The rising appeal of mixed-use submarkets for multifamily and offices

Submarkets with a greater mix of office and multifamily buildings are almost twice as likely to see above average rates of people visiting the office compared to predominantly business or residential districts in the last two years.

Amenities matter

It’s no surprise that the way people prioritize work and personal lives has shifted in recent years. Flexible work policies have become the norm and employers have gotten creative, finding new ways to create valuable experiences for employees in the workplace. The result? More high-quality, amenity-rich spaces that foster collaboration and culture.

Experiential workplace strategies were gaining ground far before COVID put them in a brighter spotlight, but the buffet of amenities and options available at top-class properties have become increasingly attractive to occupiers. In the past four years, trophy and class A spaces have accounted for around 70 to 75% of all leasing activity. In gateway markets across the U.S. like Chicago, Manhattan, and Houston, we’re still seeing these high percentages today.

Availability rates reinforce this continued demand for highly amenitized assets as our data shows that trophy properties built after 2010 are averaging 6.8% lower availability than overall market rates. But it’s not just luxurious architecture and open floor plans that make up these trophy offices. They share another common theme: their proximity to well-balanced communities.

The mixed-use advantage

Nestled within vibrant mixed-use submarkets, many successful high-end office properties boast restaurants, retail, and housing within their vicinity, meaning that employees can easily grab lunch, run errands, and even walk home after work.

A survey of Avison Young brokers in the South region found cafés/restaurants and walkability were the most important amenities to tenants. When deciding on office location, nearly 80% agreed proximity to retail offerings was either extremely or somewhat important to tenants.

This diverse dynamic of buildings has proven to be irresistible to workers, translating to higher rates of office busyness in these areas. In fact, submarkets with a greater mix of office and multifamily buildings are almost twice as likely to see above average rates of people visiting the office compared to predominantly business or residential districts in the last two years.

One example of this trend taking shape is the Golden Shore waterfront development in Long Beach, California. Residential, office, hotel, and retail spaces come together across 6.2 acres with over 1.5 million buildable square feet available. The City of Long Beach fully backs the project, pledging to expedite architectural design and building permit processes and reflecting government entities’ growing recognition of the benefits of connecting residences and offices.

Visitation rates in these blended submarkets have also climbed significantly, reaching almost 60% from 2022 to 2024, mirroring how highly foot-trafficked these areas are. This elevated busyness can spark a sense of vitality and connection in the office, enhancing employees’ overall experiences and even driving financial success.

Interestingly, many employees are traveling under three miles to get to the office or commuting over 50 miles, suggesting that when the office is compelling enough, distance may not be a deciding factor.

A recipe for success

The rise of mixed-use submarkets represents a reliable shift in how people prioritize the places where they spend their time. By creating dynamic, convenient, and exciting communities, real estate professionals can see how multifamily and office intertwine to build successful spaces.

How busy are your city's offices compared to other cities'? Explore our interactive office busyness tool and dive into the data behind building utilization.