RICHMOND, VA—Can you live in the city and the suburbs at the same time?

At first glance, the answer seems like an obvious “no,” yet a current real estate development trend suggests otherwise.

Throughout the United States, we have seen a recent surge in suburban mixed-use projects—developments that incorporate a variety of spaces for residences, retail and offices. While city centers have long used this integrated approach, suburbs traditionally boast separate, distinct areas of homes, strip malls, shopping centers and office parks.

That is changing, and we are now seeing mixed-use development alter the face of the American suburbs.

To understand the trend, let us first look at what has transpired in many of our cities.

Decades ago, we saw an exodus of residents from cities driven by a number of factors, including the advent of interstate highways, increased crime and blight in the inner cities, and so-called “white flight.” This led to an abandonment of downtowns, and an even greater increase in social problems in these areas.

Thankfully, developers realized that our cities still held great promise as centers of commerce, culture and activity, and an urban renewal trend that continues today was born. In particular, mixed-use development, with its “live/work/play” appeal, brought residents back to downtowns. These trend-setting residents found shorter commutes, and the convenience and excitement of having retail and entertainment steps away.

Demand for this product has exceeded supply, and the cost to live in the most popular downtown mixed-use communities has become prohibitive for many, particularly millennials who are starting careers fresh off a recession.

As a result, the live/work/play model has extended to the suburbs. These developments offer the best of both worlds, with residents enjoying the newer infrastructure, ample parking and safety associated with suburbs along with the convenience, entertainment and activity of a vibrant city center.

These mixed-use suburban projects have been most apparent outside of the country's most sought-after cities, such as Boston, Washington, Dallas and Los Angeles. The Boston suburb of Somerville, which has seen a surge in mixed-use development, is largely inhabited by millennials, with 43% of the population ages 20 to 34, according to a recent article in the Boston Globe.

Likewise, the Washington, DC metro area has experienced an explosion of mixed-use suburban projects, thanks in part to the expansion of public transit. Northern Virginia has seen a subset of suburban mixed-use development known as TAD, or transit oriented development. The Metro's Silver Line expansion to Tysons Corner and Reston, Va., and proposed expansion to Dulles International Airport, has given rise to some of the region's most prominent mixed-use communities, including Dulles Station and Reston Town Center.

Traditional mid-market cities also have seen mixed-use projects extend beyond the downtown core. In Richmond, the region has seen the arrival of projects such as West Broad Village in the western suburb of Short Pump and Libbie Mill in nearby Henrico County.

So, where does the mixed-use market go from here? We can say with confidence that demand for the live/work/play model continues to exceed supply. Thanks to the rising cost of living downtown and the emergence of millennials in the post-recession workforce, it is safe to assume that mixed-use will continue its expansion into the suburbs, and the line between downtown and traditional suburban living will be further blurred.

Ryan Jenness is a Virginia native and real estate partner at Hirschler Fleischer. He may be reached at rjenness@hf-law.com. The viewe expressed here are the author's own.

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Live/Work/Play 2.0: Mixed-Use Meets the Suburbs

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