.”

Not only this, but investors demand these considerations from the outset, so it’s come full circle in that respect, Phil said. “As architects, that gives us leverage, because we must do it.”

“What does the opportunity look like for the next 10-years?” asked David, bringing the conversation to a close for now.

For Catalina, it’s the potential for public/private partnerships for splitting costs, de-risking, and accountability for upkeep. “We have some really great examples in Bury, Stockport, MediaCity…” John queried whether we should be looking further afield to NEOM in the Middle East, an arcology and planned city being built in the Tabuk Province in Saudi Arabia. “Can you connect Bolton, Oldham to the city really successfully to create that one big place? How do we unlock what they have done in the desert in a post-industrial city with constraints and contamination?” Catalina questioned whether the context would be correct to transfer a concept such as this.

Ben is currently working in Manchester’s Holt Town – “that's going to need a lot of work and intervention, but Manchester will deliver. There are five land ownerships in the main master plan area. And a master architect has been brought in. As well as design codes. They're making sure that whatever's proposed has a sprinkling of reality and commerciality to it. So I think that really strong vision and leadership from the council is critical to making that happen.”

As was highlighted a few times during the chat, Manchester’s strength lies in its unwavering vision, the group feel. And this means schemes are brought forward and delivered if they align. “Schemes can only be successful when they exist”, said Ellie. “And that’s down to leadership”, added Phil.

The conversation now flips to Glasgow for our next seminar, Scotland’s Property Outlook. Get your tickets here.

A huge thanks to all our guests for their insight shared, and to our supporters for this event, Forbo Flooring Systems & Vepa – both Partners at Material Source Studio.

All image credits: James Maddox