Multifunctional complexes today.
Nika Pologova
The main trend in the real estate markets of Europe and the United States, followed by the development of the markets of large Russian cities, can be called a gradual shift in preferences towards the construction of large mixed-type objects.
Multifunctional complex — a real estate object (or several objects) that combines the premises of two or more operational purposes (shops, office space, entertainment venues), in which commercial and residential functions can be combined. In this case, as a rule, one of the functions is the main one.
Today in megacities there is an acute problem of shortage of land plots allocated for development of objects of any type. The frantic pace of life, the imperfection of the transport system and many other nuances of life in cities with a population of over a million force us to look for new solutions to the problem and a way out of the current situation. In this regard, the active interest shown in universal multifunctional buildings by both real estate buyers and tenants, as well as market players, is understandable.
However, the very concept of multifunctionality does not always have a real basis for such a name. Until now, the most common were the so-called retail and office complexes (a non-residential facility in which the main function is retail, while part of the building is occupied by office premises), or vice versa: the office part dominates with a relatively small retail component. Moreover, both functions of the object, as a rule, are neutral in relation to each other.
Several years ago, it was precisely such areas (one- or two-directional) that had the most attractive characteristics in terms of payback periods and construction costs.
These could be, as already mentioned, shopping and office centers, hotel and shopping or hotel and office complexes, shopping and entertainment or multifunctional residential complexes.
Their so-called limited multifunctionality, i.e. the presence of a dominant and one less developed module of additional space, today no longer meets the market requirements. Therefore, the emergence of truly large-scale multifunctional complexes with a rich infrastructure: an entertainment part, a hotel, apartments, etc. is one of the latest trends.
The creation of multifunctional complexes is due to the following advantages over highly specialized centers:
• efficient use of land and saving resources (in particular energy resources);
• reduction in unit costs for creating an object due to its scale;
• the possibility of flexible repurposing with increasing competition in the market;
• the target audience has several reasons for visiting the object;
• high investment attractiveness of the project, due to the reduction of risks due to the diversification of investments (investment in different types of real estate).
However, the construction of such objects brings with it not only positive features and the possibility of resolving the problem, but also additional difficulties that most often arise during their creation:
• the choice of the concept of the complex at the design stage (one should take into account the construction period and possible changes in the market during this period);
• zoning of the object to avoid possible conflict of functions);
• application of a well-thought-out strategy for positioning and further promotion of the object;
• it is necessary to take into account the specificity, cost of operation and management of the object, constant maintenance of the building at a quality level.
It is obvious that the presented segment appears to be one of the most complex on the market: projects of multifunctional buildings require especially careful development. However, both in the capital and in the regions, there are already a lot of projects for the construction of multifunctional complexes.
Despite the fact that the hotel component appeared in multifunctional complexes later than others, it will in the near future become an integral part of the multi-complexes under construction. This is also due to the development of tourism and business activity of the state, accordingly, the progressive shortage of space to accommodate people, and, as a result, a successful investment of capital in an object that requires long-term investment, but as a result generates income that exceeds the return on the business center or its retail part .
Today in Moscow there are several such facilities, which include hotels. These are the International Trade Center, the Swissotel Krasnye Holmy complex, and the Radisson-Slavyanskaya Hotel. In 2008, it is planned to put into operation the Moscow Hotel, which can rightfully bear the definition of a multifunctional complex, because will accommodate several zones for different purposes at once.
It is expected that the largest projects will be implemented in the Moscow City business district, where there is also a large hotel component.
Multifunctionality prolongs the profitability of the facility. Coordination of several components in one object will allow you to receive income from the complex at different stages of its development (first, profit will come from retail premises, then from offices and then from the hotel component, which will ultimately become the fundamental financial flow).
With proper calculation of all components at the design stage (from the design features of the complex as a whole to the final management and ownership of the building), the multifunctional complex should ultimately represent a kind of city, maximally providing its “residents” with the necessary conditions for existence, which contributes to the growth of the complex’s popularity among target audience. Investors, in turn, will receive a facility that will generate profit at all stages of the project’s life: from the launch of the first stage (with proper planning, the facility can be launched in stages) to the period of “obsolescence” of the areas and their partial repurposing.
Assessing the above, we can assume that that the construction of multifunctional complexes today is rather a necessity and, as a result, an inevitability, which allows, on the one hand, to solve the issues of developing the infrastructure of megacities, and on the other hand, to allocate capital to investors that will bring profit in the