Technical Reference

31710  —  Integrated Residential & Retail

Mixed-Use Developments (31700)
1

Overview

Integrated residential and retail developments combine a residential component, typically one or more apartment towers, with a retail component, typically arranged as a podium at ground and lower levels beneath the residential floors. The typology is the most common form of vertically integrated mixed-use development in the Australian market, ranging in scale from a small number of ground-floor tenancies beneath a single residential building, sometimes described as shop-top housing, to large-format retail podiums anchored by a supermarket or department store beneath multiple residential towers.

As a subordinate classification within the Mixed-Use Developments node, integrated residential and retail developments are distinguished from other mixed-use typologies by the specific combination of uses involved and by the particular structural, servicing and ownership considerations that arise from placing retail floorspace, which generates vehicle and pedestrian traffic, loading and extended trading hours, directly beneath residential floorspace, which requires a materially different amenity, acoustic and servicing standard.

The retail component of an integrated scheme is typically valued and let on a different basis to the residential component, and the interaction between the two — including anchor tenancy commitments, loading and servicing arrangements, and strata lot structuring — is a central consideration in the feasibility and ongoing management of this property typology.

2

Scope & Boundaries

This node covers:

  • Classification and characteristics of integrated residential and retail developments
  • Podium retail design and anchor tenancy integration beneath a residential component
  • Strata subdivision and lot entitlement structuring specific to mixed-tenure residential and retail buildings
  • Servicing, loading and acoustic separation considerations arising from the integration of residential and retail uses

This node does not cover:

  • Mixed-use development classification generally → refer to Node 31700
  • Transit-oriented development → refer to Node 31720
  • Detailed commercial and retail leasing law applicable to a specific tenancy → refer to Node 35320
  • Owners corporation governance generally → refer to Node 34310
Scope Note

A residential building with incidental ground-floor retail tenancies that do not include an anchor tenant or comprise a material proportion of the building’s total floorspace is more appropriately classified at Node 31130 (Apartments & Units), with this node applying where the retail component represents a material, separately let component of the development.

3

Key Concepts

Integrated Residential & Retail Development
A development combining a residential component, typically apartments, with a retail component arranged as a podium beneath the residential floors, with the retail component representing a material, separately let proportion of the development’s total floorspace.
Podium Retail
The retail floorspace arranged at the ground and lower levels of an integrated residential and retail development, typically incorporating a structural transfer level separating the retail podium from the residential floors above.
Shop-Top Housing
A smaller-scale form of integrated residential and retail development in which residential floorspace is located above a single level, or a small number of tenancies, of ground-floor retail, common in established suburban main street and town centre locations.
Anchor Tenancy Integration
The structuring of an integrated scheme’s retail podium around one or more anchor tenants, typically a supermarket, discount department store or similar large-format retailer, whose presence is intended to support the trading performance of smaller specialty tenancies within the same podium.
Mixed-Tenure Strata Structuring
The subdivision of an integrated residential and retail development into separate residential and retail lots under a strata or community title scheme, with lot entitlements, cost-sharing and use restrictions structured to reflect the differing servicing requirements and trading hours of each component.
4

Regulatory & Legal Framework

  • State retail leasing legislation
    State fair trading or small business regulatory authorities
    Governs minimum lease terms, disclosure obligations and rent review mechanisms applicable to retail tenancies within the podium component of an integrated scheme.
  • State strata and community title legislation
    State land registries and strata regulatory authorities
    Governs the subdivision and lot entitlement structure applicable to mixed-tenure residential and retail buildings.
  • National Construction Code
    Australian Building Codes Board
    Sets fire separation, structural transfer and servicing requirements applicable to a building combining Class 2 residential and Class 6 retail floorspace.
  • Local government planning schemes
    Local Councils
    Governs podium height, setback and design controls applicable to integrated residential and retail development within a local government area.
5

Practical Application

ScenarioApplicationOutcome
Developer structuring an anchor tenancy commitment ahead of a podium retail pre-lease campaignAnchor tenant trading requirements and loading dock servicing assessed against the residential tower configuration abovePodium design and anchor tenancy heads of agreement finalised
Strata manager apportioning cost-sharing between residential and retail lot ownersDiffering servicing, trading hours and acoustic requirements of each component applied to the strata cost-sharing scheduleStrata by-laws and cost-sharing schedule adopted reflecting use-specific requirements
Investor assessing a shop-top housing asset in an established town centreRetail tenancy mix and residential occupancy assessed separately, having regard to the smaller scale of the retail componentInvestment recommendation supported by a component-level performance assessment

Findings are presented on the basis of data and evidence alone.