When people hear the term “mixed-use real estate,” they might think of an apartment building with retail shops on the ground floor, or an office park featuring a hotel and a few restaurants. Lately, a new type of mixed-use development is gaining momentum across the U.S.: the entertainment or “lifestyle” district. Entertainment districts that are anchored by major venues consistently outperform market fundamentals, and JLL predicts that these properties will grow to represent 30% of national office inventory by 2040 (compared to 4% now). Mixed-use developments anchored by arenas and stadiums are key drivers of this trend.

What defines an entertainment district?

An entertainment district is one variation within a category of mixed-use development also known as lifestyle office markets. These developments are characterized by attributes including:

Convenient transit options

Diverse, high-end property types

The popularity of these modern mixed-use developments reflects post-pandemic demographic shifts and a growing desire for live-work-play environments among residents of urban and suburban settings. Lifestyle districts offer people places to engage with others and establish a sense of community beyond their homes and workplaces.

The numbers back up the trend: According to a recent report, office properties in lifestyle office markets command a 32% rent premium over other Class A office space. Sports and entertainment venues, waterfront locations and green space are among the top amenities enhancing rent premiums. Entertainment districts also support increased attendance at sports venues —........

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