Grow your valet operations

Unveiling the Momentum of Mixed-Use Developments: An In-Depth Analysis of 10 Vital Growth Indicators

For valet operators, the surge in mixed-use developments isn’t just a real estate trend—it’s a gateway to untapped potential.

These 10 key indicators of growth do more than chart a rise in such properties; they point to new avenues for business expansion and service refinement.


Urban Population Growth

The United Nations projects that by 2050, nearly 68% of the world’s population will be urban. Comparatively, in 2018, this figure stood at 55%. As cities become denser, the demand for efficiently designed spaces increases. Mixed-use developments, which combine residential, commercial, and sometimes industrial components, are a direct response to this urban influx. They not only offer a solution to the increasing scarcity of urban land but also cater to a growing urban population’s desire for accessible living and working environments.


Millennial and Gen Z Preferences

Surveys, including those from the National Association of Realtors (NAR), indicate a strong preference for mixed-use communities among younger demographics. About 62% of millennials and 45% of boomers prefer walkable, mixed-use neighborhoods. These generational preferences are driving demand:

  • Walkability
  • Access to amenities
  • Proximity to work and play

This demand influences developers to focus more on mixed-use buildings, as these preferences translate directly into rental and sales markets.


Economic Resilience

Mixed-use developments have shown a degree of economic resilience. For instance, during downturns, if the retail sector suffers, the residential or office components might still perform well, thereby safeguarding the investment. This resilience is reflected in investment trends, where such developments maintain occupancy rates and, in some urban centers, have seen a less pronounced dip in valuations even during economic slowdowns.


Real Estate Investment Trends

Investment in mixed-use properties has been a growing segment of the real estate market. The Urban Land Institute (ULI) notes an upward trend in such investments. For example, commercial real estate services firm CBRE reported a year-over-year increase in mixed-use development investments, with rates varying but some regions experiencing double-digit growth rates.


Zoning Law Revisions

Municipalities are increasingly modifying zoning laws to favor mixed-use development. A review of zoning updates in several large U.S. cities revealed a 20-30% increase in mixed-use zoned areas over the past decade. These changes reflect a recognition of the benefits of mixed-use development in terms of efficient land use and alignment with contemporary urban living trends.


Reduced Carbon Footprint

Sustainability targets set by cities and countries often include significant reductions in carbon emissions. Mixed-use developments contribute by reducing the need to travel for daily needs, which can be directly associated with reductions in vehicular emissions. Some sustainability goals aim for a 30-40% reduction in emissions by 2030, and mixed-use developments are a key strategy in achieving these targets.


Retail and Residential Market Growth

The growth rate of mixed-use property development, particularly in the retail and residential sectors, ranges from 6% to 12% annually in several markets. These figures can vary based on the economic climate and local market conditions, but they have consistently outpaced many single-use property developments.


Public Transit and Infrastructure

Development There’s a strong correlation between public transit development and mixed-use buildings. Cities that invest in public transportation often see an uptick in mixed-use development around transit hubs. This trend is supported by the desire to maximize the utility of public investments in transit infrastructure.


Lifestyle and Community Benefits

Mixed-use developments promote a sense of community and offer lifestyle advantages that are appealing to modern dwellers. These include:

  • A mix of residential options
  • Retail and dining establishments
  • Green spaces and public areas

These benefits contribute to a high quality of life, making mixed-use developments a popular choice for both renters and buyers.


Architectural and Planning Innovation

Architectural and urban planning publications have increasingly featured mixed-use projects, signaling a trend in the design community. Not only are these developments on the rise, but they are also at the forefront of innovative design, incorporating sustainability features, smart technology, and community-focused amenities that set them apart from traditional developments.

Each of these points reflects broad trends that have been observed and documented up to the beginning of 2022. For the most current statistics and trends, it’s important to consult the latest market analyses, government reports, and industry forecasts.

Let's get started!

Fill out the form below and let discuss how Summon can help you run efficient ticketless valet operations and improve your bottom line today!

Call now (404) 301-8980 Talk to us on WhatsApp

Hablamos Español