ICSC Study: Americans Want Mixed-Use, And They Want It Now

The vast majority of Americans would at least consider living in a mixed-use community — a live-work-shop-play environment — according to a new study by the International Council of Shopping Centers.

Sawmill Station
Photo credit: Courtesy of Kensington Development Partners
Sawmill Station, The Transformation Of A Shopping Center In Suburban Chicago Into A Mixed-Use Property.

Fully 78% of U.S. adults surveyed are open to mixed-use, but younger Americans are most on board, with 85% of millennials saying they would consider living in such an environment vs. 71% of baby boomers.

The driving force is convenience, according to the report. More than half of the respondents (55%) cite that as the main reason for considering a mixed-use property. Variety and proximity are essential in making mixed-use properties attractive, with housing, workplaces, dining and recreation all close to each other.

Consumer awareness of mixed-use options is affecting existing retail properties as well, ICSC found. People want more out of their malls. More than two-fifths (44%) of consumers say that their visits to shopping centers are more likely now to include different activities compared to even two years ago.

Sizable numbers of consumers have increased their visits to fitness/wellness (36%) and medical facilities (34%) in shopping centers during the last two years, the report notes.

According to data from CoStar cited in the report, the share of total shopping center space allocated to nonretail/non-restaurant tenants at the end of 2018 was nearly 25%, up from 19% at the end of 2012.

Many adults (38%) are also now spending more at dining establishments than two years ago, and half of those surveyed want to see more dining options at shopping centers. Forty percent want more leisure and entertainment venues.

Developers have been responding to consumers' openness to mixed-use by creating new mixed-use properties, as well as adding mixed-use elements to existing properties.

In suburban Chicago, for instance, Kensington Development Partners and IM Properties are planning to remake an outmoded retail center into a mixed-use complex.

That project involves a retail center formerly known as Prairie View Plaza being converted into Sawmill Station, a 240K SF collection of new shopping, dining and entertainment options, along with a 240-unit multifamily project.

In Boston, developers are transforming previously separate commercial space into mixed-use. Related Beal’s Congress Square involved the transformation of Fidelity’s old 530K SF HQ into a mixed-use development with nearly 93K SF of new construction and the Quaker Lane ground-floor retail experience.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

Wall Street Impatient For Big Tech Returns On Data Center Spending

As AI Adoption Ramps Up, Half A Million Property Managers Are In The Crosshairs

Treasuries Hover Around 4.7% As Wall Street Questions If Warsh Is A 'Dove In Hawk's Clothing'

Avison Young Had Assets Frozen By Bank Over Unpaid Taxes

Camden Property Trust Sells West Coast Portfolio, Clears $1.5B Target

Churchill Downs Plans To Sell 9 Casinos, Focus On Horse Racing

Bringing Stability And Savings To CRE Insurance Through Working Layer

More Hotel Owners In Need Of Cash Are Getting It From The Big Brands

Former Arms Dealer Targeting Heartland Apartment Takeover Files For Bankruptcy

SEC Charges REIT, Its Founders With Alleged $152M Fraud Scheme

King Of Prussia Pursues Stadium To Anchor $200M Mixed-Use Complex

Equinix Ramps Up Spending Plans Amid Faster-Than-Expected AI Shift