Retail businesses in mixed-use districts are doing well and appear poised for demand growth in the 2020s. This is particularly true for well-executed development projects in locations with strong demographics. Occupancies are strong and were durable through the pandemic, especially for the top centers, which we refer to as “attractive districts” (as illustrated on page 46). Furthermore, cultural, migration and technology trends all appear to support real estate fundamentals where people can enjoy a 30-minute lifestyle commute to live, work and play.

Retail in a mixed-use format isn’t new. It looks like a more modern, American version of an old European village. For the residents, it’s a lifestyle choice that has been popular for thousands of years. Until World War II and the urban unrest of the ’60s and ’70s (with consequent flight to suburbs), this is how most of America lived as well. Places that were walkable, but not high-rise or high density. Today’s attrac