While mixed-use projects have existed for years, the pandemic reshaped how developers approach them. By combining office, retail, multifamily and hospitality within a single site, they’re creating desirable destinations that hedge against market volatility while meeting evolving tenant and consumer demands.
"You want to diversify your capital by building multiple asset classes on a single piece of dirt," explains Sean McNamara, managing director and head of JLL's mixed-use property management team, The Mixx, about the appeal of work-live-play projects to developers and investors.
The strategy is paying off. According to JLL’s Lifestyle Office Markets report, integrated projects significantly outperform traditional office buildings: 76% leased at delivery compared to 70% for standalone projects. They also reach 90% occupancy twice as fast and command a 32% rent premium over the broader Class-A market.
Flexible revenue streams
McNamara notes that mixed-use developments can offer diversification from market risks. Hotels and multifamily can reset rents quickly, cushioning against inflation, while office and retail leases offer stability. While the office sector has yet to fully recover from the height of the pandemic, bringing these assets into mixed-use developments balances the risk across the portfolio. Further, cities with live-work-play spaces saw less urban flight and healthier in-store retail.
But diversification alone doesn’t guarantee success. How the components work together can be just as important, explains Jacob Rowden, senior manager of research at JLL. “The most successful developments separate themselves with the overall cohesion of the project and how well the various components overlap with one another,” he says.
Managing operational complexity
Developers must approach these environments holistically, McNamara notes. Restaurants may want foot traffic, but residents prefer calm. Office tenants value efficiency, while hotels push for programming that generates buzz. He says the proper mix can be accretive, with all tenants benefitting.
Rowden cautions, however, that projects can’t take the same approach that has worked in the past. “The success of integrated projects since 2020 has changed from the previously monolithic approach,” says Rowden. Even single-use properties can borrow from the mixed-use playbook, layering in activation or retail to strengthen their appeal.
JLL points to the approach of their recently launched team, The Mixx, a dedicated mixed-use property management division led by McNamara. Positioned as a startup within the larger organization, The Mixx combines the global resources with the agility of a specialized team to bring strategic placemaking to complex projects.
Sports and entertainment anchors
Sports and entertainment venues have emerged as powerful anchors in successful mixed-use projects, McNamara says. They create 24/7 ecosystems that attract office tenants, residents, and retailers by offering something for everyone.
"What makes mixed use successful is that you go for the game, but you stay and come back for everything but the game," McNamara says.
Projects like The Battery Atlanta, a mixed-use development that’s adjacent to Truist Park, the home stadium of the Atlanta Braves, illustrate how intentional programming can extend activity beyond game days. With restaurants, hotels, and shops, and even medical offices, it delivers on the tagline, “Come early, stay late,” McNamara says.
As tenant expectations evolve, mixed-use developments are proving to be more than a trend. By blending asset classes, balancing risk, and fostering spaces where people want to live, work, and gather, they’ve become a model for value creation against a volatile real estate market.
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