Why is Nobody Building Mixed Use in a Mixed Use Zoning District?

[Robert C.]

Any theories?

I've been looking at building projects within Mixed Use zoning districts in my town. Surprisingly, it seems to me that nobody is taking the city up on Mixed Use zoning incentives. Developers are instead only building residential (either townhomes or apartments). By building mixed use, you get better FAR, smaller setbacks, and more height, so what am I missing? I would think it would be a no brainer.

I've thought of a couple reasons, but I thought I would see if anyone had some input first to see if our ideas sink up. Thoughts?

[Joshua Baker]

@Robert C. Developers, at least the ones I work with, are becoming less interested in Mixed use (read commercial/retail) because it's becoming difficult to get solid leases. I recently consulted on the construction of 250k sqft of office/retail that has been fully permitted for 7 months now with no outlook of being built due to leasing difficulty. SFR and MFR are killing it currently and pose much less headache when it comes to getting them to cash flow or pay out. Hope this helps!