Living, working, and playing 

New York City may be vast, but residents of the Hudson Yards neighborhood on Manhattan’s West Side have all of life’s conveniences (and luxuries) practically on their doorstep. The first-ever LEED Gold Neighborhood Development sits on 28 acres and features modern residential towers, office spaces, more than 100 restaurants, the Shed Cultural Center, leading stores, fitness services, and medical facilities. The neighborhood also has easy subway access and acres of public open space for recreation and exercise. 

Hudson Yards is just one example of a successful mixed-use development, a trend that continues to expand. These popular communities offer people a place to live, work, shop, dine, engage in wellness, and be entertained. Successful mixed-use properties like Hudson Yards provide proximity to public transportation and access to green space.

A secure trend

According to Yardi Matrix data, the number of apartments completed annually in “live-work-play” developments quadrupled between 2012 and 2021, rising from 10,000 to 43,700 units. 

Trevor Ankeny, CPM^®

“Mixed-use developments have been trending for a while, and the momentum is expected to continue,” says Trevor Ankeny, CPM^®, regional director for Kimco Realty Corporation’s Mid-Atlantic region. Based in Maryland, Ankeny oversees mixed-use sites and shopping centers in Baltimore and Philadelphia. “People want convenience in how they live, work, and play.” 

Mixed-use properties have long been popular in urban areas, but the trend is also growing in suburban markets, says Lindsay Bonilla, CPM^®, CCRM^®, senior regional property manager at Greystar. “While there’s a lot of competition in those suburban markets, the demand is also there,” she says. “Some people do not want to travel downtown to work or live in the middle of the hustle and bustle—they want the convenience of having their office, restaurants, and other retail right at their fingertips.”

Lindsay Bonilla, CPM^®, CCRM^®

Overall, Manhattan leads with the most apartment units in mixed-use developments, and Washington, D.C., has added the most new units in the last decade. As for other areas of the country where these developments will be successful, Bonilla sees potential in high-growth markets, such as those in the Sun Belt.

Appealing to all

Choosing the right commercial tenants is an important consideration for meeting the needs of residents and the outside community.

“You must incorporate retail that people will utilize,” Ankeny explains. “Residents want to be able to run downstairs and get what they need. A grocery store always makes sense. Another example is the smaller-format Target in one of our Philadelphia properties. It has a pharmacy and other essentials typically found in a larger-format Target.” 

To find the ideal tenants, Bonilla suggests working with a brokerage that knows the local market, considering the community’s brand or identity, and listening to resident suggestions. 

Another challenge for property managers is engaging residents of different generations, resident types, and family structures. Bonilla says her communities have been more active in building connections. “We find that curating connections within our communities fosters greater engagement and retention,” Bonilla says. “We now offer tons of programming—similar to what you would see in an active adult community, and it’s been popular with Gen Z, millennials, and older generations.”

Bonilla suggests considering a property’s identity to determine the appropriate programming. For example, if the property is wellness-focused, find ways to offer health-related programs to residents. “You could host a sound bath or yoga class on the lawn,” she says. 

Community events pairing residential and commercial tenants are another big win in mixed-use communities. “One of our Starbucks stores hosts an annual police appreciation event,” Ankeny says. “Along with the police, they invite community members to come and interact with the police. It’s an opportunity for residents to get to know the local police, bringing everybody together: residents, retail, and community resources.” 

Bonilla says hosting an education series led by retail tenants, such as coffee education classes, is another proven way to build engagement and benefit all tenants.

Art of the design

Because these communities contain various assets on a shared site, thoughtful foresight is required when developing mixed-use properties. 

“One of the biggest challenges we’ve encountered across every type of mixed-use asset is trash management,” Bonilla says. “Think about how the property will operate on day 365 when you have 100% occupancy on your commercial tenants and 95% on your multifamily. You must have sufficient space for trash enclosures, recycling containers, or property loading docks. Ample storage is also essential.” 

Flex spaces are another important feature to incorporate in a mixed-use development. “The vision may include a gym, a kitchen, a club room, or other in-demand space,” says Bonilla, “but we’re also encouraging developers to build more spaces that can be flexible, where we can activate it for a multi-family or commercial use.” 

Bonilla says having spaces offering a storefront and office space, such as a salon with a small office, have been popular requests. 

Maintaining property value and tenant satisfaction 

As consumer preferences continually change, real estate managers must stay on top of current trends and adapt as necessary. 

Repurposing spaces, such as changing an unused golf simulation room into a fitness area, can be one way to address changing preferences. At a property in Philadelphia, Ankeny’s team began renovating multifamily units to meet current resident requests. “This property is only about seven or eight years old, but resident tastes were changing, so they remodeled some units to feature different appliances and features. These units are marketed as part of the ‘signature series,’ and it brought back some of the occupancy.” 

Bonilla says it has been a particularly challenging time balancing the needs of clients and investors due to negative rent growth. “Managing expenses is one of the key areas we can control,” she says. “At the same time, we don’t want to sacrifice resident experience, so retention has been a main area of focus for us. The current market situation is a good reminder for operators to ensure we’re delivering the top-notch service that residents and tenants deserve.”

To keep a pulse on tenant satisfaction and preferences, Bonilla suggests seeking regular feedback through surveys and polls. Partnerships with local, walkable businesses are another valuable opportunity for resident satisfaction. These retailers can become partners and offer perks and discounts to residents. “We tell the business how symbiotic the relationships with our residents can be,” Bonilla says. 

Mixed-use momentum

Mixed-use developments are expected to continue to be a major development and design trend in 2025. With the right mix of anticipation and communication, property managers will be prepared to manage this dynamic asset type.

“To be successful, it all comes down to staying abreast of the market and tenant needs,” Ankeny says. “You have to understand how nearby competition will impact you, and you need to react by analyzing your location and seeing how you fit into the market—and you need to listen to tenants. It’s all about staying adaptable.”