Mixed-Use Development Insights

Hotels are no longer just hotels. The ones still acting like they are will be the first to get crushed in the next 5 years. Occupancy rates in the US are projected to hit 63.4% this year, just shy of the 65.8% we saw in 2019. Average daily rates are hovering around $160, and RevPAR is already past $100. Globally, RevPAR rose almost 4% in the first quarter of 2025, driven by strong performance in urban and airport properties. The demand is there. People are traveling, staying, and spending. But if you are still thinking of hotels as single-use boxes with rooms and a lobby, you are already behind. The real conversation right now is the rise of mixed-use hospitality and blended live-work-play developments. The smartest investors and brands are moving away from stand-alone hotels to multifunctional ecosystems that combine hotel rooms, branded residences, co-working spaces, retail, F&B, wellness, and even event venues under one roof. This is not a trend. This is a structural shift. Look at The Social Hub in Europe, Zoku in Amsterdam, or Radisson’s branded residences strategy. These are not just hotels. They are lifestyle hubs where guests can stay, work, meet, eat, and connect. For owners and investors, this model spreads risk, drives higher yield per square foot, and attracts a broader demographic than any traditional hotel ever could. Conversions are accelerating this shift. Underutilized office buildings and residential spaces are being transformed into hybrid hospitality spaces at scale. Marriott is pushing Project Mid in the US to convert office buildings into hotels. In China, nearly half of Hilton’s Hampton hotels are from conversions. This is where the real ROI is right now. It is faster, cheaper, and perfectly aligned with the way people live, work, and travel today. Psychology drives this success. Travelers no longer choose hotels just for a bed. They want experiences. They want flexibility. They want to feel part of something. A hotel that gives them co-working spaces, wellness programs, social interaction, and great dining without leaving the property wins every time. That is why the best-performing assets of the next decade will not be just hotels. They will be multi-functional communities designed for the way people actually live and travel now. If you are an owner, developer, or investor, ask yourself this. How are you repurposing your underperforming spaces to meet this demand? What is your plan to integrate wellness, co-working, and residential elements into your properties? Are you building for yesterday’s traveler or tomorrow’s? Because the future of hospitality is not coming. It is already here. What are your thoughts? Are you seeing opportunities for mixed-use hospitality in your markets?

There is such a shortage of inventory for residential real estate that many cities in the US are pleading for office-to-residential building conversions. Boston is aggressively pursuing downtown office conversions, with Mayor Michelle Wu proposing property tax breaks of up to 75% over 29 years. According to a recent study by design firm Gensler, up to 40% of the 90 properties they analyzed in downtown Boston may be suitable for conversion, potentially resulting in as much as 5 million square feet of converted space. The city expects to start taking applications in the fall but close the door at the start of the following summer. Construction on approved projects must begin by Oct. 25 if the owners don't want to return the entire tax break. There are a few notable conversion requirements, which can either be for apartments or condos. First, at least 20 percent of units must be designed for affordable housing. Second, the buildings will also need to meet high energy efficiency standards. I think this kind of conversion will also benefit REITs and Private Real Estate Funds, which have seen Cap Rates coming down in the past 12 months. In many cities, office buildings are half empty, taking a toll on the commercial real estate market! Your comments are always appreciated. Your opinion is valuable to me as one of my followers. #realestate #economics #finance #investing LinkedIn https://lnkd.in/ec3PPNC8

Over the last 15 years, more than 1,200 U.S. golf courses have closed. That's thousands of acres of underused land hiding in plain sight, waiting for a new purpose. While some see a failing golf course as a problem, others see 168 acres of opportunity. Case in point: a 168-acre golf course in Virginia was on its last legs – and the team at cove saw it not as a loss, but as an opportunity to build something new and better. Using #AI-powered design, they mapped out a high-impact, low-footprint mixed-use community on the site. The twist? All the new development fits into just 3 acres (under 2% of the site), preserving 95% of the land as open space. In other words, nearly the entire course stays green while a vibrant new neighborhood takes root in one corner. So what does this look like in practice? The project offers: ◆ 15% IRR through layered incentives and program synergy ◆ Middle-income housing + civic programming as social infrastructure for the community ◆  EV charging, reduced parking ratios, and mobility-readiness, baking in future transit and electric mobility from day one ◆ Solar-ready, net-zero, passive systems for a truly sustainable design Bottom line: redeveloping underutilized land can align community needs, environmental goals, and developer returns. This isn’t just about one golf course in Virginia – it’s a blueprint for how we can turn obsolete spaces into high-value assets. It shows that housing, amenities, green space, and profit can actually coexist when we rethink the old formulas. While other developers overlook these idle fairways, forward-thinking teams will transform them into the next big wins – turning yesterday’s golf courses into tomorrow’s mixed-use goldmines. 👇 Check out the full case study: https://hubs.ly/Q03sy7mR0 #aiarchitecture #cove

Sharing my piece from today's cover page of the Chicago Tribune Opinion section about a vision for the future of urban revitalization based on my experience from public service in Chicago. I address the widely-discussed decline of traditional downtowns post-pandemic as well as neighborhood disinvestment and provide three streets in Chicago that offer hopeful case studies for the future of cities: - South Cottage Grove Ave: The Discover customer care center employing 1,000+ in an abandoned big box retail store that is now generating significant economic activity in the neighborhood. The power of Corporate America bringing jobs to a disinvested neighborhood is a lesson I hope others will learn from and that can be repeated widely across Chicago and other cities to decrease the unemployment rates of disinvested neighborhoods. - LaSalle Street: One of the largest office-to-residential conversion projects in the country is taking place which will convert 1.6 million square feet of unused office space into a mix of apartments, restaurants, shops and workspace...over 1,000 new residential units of which 300 will be affordable. - State Street: Leaning into the experience economy, Sundays on State (along with festivals such as Suenos, Lolla, NASCAR) show the power of transforming public spaces into new amenities for residents and visitors alike. As I mention in the article: "What excites me is this: Each project made real progress, strengthening the forces that attract and retain people in urban areas. These initiatives created jobs, added housing and fostered connections when they were needed most. They were made possible through collaboration among city leaders, communities and private companies, which focused on welcoming more people to share in Chicago’s prosperity and potential. I’m excited that the spirit behind these projects echoes globally. You will find inspiration and opportunity on every block, in every neighborhood, in every city. It’s powered by the same energy that, throughout history, has spurred us to build ports and rail yards that helped us trade goods, roadways that connected our neighborhoods and skyscrapers that raised our sights and sense of possibility. Today, that energy continues to remake our cities in an image of today’s world — more dynamic, more interconnected, more inclusive. So ignore the clickbait. The story of cities today isn’t one of demise. It’s about rebirth." https://lnkd.in/gXyiixSk

Real estate is becoming the backbone of long-term strategy for sports ownership groups. We’re seen it in Europe, where clubs like Real Madrid, Barcelona, and Tottenham are transforming their stadiums into year-round revenue machines to offset player wages and transfer fee volatility. In the U.S., challenger leagues like the USL are embracing the model too. Rhode Island FC, Texoma FC, and others are building soccer-specific stadiums creating diversified revenue streams through real estate, live events, and commercial partnerships. Over the past few months, I’ve had the chance to speak with several USL owners and operators (Brett M. Johnson, De Anna Guerreiro, Erik Stover). These are sophisticated builders who understand the game and the ground it sits on, structuring deals with long-term land value and diversified revenue at the core of their strategy. Now the LA Rams, led by Stan Kroenke, who also owns Arsenal, are going all in. This week, Kroenke unveiled plans for Rams Village, a $10 billion, 52-acre mixed-use development in Woodland Hills that will house the Rams’ permanent HQ and training facility, two indoor concert venues, residential units, retail, office space, parks, and a hotel. Construction could begin as early as 2027, reshaping the Valley over the next decade. Think SoFi Stadium meets Westfield Mall, but anchored in team culture. We’re watching a shift in how sports teams create enterprise value: → No longer just match day, media rights, or merch. → Now it’s land, lifestyle, and live entertainment. Klutch Sports (kudos to Andrew Feinberg and team) even released a white paper recently on this trend: The Rise of Sports-Anchored, Mixed-use Districts. Highly recommend the read. Sports is becoming a real estate play. Private credit and lending will be the next boom behind it.

I talked with folks at Gensler and The Pew Charitable Trusts last week about the concept they released today with analysis for Chicago: office to residential conversion for co-living. At a time when we need all the creative ideas we can get, I really appreciate their thinking. This is different than LaSalle Street Reimagined, which is a more traditional office to residential plan. The Gensler/Pew idea reduces costs by maintaining centralized mechanicals - shared kitchens, baths and laundry - and locating micro studios on the periphery of the floor plate. They point out that while SROs have declined precipitously over the last 50 years, single-person renter households have increased. In Chicago, there are 60,000 single-person renter households who make between $20,000 and $40,000 per year - an income level that these units could approach affordability for and even more so with a modest public subsidy. As the authors note: "If subsidy dollars could be dedicated to this concept, the units produced per dollar of public assistance can greatly exceed what is generated under existing housing delivery models since the cost per bed is about one-half the cost of building a traditional studio." We have many vacant office buildings beyond LaSalle St, and many single renters needing low-cost housing near transit and jobs. Sounds like a great example of one more tool in the local toolbox that the National Housing Crisis Task Force has been exploring; cc Bruce Katz, Benjamin Preis. Wes LeBlanc Terry Hogan Alex Horowitz https://lnkd.in/gZFtZ-6b

Mixed Experience is the New Mixed Use The future of place-making isn’t just about blending uses, it’s about blending experiences. We’re watching priorities shift in real time. People aren’t just chasing amenities, they’re chasing how a place makes them feel. In an age of overstimulation, stress, and digital overload, the real luxury is presence, play, and purpose. And that’s driving a new development model. One that fuses adventure, wellness, hospitality, and community into a single environment. These aren’t shopping centers. They’re lifestyle ecosystems: • A precision surf lagoon + wellness spa + boutique hotel • Pickleball courts + chef-led dining + rooftop coworking • Tech-enhanced trails + climbing gyms + family-focused stays This isn’t just about what people can do there,  it’s about what they take with them when they leave. Developers who understand this shift aren’t building real estate. They’re building experiential destinations. It’s not “mixed-use.” It’s mixed-experience. And it’s where the future is headed.   #MixedExperience #Placemaking #WellnessRealEstate #AdventureAnchored #ExperienceEconomy #SurfParks #PickleballBoom #NextGenHospitality #DestinationDevelopment #RealEstateInnovation #BuiltNotImagined #FutureFridays   KSL Capital Partners Design Workshop East West Partners Sandro Sasaki Architecture Gensler SCB NELSON Worldwide ZGF Architects WAT Motor Company OJB Landscape Architecture Snøhetta Revel AO Architects Design & Engineering RIOS Architecture, Inc CallisonRTKL HKS, Inc. SB architects PopStroke Entertainment Group Discovery Land Company Sustainable Luxury Lanka (Pvt) Ltd - Six Senses Hotels Resorts Spas THERME GROUP Dink & Dine Pickle Park

𝗪𝗵𝗮𝘁 𝗱𝗼 𝘆𝗼𝘂 𝗱𝗼 𝘄𝗵𝗲𝗻 𝘁𝗵𝗲 𝘄𝗼𝗿𝗹𝗱 𝗰𝗵𝗮𝗻𝗴𝗲𝘀 𝗼𝘃𝗲𝗿𝗻𝗶𝗴𝗵𝘁? You innovate. When the pandemic emptied office buildings around the globe, most saw a crisis. Gensler saw an opportunity. Architect Steven Paynter and his team realized that many of these vacant office spaces could find a second life as residential buildings. However, evaluating the conversion potential of each property was a slow, costly process. Instead of throwing his hands up in defeat, his team got to work on developing an algorithm that could determine conversion feasibility in hours instead of weeks. By analyzing 150 key factors—like window depth, elevator count, and parking space availability—Gensler created a tool that turned complexity into simplicity. 𝗧𝗵𝗮𝗻𝗸𝘀 𝘁𝗼 𝘁𝗵𝗲𝗶𝗿 𝗶𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝘃𝗲 𝘁𝗲𝗰𝗵, 𝘀𝗼 𝗳𝗮𝗿, 𝗚𝗲𝗻𝘀𝗹𝗲𝗿 𝗵𝗮𝘀: • 𝗘𝘃𝗮𝗹𝘂𝗮𝘁𝗲𝗱 𝟭,𝟮𝟬𝟬+ 𝗯𝘂𝗶𝗹𝗱𝗶𝗻𝗴𝘀 𝗴𝗹𝗼𝗯𝗮𝗹𝗹𝘆 • 𝗟𝗲𝗱 𝘁𝗼 𝘁𝗵𝗲 𝗰𝗼𝗻𝘃𝗲𝗿𝘀𝗶𝗼𝗻 𝗼𝗳 𝟭𝟱𝟬 𝗯𝘂𝗶𝗹𝗱𝗶𝗻𝗴𝘀 • 𝗥𝗲𝘃𝗶𝘁𝗮𝗹𝗶𝘇𝗲𝗱 𝘂𝗿𝗯𝗮𝗻 𝗮𝗿𝗲𝗮𝘀 𝗶𝗻 𝟭𝟮𝟵 𝗰𝗶𝘁𝗶𝗲𝘀 As you can imagine, adaptive reuse of buildings minimizes demolition debris, which constitutes approximately 90% of the half a billion tons of construction waste generated annually in the U.S. Building conversions also lead to construction cost reductions of 25% to 35% compared to new builds, making them a financially viable option for developers. Not to mention, transforming underutilized office spaces into residential units enhances property values and attracts investment, contributing to economic growth in urban centers. Take Baton Rouge, where a Brutalist office building from the 1960s became 144 modern residential units. Or the Pearl House in New York, now the city’s largest office-to-residential conversion project. But this isn’t just about real estate—it’s about solving difficult problems with an upgraded mindset. Paynter’s team didn’t just adapt; they innovated. They turned a challenge into a scalable solution that’s reshaping how cities work and live. How can you apply this thinking to your own organization? • 𝗜𝗱𝗲𝗻𝘁𝗶𝗳𝘆 𝗛𝗶𝗱𝗱𝗲𝗻 𝗢𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝗶𝗲𝘀: What problems could you solve by looking at them from a new angle? • 𝗦𝗶𝗺𝗽𝗹𝗶𝗳𝘆 𝗳𝗼𝗿 𝗜𝗺𝗽𝗮𝗰𝘁: Gensler’s algorithm worked because it was fast, simple, and actionable. Can you streamline a process to unlock potential? • 𝗧𝗵𝗶𝗻𝗸 𝗕𝗲𝘆𝗼𝗻𝗱 𝘁𝗵𝗲 𝗢𝗯𝘃𝗶𝗼𝘂𝘀: It wasn’t just about offices—it was about revitalizing communities. What larger purpose can your innovation serve? Gensler’s story reminds us that innovation isn’t reserved for the tech giants—it’s for anyone willing to rethink the status quo and turn challenges into catalysts. What challenges could you reimagine in your organization today? Share your thoughts below, and let’s inspire some bold ideas together.

According to StreetEasy, a Zillow subsidiary, reports "U.S. Rents Soar 1.5 Times Faster Than Wages in Major Cities Over the Last Four Years, Straining Budgets". Why? This trend is driven by a dramatic demographic shift: North America's housing market is dominated by singles and couples without kids who strongly prefer to live (and work) in urban, mixed-use, and walkable environments. Think the downtowns and surrounding cores of major cities. And this dynamic will dominate housing markets for at least two more decades. Failing to respond to this dynamic is not just making life too expensive for millions of North Americans, it is also exacting another cost. A failure to attract and retain the increasingly scarce educated "talent" who in turn attract good jobs and investment--and spur economic opportunity for folks across the skills spectrum. Every city that lacks the housing in mixed-use, walkable places, that attract and retain this talent is underachieving in reaching its potential to enhance economic opportunity and slowing income growth for everyone. We need to build a new generation of mixed-income housing in our downtowns and close in urban neighborhoods. One more dividend? A boom in lively, walkalbe, urban Main Streets supported by nearby housing.

The "City of Yes" initiative in #NewYorkCity which will be voted on by NYC Council today is part of a broader effort to address the city's housing crisis, promote economic growth, and create more livable spaces for residents. One of the key components of this initiative is to **facilitate office-to-residential conversions**—transforming underutilized office buildings into new housing units. This is particularly relevant as remote work and changing work habits have left many office spaces vacant or underused. 🏢 ➡️ 🏠How "#CityofYes" Will Impact #OfficetoResidential Conversions: 1. **Easing Zoning and Regulatory Barriers**: New zoning changes will make it easier to convert office buildings into residential spaces by relaxing certain regulations, such as parking requirements or height restrictions. This flexibility encourages developers to repurpose existing structures rather than build entirely new ones, helping to meet the demand for housing more quickly. 2. **Affordable Housing Incentives**: By supporting office-to-residential conversions, the "City of Yes" aims to create more affordable housing options. The initiative includes provisions that may offer developers financial incentives—like tax breaks or bonuses—for incorporating affordable units into these converted spaces. 3. **Revitalizing Vacant Office Buildings**: Many office buildings, especially in central business districts, have experienced decreased demand due to the rise of remote and hybrid work models. Converting these vacant or underused properties into residential units can breathe new life into urban areas, contributing to neighborhood revitalization and reducing the city's surplus of empty commercial real estate. 4. **Sustainability and Environmental Benefits**: Repurposing existing buildings is also a more sustainable option compared to new construction, as it reduces the need for demolition and the environmental costs associated with building from scratch. The "City of Yes" emphasizes environmentally friendly development, and these conversions can contribute to greener, more sustainable urban growth. 5. **Improved Urban Design and Mixed-Use Spaces**: The conversion of office buildings into residential units could help create more dynamic, mixed-use neighborhoods. People living in these converted spaces could be closer to workplaces, retail, and transportation, reducing reliance on commuting and fostering more walkable, vibrant areas. The "City of Yes" initiative is a key step in addressing NYC's housing needs by making it easier to convert empty office buildings into affordable and sustainable homes. By doing so, it not only tackles the housing crisis but also revitalizes urban spaces and encourages smarter, more sustainable growth in the city.