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Home News CRE

How A Mixed-Use Approach Could Help The Retail And Office Sectors

There are two mixed-use approaches that could help both sectors: high rises in major business districts, and horizontal developments in suburban areas.

Aayat AlibyAayat Ali
May 20, 2022
in CRE
Reading Time: 1 min read
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How A Mixed-Use Approach Could Help The Retail And Office Sectors

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Portions of the real estate industry have come roaring back in the last several months, but for the office and retail sectors, the path to recovery has not been simple.  

But new reports show that these two suffering real estate participants have concluded that mixed-use may help prop one another up. 

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“Before the pandemic, retail within urban office areas served as an easily accessible amenity to office employees—perfect for running errands and grabbing lunch with coworkers or a client—however, with physical office occupancy still well below the pre-pandemic baseline, urban retail locations continue to miss out on an important revenue stream,” said Peter Ferramosca, a consultant with CoStar Group.  

Embracing a “live-work-play environment” can alleviate the impact that low occupancy has on both office and retail spaces. With less people commuting to the office, surrounding retailers are seeing less foot traffic. 

According to CommercialEdge’s most recent national office report, mixed-use developments could help address the needs of all suffering from this dip, including consumers, landlords, tenants, and workers. 

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However, the question remains whether the adoption of more hybrid and remote work policies could hinder the potential of these developments.  

The report cites two specific successful mixed-use approaches: high rises in major business districts and downtown areas, and horizontal developments in smaller cities and suburban areas. 

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Source: Globe St.
Tags: CRE
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Aayat Ali

Aayat Ali

Aayat is an editor for the Daily Digest based in Lexington, Kentucky. She has worked with local coworking spaces since August of 2017 and enjoys taking her firsthand knowledge to write about the fascinating, constantly evolving world of flexible workspaces.

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