Mixed use in real estate development, highest and best use analysis study at Besiktas–Etiler region

A substantial part of the structures constructed in the city centers according to the then-current needs of the periods is losing their functions of use and becomes idle for the national economy. Creation of qualified living spaces accommodating various functions of use under their structure through transformation of such immovable properties that have become virtually non-functional with their current usages not reflecting the most efficient and effective use of the related real properties contributes both in the development of the region on micro scale and the development of the national economy on macro scale. Considering the social structure of Turkey in the recent years, it is seen that the people in the high-income group prefer housing estates that can meet various needs under their own structure as their living environment. As a result of the studies conducted, an important property emphasized in the public promotions of modern building complexes is that what is purchased is not only a house that will meet the need for shelter, but also a "lifestyle". The people buying their houses in such complexes purchase not merely a flat, but also an added value created by the social facilities located in such complexes. In this study, the current industrial developments and the trends in the sector will be reviewed through the real estate industry analyses in Etiler region; and as a result of the market and sector researches conducted considering the performances of the model mixed-use projects located in the periphery of the project area, a new mixed-use real estate project will be developed. Project performance-oriented investment analyses will be performed for the developed project by trying different functions under the structure of the project and the evaluations reached as a result of such studies will be provided. Calculations were made in relation to the potential cash flows that will be created in case that the building located on the studied parcel in question is demolished due to expiration of its economic life span and replaced with a new mixed-use project constructed in line with the current development plans and legislation. In the light of sector data and the site surveys conducted, an investment analysis comprising offices, residences, retail stores and kindergarten functions under its structure has been studied for a mixed-use real estate project. The reason why the kindergarten function has been included under the scope of the project is that it has been envisaged that the kindergarten can serve not only the region of such a class A office market like Etiler / Levent / Maslak region, but also its close periphery; and it will constitute a function increasing the attractiveness of the project and raising the demand for this mixed-use project. As for the kindergarten function, the leasing models of the kindergartens have been reviewed in general. The project development method and the turnover and cost and expense analyses and calculations were performed for the project accommodating versatile functions under its structure; and thus, the impact of the incomes to be derived from different functions of use on the project profitability was evaluated.