What is Mixed-Use Development? The Definition, Pros, and Cons for Renters

If a walkable neighborhood, where everything and everyone is within reach, is your dream living situation, then read on — because you may be a good candidate for living in a mixed-use development. Most common in downtowns and on main streets, mixed-use properties combine the best of both real estate worlds: commercial and residential. In this guide, we explain what exactly they are, what the benefits are, and what the drawbacks are.

A mixed-use development is exactly what it sounds like: a single building with multiple purposes. This property type combines commercial uses with residential — so if you live in a mixed-use development, you may be sharing your apartment building with a retail store, coffee shop, doctor’s office, gym, or other commercial or office space.

There are two prevailing types of mixed-use developments.

Typically, a mixed-use building will have commercial space on the ground floor, with residential units on higher floors. Most often, there will be more residential space than commercial space. In many mixed-use buildings, there is a separate entrance for residents and commercial space customers.

Another possibility is that a mixed-use building that is not multiple stories will have commercial property like a retail space in the front and a residential space in the back.

Mixed-use development is most common in urban areas, whether a city is large or small. Think: downtown areas, popular shopping stretches, and main streets. For example, there is plenty of apartments in mixed-use developments on Boston’s Newbury Street or throughout New York City.

If you’re looking to live in a mixed-use building, then you’ll need to find a neighborhood with mixed-use zoning in place. Local government determines whether or not an area in their city is zoned for commercial use, residential use, or mixed use. Not everyone agrees on whether mixed-use zoning is a net positive or negative for a neighborhood, and some prefer to keep homes separate from commercial spaces. 

Is an apartment in a mixed-use building right for you? Read on for pros and cons.

Mixed-use development is a big part of many American cities, most often concentrated in an urban hubs, downtowns, or main streets. Mixed-use real estate and zoning laws fell out of favor for a while, but in recent years, has renewed popularity. It gives renters an opportunity to live close to various retail stores, cafes, restaurants, and more — as well as public transportation. If you’re interested in being in a community that’s walkable and exciting, then consider renting an apartment in a mixed-use building. If a low-noise profile and privacy are more important, then you may be better suited to a more traditional residential building or apartment complex.