"Looking ahead, the case for mixed-use development is only strengthening. Consumer expectations have shifted towards integrated neighbourhoods where home and leisure coexist. Hybrid working has further accelerated this demand, with people seeking flexibility and proximity. "
- Martin Lemke - AM Alpha
The UK’s city centres are in transition. The high street, once the focal point of urban life, has been in decline for decades, and retail alone cannot sustain its vitality or drive growth. Instead, changing patterns of work, leisure, and consumption demand a new model – one that presents a significant opportunity for real estate developers.
Mixed-use development is emerging as the answer. By bringing together housing, offices, culture, leisure and hospitality, these schemes create places that are economically resilient, socially inclusive, and environmentally sustainable. These projects are no longer marginal but are becoming central to the way cities regenerate.
The data reflects this shift. In the first quarter of 2025, local authorities in England received almost 91,000 planning applications, six per cent more than in the same period in 2024. Yet approvals for both housing and commercial schemes have fallen, indicating that delivery is tightening even as demand evolves. Against this backdrop, mixed-use development provides a route to balance risk, secure investment, and meet the expectations of modern urban life.
The decline of the high street
The structural weaknesses of the retail-led model are well established, with store closures continuing to outpace new openings. Footfall remains below pre-pandemic levels, with a national shortfall of around 12.7 per cent compared with 2019. Costs for operators have risen across energy, business rates and staffing, while online retail continues to grow.
Retail alone is too fragile to underpin city centres. Mixed-use schemes, by contrast, allow one function to support another. Offices generate activity during the day, residents provide steady demand for services, and leisure sustains evening economies. Together, these uses stabilise local centres and protect them from volatility.
The opportunity of mixed-use success
Mixed-use development has the potential to transform city centres into genuine 24-hour neighbourhoods. Residential, commercial, and cultural elements combine to attract diverse groups of people at different times of day. This strengthens local economies and makes urban centres more attractive to residents, workers, and visitors alike, boosting the national economy too.
The model also supports sustainability. When people live closer to where they work and spend their leisure time, the amount of commuting naturally reduces. Public transport is better utilised, and public spaces are more active, resulting in a more efficient and lower-carbon urban fabric.
Building authentic communities
The real strength of mixed-use development lies not only in economic resilience but in placemaking. Successful schemes go beyond functional integration to create communities with identity and appeal. Public spaces, cultural venues, and green infrastructure generate interaction and civic pride. Similarly, the retention and reuse of heritage assets add authenticity and facilitate public support.
Placemaking ensures that developments are more than clusters of buildings. They become neighbourhoods that people choose to belong to, where daily life feels connected and purposeful. This community dimension is what sustains city centres over the long term.
Manchester provides a clear example of momentum in this direction. The city centre population is projected to reach 100,000 by 2026, supported by significant employment growth over the coming decades.
With such an influx into the city centre, people want convenience and quality from the buildings they visit. Schemes like our Rylands development are a great example of how to use mixed-use to create destinations. They welcome people for work and play, encouraging increasing footfall to drive both regeneration and growth.
Commercial developers must pivot strategies
Looking ahead, the case for mixed-use development is only strengthening. Consumer expectations have shifted towards integrated neighbourhoods where home and leisure coexist. Hybrid working has further accelerated this demand, with people seeking flexibility and proximity.
Policy is also moving in the same direction, with local authorities prioritising regeneration and the adaptive reuse of redundant retail assets. Planning frameworks are increasingly supportive of mixed uses, particularly where schemes contribute to housing delivery, sustainability, and public realm improvements.
For investors, mixed-use is also a strategy of risk management. Retail remains volatile, but residential demand and well-specified offices continue to attract occupiers. Leisure and hospitality, particularly in experience-led formats, are also rebounding. By diversifying functions, developers spread exposure and build long-term stability.
Shaping stronger cities
Quite simply, if we want resilient cities, mixed-use schemes are non-negotiable. They’re the developments that will futureproof regional economies and strengthen communities, all while encouraging decarbonisation across the built environment.
Manchester already shows how this approach can succeed, but the opportunity is far wider. Developers who engage early with planners, invest in the public realm, and deliver high-quality, characterful projects will come out on top.
