Mixed Use Cross Subsidy Calculator

Mixed-use economics depend on cross-subsidy between uses.

Residential NOI

Retail NOI

Office NOI

Parking NOI

Common area cost

Blended NOI

$3,800,000

Largest contribution (residential)

$2,500,000

Commercial share %

0.4%

How the math works

Gross = sum of each use NOI. Blended = gross − common area. Commercial share = retail + office ÷ blended.

$2.5M + $800k + $600k + $300k − $400k = $3.8M blended NOI. Commercial ($1.4M) = 37% share.

How to Use

Enter residential NOI.
Enter retail NOI.
Enter office NOI.
Enter parking NOI.
Enter common area cost.
Read blended NOI contribution.

Frequently Asked Questions

Why mix uses?

Mixed-use (residential + retail + office) captures synergies: (1) retail benefits from on-site residents, (2) residents benefit from convenience, (3) office benefits from retail lunch/happy hour, (4) parking shared across uses (high office daytime, low evening, residential evening). Urban infill increasingly mixed-use. Suburban: growing but slower. Retail alone struggles; mixed-use retail often thrives.

Typical revenue mix?

Urban mid-rise mixed-use: 60-75% residential revenue, 15-25% retail, 5-10% office, 5-10% parking. Commercial-heavy: 50% office, 30% residential, 20% retail. Residential-heavy: 75-85% residential + 15-25% retail. Each use has different cap rate: residential 5-6%, retail 6-7%, office 6-8%, parking 6-7%. Blended cap rate typically 5.5-6.5% in strong markets.

Common area allocation?

Lobby, elevators, corridors, loading, security, amenities. Common cost $2-8/SF/yr. Allocated by: proportional SF, prorated by use (higher allocation to high-footprint office), utility metering (actual usage). Disputes common in mixed-use. Clear allocation methodology in organizational docs essential. Institutional operators have standard methodologies; amateur mixed-use operators often create disputes.

Use mix decisions?

Retail on ground floor (revenue driver + foot traffic). Residential above (tenant demand, often rent premium for mixed-use location). Office on intermediate floors (if market supports). Parking below grade or in podium. Amenities on roof or podium deck. Avoid: too much retail relative to market demand, office in soft market, over-parking (expensive + unused). Market analysis before design matters.