Mixed-Use Redevelopment Surges in Key Growth Markets

By RadCRE Research · 2026-10-05 · Market Updates

Mixed-use development is gaining traction in dynamic markets, with a vacant Fulton Market building selling for $2.75 million for future mixed-use redevelopment [5].

The Evolving Landscape of Mixed-Use Development

The commercial real estate sector is witnessing a significant pivot towards mixed-use development, particularly in markets characterized by rapid growth and evolving urban dynamics. This trend is driven by various factors, including the re-evaluation of traditional office spaces and the demand for integrated living and working environments. Cities like Austin and Chicago are at the forefront of this transformation, showcasing substantial opportunities for developers and investors [1, 5].

Austin's Office Slump Fuels Redevelopment

Austin, Texas, is experiencing a notable shift, where an office slump is directly contributing to the rise of mixed-use projects [1]. This environment presents unique opportunities for large-scale redevelopment. For instance, a significant ±89.92-acre development site, known as KIPP 969, is available for purchase on the east side of Austin. This site, currently improved with 27 buildings utilized as a charter school, is located in an area undergoing rapid gentrification and development along the FM 969 corridor [2]. The property is strategically positioned just north of a soon-to-be redeveloped 2,500–3,000-acre tract, which a prominent Austin developer is master planning and has recently been annexed into the City of Austin. Its proximity to major roads such as FM 969, Highway 183, Toll Road 130, FM 973, Decker Lane, and Loyola Lane provides excellent access to the eastern core of Austin, making it ripe for mixed-use transformation [2].

Chicago and Miami See Increased Activity

Beyond Austin, other key markets are also embracing mixed-use strategies. In Chicago, a vacant Fulton Market building recently sold for $2.75 million, with plans for mixed-use redevelopment [5]. This acquisition highlights the ongoing appetite for integrated projects in established urban centers. Similarly, Miami offers compelling development prospects, as evidenced by a 0.82-acre infill development site at 3030 Coral Way. This site, located in Coral Gables, is positioned for residential or commercial development, with potential for boutique mixed-use projects. The area's robust office market, world-class retail, and affluent resident base support diverse development options, further bolstered by zoning that allows for additional height and Floor Area Ratio (FAR) through programs like Live Local [6].

Global and Operational Perspectives

The embrace of mixed-use properties is not confined to the U.S. markets. Cushman & Wakefield is hiring an Assistant / Deputy Building Manager for a mixed-use property in Jakarta, Indonesia, comprising residential and commercial office components [3]. This indicates a global trend towards integrating different property types within single developments to create vibrant, self-sustaining communities. Developers, such as Fred Schwass of General Projects, are actively involved in this mixed-use push, highlighting the growing expertise and investment in these complex projects globally [4]. The operational management of such properties requires specialized skills to support building operations, tenant relations, and facilities services, ensuring high-quality property management [3].

RadCRE Perspective

"The current market dynamics, particularly the office market recalibration, are creating fertile ground for mixed-use redevelopment. As seen in Austin, underperforming assets are being reimagined into vibrant, multi-functional spaces. Investors should closely examine these emerging opportunities in high-growth corridors. The key is identifying sites with strong fundamental access and surrounding infrastructure, which can support the complexity and diverse needs of mixed-use projects. RadCRE is actively advising clients on navigating these transitions, helping them identify and capitalize on value-add and distressed asset opportunities within this burgeoning sector. Whether it's repurposing a school campus or redeveloping a vacant urban lot, the potential for significant returns in mixed-use is compelling for those with a strategic vision."

Tags: Mixed-Use Development, Austin CRE, Fulton Market Redevelopment, Jakarta Mixed-Use, Coral Gables Development