The Benefits of Mixed-use Developments in Today's Economy

Walk through the most dynamic neighborhoods in cities like Miami, Austin, or Nashville and a clear pattern emerges: people want to do more in fewer places. They live in apartments above cafés, work in offices or coworking hubs down the street, shop for groceries a block away, and meet friends at a restaurant or rooftop bar around the corner. This is the essence of mixed-use development, and it’s become one of the most resilient and investable asset classes in real estate.

Why demand is shifting

For decades, zoning laws and real estate practices kept functions separate: offices downtown, housing in the suburbs, retail in designated strips. But shifting demographics and lifestyle expectations have changed the equation. 

Younger generations, in particular, prize convenience and community over long commutes. The rise of hybrid work has only amplified this preference, making proximity and flexibility top priorities.
This shift shows up in development pipelines. 

In many U.S. metros, around 20% of new commercial and multifamily projects in the last decade included a mixed-use component. That share continues to grow as both tenants and city governments look for smarter land use and more vibrant communities.

Performance that outpaces traditional assets

The financial case is equally compelling. A CBRE study of 19 markets found that office vacancy rates in mixed-use districts averaged 18%, compared with 22% in traditional office-heavy zones. That difference translates directly into more stable cash flows for landlords and stronger underwriting for investors.

Mixed-use projects also deliver what researchers call the “halo effect.” Studies suggest surrounding property values rise 5 to 20% once a mixed-use project is established, creating a ripple of wealth that benefits both investors and communities. And because income streams are diversified across residential, retail, office, and sometimes hospitality, these projects tend to maintain occupancy rates above 90%, even in downturns.

Institutional recognition and ESG appeal

It’s no surprise that institutional investors are increasingly building mixed-use into their portfolios. The asset class combines scale, diversification, and long-term defensiveness – all qualities that pension funds, endowments, and sovereign wealth funds seek.

Mixed-use also aligns well with environmental, social, and governance (ESG) goals. Walkable, transit-connected developments reduce commute times and carbon footprints. They encourage local commerce, strengthen community ties, and often integrate sustainable building practices. For investors with ESG mandates, these factors add another layer of appeal.

Public and private alignment

Cities and municipalities are leaning in too. A study of nine mixed-use projects in one U.S. city showed net fiscal contributions of more than $4.4 million annually, with gross revenues exceeding $12 million. For local governments under budget pressure, mixed-use is attractive not just for the tax base, but also for the placemaking it creates: active streets, thriving businesses, and safer, more vibrant neighborhoods.

That alignment between private investment goals and public priorities helps streamline approvals and reduces friction during development. It’s part of the reason why mixed-use has moved from niche to mainstream in planning circles.

More than assets, building communities that last

The numbers are powerful, but they don’t capture the full story. A successful mixed-use project feels alive. It becomes a hub where people meet, linger, and build connections. That vibrancy translates into tenant loyalty, stronger rents, and more durable returns.

Investors are increasingly recognizing that projects designed to foster real community are more resilient than those that treat buildings as interchangeable commodities. Mixed-use sits at the center of that recognition.

Why Gilberti Group invests in mixed-use

At Gilberti Group, we view mixed-use developments as more than a trend. They are a cornerstone of our investment strategy: assets that combine yield and appreciation potential with long-term relevance. By focusing on projects in high-demand locations, we aim to capture both financial performance and the intangible value of building communities people truly want to be part of.

In a market defined by volatility, mixed-use real estate offers something rare: stability without sacrificing growth. For investors looking to balance defensiveness with upside, these developments are essential.

If you’d like to learn more about how Gilberti Group approaches mixed-use investments, we invite you to connect with our team. We’re always happy to discuss opportunities and share our perspective on how these projects can fit into a diversified portfolio.