Mixed-use rises with experiential retail, highly amenitized office environments

Quick takeaways

• Mixed-use properties with service-oriented retail and highly amenitized office spaces are in greater demand following the pandemic.

• These asset types can reinforce demand and strengthen overall leasing, experience, and value in mixed-use developments.

• Housing in mixed-use developments can drive demand for other uses.

• Growing markets, including Denver and the Mountain West region, are attracting population and jobs that may support demand for mixed-use properties in the years ahead.

Service-Driven Retail, Offices with Worker-Friendly Perks Lead the Recovery

In the post COVID-19 environment, demand for properties with these features has been high on a national basis, with experiential retail and amenitized workplaces increasingly popular. Recently, pension funds and other institutional investors have shown renewed interest in retail real estate, signaling the sector as a standout and helping drive up investment property sale prices.

Demand for mixed-use development with experiential retail and office spaces does not seem to be a short-term trend; rather, it’s a reflection of how people want to live, work, and play. It also reflects shifts in zoning across the U.S., which has become more favorable to urban and suburban density, including multiple uses in the same developments. This is not to suggest that all mixed-use developments will succeed at the highest level, but that well-located, thoughtfully planned mixed-use communities can fulfill consumer and workplace preferences and provide a foundation for sustained growth in the years ahead.

Diving Deeper into Experiential Retail

Experiential retail generally refers to service-oriented and experienced-driven uses rather than traditional goods-based retail. These uses typically provide a service or other experience, ranging from dining to entertainment to wellness to fitness. These might include a restaurant, golf driving range, hair-coloring salon, yoga studio, or gym, all of which require real estate space to deliver on their business models.

Experiential and service-based tenants now lease more retail space than goods-based sellers - surpassing them for the first time in 2025 by square footage. As e-commerce grows and non-traditional tenants expand into retail, service-based leasing may continue to drive space absorption and consumer traffic.

Notably, one category of traditional retail is as strong as ever: grocery-anchored neighborhood-serving retail centers, which have been performing well as an investment class. Specialty supermarkets have the potential to perform even better by drawing consumers from a larger regional radius to a shopping center or mixed-use development, and often with higher income shoppers.

A complementary shift is also underway toward more experiential, service-rich workplace environments. In mixed-use settings, office users benefit from integrated offerings such as fitness, dining, and other on-site services that enhance convenience and day-to-day experience. As these environments attract talent, companies are increasingly drawn to locations that offer this level of accessibility and engagement.

In well-planned mixed-use developments, experiential retail and highly amenitized office converge, reinforcing demand for each other, and strengthening overall leasing, experience, and value.

Housing as a Driver in Mixed-Use Developments

Multifamily housing in mixed-use developments serves several roles. It helps meet housing demand - whether rental or for-sale - in supply-constrained markets, provides a built-in customer base that supports retail, dining, and services, and fosters opportunities for connection and community among residents.

Many successful mixed-use developments feature outdoor spaces, such as parks and trails, or connections to them, along with walkable streetscapes, gathering areas, and indoor or outdoor entertainment venues. In some cases, they may also incorporate hotels to support visitation and extended stays.

Denver and the Mountain West Stand Out

Growing regions including the Denver/Boulder metropolitan area and the Mountain West more broadly are attracting population and jobs, often with higher incomes that may support demand for mixed-use properties in the years ahead.

Key drivers of continued in-migration are economic opportunity and quality of life, combined with relative affordability compared to coastal markets. As single-family home prices have increased in Colorado and other states in the region, rental housing has become more attractive, driving demand for apartments and rental homes.

The Mountain West includes eight states: Colorado, Wyoming, Montana, Idaho, Nevada, Arizona, Utah, and New Mexico. Many markets in the Mountain West often exhibit a favorable balance of demand drivers and supply constraints, creating conditions that may support stable occupancy, competitive rent levels, and long-term asset durability.

Placemaking at Its Best

The next generation of mixed-use development has the potential to represent placemaking at its best. The most compelling mixed-use developments do even more than provide a place to live, work, and play: they create opportunities for personal connection and community.

Combining experiential retail, highly amenitized office spaces, and desirable housing options in mixed-use developments that are properly located and carefully planned satisfies heightened demand for live-work-play communities and could play a pivotal role in commercial real estate’s future.