Reconfiguring vacant office spaces into multipurpose areas like conference centers, lounges and bars not only enhances the tenant experience, but also draws in visitors from the surrounding community as an attractive, all-encompassing environment.

According to JLL research, areas with diverse mixed-use property types among commercial, residential and hospitality have experienced more resilient demand and vibrancy since the pandemic. The key to success lies in a holistic approach to property management across all property types, considering the broader needs of the community and range of amenities that attract both tenants and local residents.

“The gap nobody is thinking about in multi-use is single-service delivery, which breeds efficiencies, higher revenues and a superior experience,” said Sean McNamara, Director of National Accounts and Head of Mixed-use Property Management at JLL. “There are a lot of reasons why an investor client would look at this and want that instead of a clunky, bifurcated and siloed model. It just makes sense.”

The Plaza Coral Gables has become an aspirational vision of the potential of live-work-play spaces to reinvigorate communities. Sprawling across seven acres and 2.25 million square feet, the historic readaptation of the Coral Gables Crafts Section has revitalized a neglected neighborhood into the largest mixed-use development in Coral Gables, Florida. A thriving home for Class A office spaces, retail and luxury residential units, the mixed-use property includes a hotel and entertainment complex, complete with conscious LEED for Neighborhood Development (LEED ND) certification to enhance the health, natural environment, and quality of life of its residents. 

While the benefits are significant, this type of transformation comes with its own set of property management challenges. Determining the right mix of amenities requires reconfiguring spaces to accommodate these new functions, along with a versatile property management team capable of handling the varied demands of a mixed-use space. Adopting a hospitality-focused approach can help manage these complexities and elevate the overall customer experience.

Security is another critical concern. With extended operating hours and increased public access, tailored security programs are essential to ensure the safety of all users. Additionally, operational costs related to mechanical systems, energy, IT infrastructure and communications will need reassessment, and some expenses may be offset by renegotiating ancillary services.

Owners must also navigate external factors, such as liquor license availability, varying real estate tax rates and existing ownership agreements. By understanding these challenges and planning strategically, building owners can successfully reinvent their properties.