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Mixed-use developments are becoming ever more popular. They accounted for about 80% of the more than $1.328 trillion spent on construction projects in 2017. It turns out that mixed-use developments are highly desirable for both investors, developers, retailers, and people looking to live in a mixed-use area.

Land is a scarce commodity that cannot be created in a factory like a toy or a phone. It turns out that mixed-use developments are a very effective use of land. The mixture of commercial, retail, residential, medical, and recreational facilities in a mixed-use development allows developers to fit a lot of different buildings in a plot of land.

Urban and space-constrained areas near water are witnessing a boom in mixed-use development because such a development plan is often the most effective use of land. Not only are mixed-use developments an effective use of space, but they are also often very profitable in the short-term and long-term for the builders and investors. They are also less risky as an investment and project.

Consider the following scenario. A developer builds an office park with hundreds of offices. Another developer builds a mixed-use development that has office space, residential units, retail, and a medical facility. The mixed-use development has more variety and thus, less risk. The office park is vulnerable to a downturn in the economy, and if people suddenly stop leasing office space. Risk is more spread out in mixed-used developments, and this is highly appealing to the builders and investors.

The investors and developers are not the only ones clamoring for mixed-use developments. It turns out that a sizeable part of the population wants to live in such an environment. The millennial and younger generation is especially drawn to such areas for a number of reasons.

Convenience is one of the biggest draws of people wanting to live in a mixed-use development. They want to be able to walk to shops, restaurants, and work. These same people also want pedestrian and bike-friendly paths to walk the dog, jog, and bike. A mixed-use development offers all of this and more to residents of such a development.

Mixed-use developments are on the rise because they are an extremely effective and economical use of land. You can pack a lot of variety and buildings in such a development. Investors and developers love them because they are less risky than other projects and have better than average returns on the investment. People love them because of the convenience and amenities they offer.