Comparing Legal Structures for Commercial Space in Mixed-Use Developments

This guide compares three legal structures for commercial space within mixed-use developments: freehold commercial ownership, a separate commercial condominium, and commercial units within a residential condominium. It examines the practical implications of each structure across issues such as risk, flexibility, control, cost, marketability, severance, shared facilities, parking, signage, easements, maintenance fees and development approvals. The comparison also considers how each structure may affect leasing, financing, property management and future redevelopment. It is intended to help developers and project teams understand the trade-offs involved when determining how commercial space should be legally structured.