According to the NAIOP Research Foundation, after decades of suburban decentralization that created a multitude of single-use auto-oriented office parks, CBDs are being revived with well-designed mixed-use infill projects, most successfully in large metro areas with commuter rail transit. Such downtown transformations combine the key ingredients of housing, retail, dining and walk-to-work offices to regenerate urban cores, spurring investment and development, and raising the quality of life for a roster of cities. And, the resurgence in downtown living is bolstering secondary office markets around the country. Buyers have more markets to consider now that the 18-hour centers are putting the elements in place to ratchet up investment capital flows, according to ULI's Emerging Trends.

Employment-oriented town centers as well as suburban mixed-use redevelopments fall into the LWP category. In suburbia, where the large majority of the nation's office inventory is located, single-use areas formerly devoted to retail centers and office parks are being reimagined as LWP districts.

Companies seeking suburban locations appear to favor amenity-rich places that include other commercial, residential and civic facilities. According to a recent NAIOP Research Foundation survey, office tenants would rather be in suburban LWP centers than in typical single-use suburban office locations (83% versus 17% of respondents). According to the survey report, office tenants may prefer suburban LWP centers to downtowns, but this is location specific and needs to be qualified. First, strong CBDs usually are preferred to suburban LWP centers, but the reverse is true when the CBD is weak: suburban areas usually are preferred to weak CBDs. Second, the most vibrant CBDs tend to be in larger office markets, especially ones with strong transit service.

Overall, tenants seek space that best fulfills quality, cost, building features/property amenities and location preferences. When considering locations, Michael S. Duffy, chief operating officer of Trammell Crow Co., tells REAL ESTATE FORUM, “We look at where investment capital is plentiful and consistent. We develop in 16 to 18 such markets to acquire mixed-use sites that allow us to differentiate ourselves and provide best in class projects.”

One such market Trammell Crow has found attractive is Austin, TX. According to ULI's Emerging Trends, survey participants like the industrial base, the appeal to the millennial generation, the diverse employee base and the lower cost of doing business in Austin. The market was a top choice for both the office and the single-family housing sectors, and was the number two-ranked market for retail.

As an example of “jobs chasing people,” Duffy points to the success of the Green Water Treatment Plant parcel known as Northshore in Downtown Austin. This is an example of the successful pairing of job growth and livability in the LWP environment. Trammell Crow worked in partnership with Austin's economic development department, the Hanover Co. and Pacific Life Insurance Co. to close on the sale and transfer of the 1.8-acre parcel. The pivotal downtown waterfront development is expected to deliver 1.7 million square feet, within 38 floors and three tiers of mixed-use development. Northshore will include approximately 440 apartments, including 50 affordable units, as well as more than 40,000 square feet of office and retail space. The project will also include public art and music programs.

Another Trammell Crow project, the second of four parcels being developed, is Austin's newest office tower at 500 W. Second St. The building will feature 489,403 square feet of class A speculative office space and 11,033 square feet of ground floor restaurant/retail space. Principal Real Estate Investors teamed with Trammell Crow on the project as part of the partnership with the city of Austin to bring new vibrancy, livability and unique land uses Downtown.

For Ryan Cos. US Inc., it is location first, second and third, Molly Carson, vice president of development, tells FORUM. The additional development considerations of employment, amenities, condition of the site and city collaboration also come into play to create successful mixed-use projects.

The Marina Heights development by Ryan Cos. in Tempe, AZ is one that meets those requirements. The campus is a 20-acre, $700-million mixed-use development that features two million square feet and is slated to become the largest development in Arizona history. More than 40,000 square feet of retail will complement the TOD, including food service, coffee shops, restaurants, business services and fitness facilities. All of these amenities will serve the employees as well as the local community. The site will also feature an approximately 10-acre public plaza aside Tempe Town Lake.

As the “live” part of the equation at Marina Heights, the OliverMcMillan-developed SALT is a 3.7-acre site currently under construction located on the south side of Tempe Town Lake. The four-story, 265-unit, class A apartment building is part of the Hayden Ferry Lakeside master plan, near Arizona State University and the Mill Avenue Entertainment District. It is expected to provide residents with resort-style amenities, including two pools, a spa, yoga lawn, poolside cabanas, multiple outdoor barbecue areas and lush lakeside landscaping. The community also includes a large fitness center, a media room and a spacious social room.

In addition to strictly locational considerations, ULI Emerging Trends survey respondents place job growth at the top of the list of most important issues for real estate, closely followed by the related concerns of wage and income growth. “Location is key, but job growth must continue to show strength in development areas,” says Trammell Crow's Duffy. “We consider where rents need to be and then ask: Can jobs support that rate?”

These job-related implications and recruiting concerns are also echoed by Toby Gove, president of KDC. “We look for areas with good employee pools, with the goal of retaining them,” he says. “We like mixed use, walkable environments with retail, multifamily, office and hospitality integrated into them. And the sites we generally pursue are adjacent to light rail.”

KDC's CityLine, located in Richardson, TX, is one such site. The 186-acre, mixed-use property features access to office, residential, hotel, dining, retail sites, entertainment venues and parks. The dense urban development is adjacent to DART's commuter rail line and station at Bush Turnpike.

Two primary tenants, State Farm and Raytheon, combine to bring total office space under development to 2.5 million square feet, housing nearly 13,000 employees. Moreover, approximately 930 apartments are currently under development, along with a 41,000-square-foot wellness office building and a health/fitness facility adjacent to a 3.5-acre park with trails. By September 2015, CityLine is expected to have a daytime population of 10,000 people.

The dominant theme of walkability and nature also comes into play for the Bozzuto Group. President Toby Bozzuto tells FORUM, “We look for projects that have a feel to them. The best projects combine the extraordinary, both inside the walls and outside the walls.”

That type of neighborhood-oriented development by joint venture partners Bozzuto Group, Abdo Development and Pritzker Realty Group is to be found in Washington, DC. Monroe Street Market is a mixed-use, mid-rise project with apartments above retail. The TOD is adjacent to the Brookland-CUA Metro station and the redevelopment will be located on five city blocks, three miles north of the Capitol.

The streetscape and hardscape improvements have greatly improved the neighborhood's walkability, creating significantly improved traffic patterns and pedestrian crossings along Michigan Avenue and Monroe Street. The project includes approximately 720 residential units, 45 townhomes, 83,000 square feet of street-level retail, 850 parking spaces, 15,000 square feet of artist studio space and a 3,000-square-foot community arts center.

Also on the eastern seaboard is a mixed-use monolith in Alpharetta, GA. At 2.4 million square feet, Avalon by North American Properties is one of the largest projects currently underway in the United States. It is a walkable, seamlessly connected community of shopping, dining, entertainment, living and working. It includes more than 800,000 square feet of retail, a 12-screen theater, a planned conference center, a full-service hotel, class A office, single-family residences and luxury rental homes infused throughout the 86-acre development. Resort-level hospitality is evident via the valet and concierge services.

“We are seeing development trends that are not horizontally oriented but instead vertically oriented,” relates John Kelley, partner and vice president of development at North American Properties. “For our recent projects like Avalon, we took urban design principals to the suburbs to create experiences for visitors and users. Avalon is more than just another place to go; it's a place to be—a hub of local art, activity and great public spaces.”

Fellow vertical thinkers, the team at OliverMcMillan, have a similar but urban perspective. The firm's senior managing director for the West, Eric Buchanan, tells FORUM: “We look at urban vertical mixed-use sites in markets that are underserved. Our creative approach allows us to go into new cities and develop differentiated, pedestrian-oriented projects that stay true to a current location and its atmosphere.”

Jeff Zeigler, senior managing director of retail services at the firm, agrees. “We're hearing that people want less vehicular traffic, and like walking to dinner after work and walking back home. Our secret sauce is a mix of a European feel including ground-floor outdoor cafes, combined with stacked residential and creative office designs.”

Two of OliverMcMillan's recent projects offer just that, beginning with Iowa River Landing, a 180-acre mixed-use development located in Coralville, IA, along I-80 and First Avenue. With the backdrop of the Iowa River, the project combines a natural setting with contemporary urban details including brick streets and roundabouts, clock towers, extensive landscaping, walking trails, a pedestrian bridge and open green spaces. The destination includes a 250-room flagship Marriott Hotel and conference center; a 330,000-square-foot retail town center; office, residential and entertainment offerings; as well as a transportation facility that will connect Iowa River Landing to Downtown Iowa City and the University of Iowa via light rail. The project is a public/private partnership between OliverMcMillan and the city of Coralville.

Kapolei is another OliverMcMillan project on 26.6 acres within the Villages of Kapolei, an 888-acre master-planned community on the island of Oahu. The northwest corner parcel is the final phase of Villages of Kapolei. The proposed project is for a mixed-use urban community with more than 400 residences. More than half will be priced for households with incomes of less than 140% of the area median income. Proposed plans include 154,000 square feet of retail space, 6,300 square feet of office space, community amenities and parks.

In the end, for these types of mixed-use sites to thrive, developers will remain keenly aware of development areas that make good economic sense, have business-friendly municipalities, supportive urban development units and healthy infrastructure cores. Some are attracted to developments that will create an entertainment experience for residents and users. Others look for ways to create projects that will stand the test of time, and blend in with existing grocery anchors and neighborhoods. Still others are not in the cycle-timing game. They know what works with core clients and stay true to those business models.

What seems clear is developers today are more selective and mindful of long-term stability in order to construct quality mixed-use LWP environments. Walkability, creating user experiences and job growth are foremost in planning processes, which should make for some inventive and memorable structures throughout many areas of the country.