How Do We Value Mixed-Use Land?
By Jenn Limoges, CCIM | March 17, 2021
With the most recent re-zoning or ‘up-zoning’ of mixed-use land, applying valuations without comps has all of us digging into the code to extrapolate the development benefits to both Seller and Buyer.
In reviewing the 2016 Bend Area General Plan we see that these new zones add in residential development opportunities, but are also creating some blow back on existing commercial uses. NAI Cascade brokers are identifying situations in which previously permitted uses are now non-conforming. Additionally, NAI Cascade encountered instances in which uses were omitted from the ME code, but are now being added back by council. In speaking with appraisers, they too are trying to find the fit. Overall, we agree that the valuation should be somewhere between industrial (IL) and Commercial (CG, CL), but we’re seeing high and medium-density residential thrown in there too.
For those of you not familiar with Mixed Use Land, here is an excerpt from City of Bend Code
“2.3.100 Purpose and Applicability.
- The Mixed-Use Districts are intended to provide a balanced mix of residential and employment opportunities to create focal points of activity in the form of mixed-use centers, nodes, or corridors. The Mixed-Use Districts support service commercial, employment, and housing needs of a growing community. The Mixed-Use District standards are based on the following principles:
- Ensure efficient use of land and public services.
- Create a mix of housing and employment opportunities.
- Provide transportation options for employees and customers and reduce reliance on the automobile.
- Provide business services close to major employment centers.
- Ensure compatibility of mixed-use developments with the surrounding area and minimize off-site impacts associated with development.
- Create economically successful mixed-use centers and transit corridors.