Mixed-use discouraging tenants?

[Bryan Johns]

In a recent discussion with a realtor (who's been doing this a lot longer than me), I mentioned that I'd like to develop a ~20,000 sqft two story building. Per zoning, the first floor could be professional office/medical space and the second floor and above would be multi-family. (There is a need for both in this area.)

He immediately pushed back, saying that the first floor professional tenants wouldn't want this right above them for various reasons (sharing parking with renters, being underneath windows where renters have hung their plants, decorations, etc.) 

Does anyone have experience in this space? Is it a bad idea? How do you effectively design a building like this that attracts both professional tenants and renters?

[Greg M.]

I have no experience with this, but am very interested in an answer. In my area, these buildings are becoming much more popular as the city allows a lot of variances when building them.

Most of the buildings I've seen are not medical, but generic retail. No restaurants either. Does your area require "professional" instead of retail? From what I've read, the retail portions have been rented out before the living units above. I can't say that is standard way or not, but I've seen that reported several times. 

Every project I've read about, the parking is separate for renters and customers. As for hanging plants, that sounds like the realtor is looking for problems. This would be handled like at any building, it's not allowed per the lease (and probably law). If they do it, you remove the plant and then the tenant if necessary.