Assessment of Direct Investment in a Mixed-Use Real Estate Development

You are a portfolio manager responsible for evaluating a proposed acquisition of a commercial real estate property in a rapidly changing urban market. The property in question is a mixed-use development comprising office, retail, and residential spaces. Recent market trends indicate a shift towards remote work, prompting concerns about the demand for office spaces, while e-commerce growth has amplified pressure on traditional retail outlets. In addition, a nearby university has announced plans to expand, potentially leading to increased demand for housing.

Within the context of direct real estate investment, assess the factors that should be considered in making a final investment decision regarding this property. Discuss the potential impacts of market conditions on the projected cash flows, and evaluate strategies that could be employed to mitigate risks associated with each property segment. Support your analysis with relevant financial metrics, potential exit strategies, and examples of how similar properties have performed in this environment.