Multifamily
Why do all new developments seem to be mixed-use with retail on the ground level and apartments above? As cities evolve, the convergence of mixed-use development is redefining urban landscapes. This hybrid model yields vibrant, walkable communities while offering developers diversified revenue streams and heightened resilience. Here’s why combining multifamily with retail is essential for cities and the people who live in them.
In dense urban areas, mixed-use developments optimize limited land by layering residential, commercial, and recreational functions within the same footprint. This approach not only maximizes value per square foot but often elevates surrounding property values by 5–20%, thanks to the "halo effect" of integrated amenities and walkable design (microflexspace.com, vdbg.com).
Mounted above ground-floor retail, multifamily units cushion against single-sector downturns. If one use underperforms, like retail during e-commerce surges, residential components help maintain cash flow. This diversification, akin to a built-in hedge, enhances both income stability and investor appeal (microflexspace.com, info.plbco.com).
In many municipalities, mixed-use development is incentivized through zoning policies that allow for higher Floor Area Ratios (FAR), enabling developers to build more square footage relative to the size of the lot. This approach reflects a shift toward denser, more efficient land use that supports walkable communities, transit-oriented design, and economic diversity. By integrating residential and commercial uses within a single footprint, cities can justify increased building height and density while promoting sustainability and reducing urban sprawl. These FAR bonuses often come with conditions, like affordable housing components or public amenities, but they offer a strategic pathway for developers to maximize value while aligning with long-term urban planning goals.
Mixed-use developments create environments where residents live, shop, work, and socialize without driving. This proximity fosters social cohesion and supports shared spaces (plazas, parks), aligning with urbanist Jane Jacobs’s notion that “eyes on the street” promote safer, more vibrant neighborhoods (mrinetwork.com, microflexspace.com, vdbg.com, en.wikipedia.org).
Reduced commuting lowers carbon footprints, and shared infrastructure leads to better energy and resource efficiency. Integrating uses within one development supports sustainable urban planning and contributes to long-term environmental stewardship (vdbg.com, info.plbco.com, rweiler.com).
While multifamily construction is slowing due to high interest rates, tighter lending, and supply chain volatility, markets with balanced supply are still seeing rent gains and strong demand. This underlines the sector’s resilience, especially when integrated with mixed-use advantages (callan.com). Also, multifamily rents are projected to grow at 3.1% annually over the next five years, outpacing pre-pandemic levels and reinforcing the appeal of multifamily investment (primior.com).
4201 W Pico Blvd: Eight-story building with 222 residential units above ground-floor retail. The project includes density bonus incentives, reserving 35 units for very low and moderate income households, and offers parking for approximately 170 vehicles. Designed by Asulon Architecture & Design, the building will feature a central courtyard and rooftop amenities, contributing to the evolving Mid-Wilshire landscape. (Urbanize LA).
13476 Washington Blvd: This approved mixed-use development in Marina del Rey features 82 residential units above ground-floor retail. Rising seven stories with a height of 76 feet, the project sits at the border of Los Angeles and Culver City. Designed by PK Architecture, it’s backed by Washington Marina Apartments LLC and Hillcrest Company. (Urbanize LA).
These projects, brokered by Eve Capital, exemplify how mixed-use builds can anchor communities and anticipate market shifts.
Balancing optimism with pragmatism, mixed-use development is a calculated move with multidimensional upside: diversified income streams, walkable urban integration, density bonuses, and long-term sustainability. Yet the complexity is real and these projects demand nuanced zoning navigation, elevated design thinking, and operational sophistication from day one. When executed with precision, they transcend trends and become enduring, community-centric assets that shape the urban fabric and deliver resilient value.
Looking for your next mixed-use development project? We’ve got on and off market locations that could be the perfect fit. Eve Capital agents have the stamina and experience to help you close on your next big project. Let’s connect.
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