Trends Shaping the Future of Downtown Areas

Four promising trends driving design innovation now Commercial real estate is entering a new era—one shaped by technology, sustainability, and evolving expectations about how and where we work. This moment offers an opportunity to reimagine the built environment, aligning innovation with human-centric design.  More than ever, it's important to create spaces that blend experience, flexibility, and tech integration—while also enhancing wellbeing and fostering connection. Pure aesthetics won’t cut it anymore. Trend #1: Designing for a ‘street to seat’ experience  This strategy prioritizes seamless transitions—from city streets to workstations, retail, and entertainment—by incorporating high-quality shared amenities, end-of-commute facilities, and curated retail and dining experiences. In workplaces, this translates to smarter booking systems, distinctive space designs, and tailored perks that make offices more inviting.   Trend #2: Reimagining spaces for social connection and community  After years of fluctuating office attendance, our research shows that the top reasons people return to the office are social connection and office culture. Well-designed spaces that foster collaboration and belonging are becoming a must-have in both workplaces and neighborhoods.  That’s why forward-looking organizations are working with psychologists and social scientists to design environments that promote authentic interactions—from shared dining experiences to immersive event spaces. This approach offers a competitive edge in a market where connection-driven spaces stand out. Trend #3: Unlocking value through adaptive reuse and retrofitting  With growing sustainability demands, clients are investing in adaptive re-use and retrofitting to meet environmental and social needs. In 2025, we’re seeing more focus on energy efficiency, wellness features, and aligning branding with sustainability goals.  The shift reflects changing employee and consumer expectations. JLL research shows 60% of employers plan to increase investment in building refurbishments and sustainability over the next five years. Properties embracing urban regeneration, circular design, and green spaces will command premium market positions as they increase visibility around their eco-credentials. Trend #4: Embracing AI tools for science-led design  From generative AI shaping architectural concepts to neuroscience-driven workplace optimization, its impact is accelerating—and many organizations are exploring how to apply it effectively. Emerging fields like neuro-architecture are showing how AI can combine psychology, biomedicine, and environmental science to optimize spaces for wellbeing and productivity.    Together, by combining research-driven insights, people-centric strategies, and cutting-edge technology, we're helping our clients create spaces that don’t just keep up with change—they set the standard for what’s next. 

From Office Districts to Vibrant Mixed-Use Hubs Central Business Districts (CBDs) worldwide are at a turning point. The COVID-19 pandemic accelerated existing challenges, particularly the rise of hybrid working, leaving many cities with underused office space. The response has been a shift from monofunctional business zones towards mixed-use districts that combine living, working, culture, and leisure. The recent publication by the Centre for Liveable Cities (CLC) in collaboration with Arup (Agnes Won Sohyun, Alison Lee, Chintan Raveshia, Andrew Hodgson, among others) highlights how cities across the globe are navigating this transition. It shows that no single model fits all, but common strategies emerge. Singapore’s CBD Incentive Scheme promotes adaptive reuse of office space. Glasgow’s Avenues Programme redesigns streets to prioritise pedestrians and active mobility. New York’s Open Streets initiative demonstrates the power of reclaiming road space for public life. Bogotá’s Bronx Creative District illustrates how cultural transformation can redefine the identity of a troubled neighbourhood. The study identifies several key directions for the future of CBDs. First, they need to cultivate a distinct identity and clear value proposition in order to compete for talent and investment. Second, they must evolve into vibrant 24-hour destinations by encouraging the night-time economy and placemaking initiatives. Third, flexible regulation and targeted incentives are required to support adaptive reuse, while climate adaptation and sustainability have to be embedded in all interventions. Finally, collaboration between governments, businesses, and communities remains essential to ensure long-term resilience. Examples from Asia-Pacific, Europe, and the Americas illustrate different trajectories of recovery and transformation, but all underline the importance of polycentric development and data-driven governance. Cities such as Sydney and Glasgow already use dashboards to monitor visitor flows and economic performance, turning data into a strategic compass for decision-making. The overarching message: CBDs can no longer rely solely on premium office towers. Their survival and success depend on becoming connected, distinctive, integrative, vibrant, and responsive city districts. #UrbanPlanning #CityMaking #CBD #Placemaking #ResilientCities #MixedUseDevelopment

Let's talk downtowns! We see many cities trying to grow downtown visits - the days of relying on a "captive audience" of office workers to fill our downtown restaurants and shops have officially shifted. The latest Placer.ai data shows a new reality: the 9-to-5 cubicle crowd isn’t the automatic foot traffic engine it used to be. But there's good news—people are still choosing downtown; they're just doing it for the experience rather than the requirement. What the shift looks like: 1. The weekend win: While mid-week mornings are quieter, weekends have almost fully recovered (trailing 2019 by only ~3%). People are coming back because they want to be there. 2. The "routine" vs. the "intentional": The biggest gaps are in those old 7 AM to 3 PM coffee and lunch runs. The "built-in" traffic is lighter, which means we have to give people a specific reason to show up during the day. 3. The evening anchor: Nightlife is resilient. Dinner, drinks, and evening culture are often the strongest parts of the downtown day. SO - how can we bridge that weekday gap? First, check your own data. These trends are seen across many downtowns, but every city has a different pulse. Check the data to see exactly when your "gap hours" are so you can stop guessing and start building for the crowd that's actually available. Then think about some fresh ways to spark daytime energy - some ideas off the top of my head: 🌳Build the "outdoor office": Hybrid workers are often looking for a change of scenery. Install shaded seating with solar-powered charging stations and high-speed public Wi-Fi in your central plazas. If people can "work from the park," they’ll buy lunch and coffee while they’re at it. Make parking free during those daytime hours - simple, but definitely makes an impact. 🎨 Target the non-office demographic: Shift some programming to the 10 AM – 2 PM window. Think stroller-fitness classes in the square, mid-day "lunch and learn" artist talks, or senior social hours. Capturing the folks who aren't behind a desk can fill those quiet cafes. Mid-week "mini" festivals: Why wait for the weekend? A Wednesday food truck rally or a regular pop-up farmers market on a Thursday morning turns a regular workday into an intentional destination. ☕ The digital nomad bundle: Encourage local shops to offer mid-day incentives—like a "work-from-here" pass that includes a reserved table, 3 hours of Wi-Fi, and bottomless coffee for a flat fee. It cab turn a quiet shop into a buzzing community hub. The old downtown was a workplace. The new downtown is a destination. How are you seeing this play out in your city? Are you trying any creative ways to pull people in during the week? (Full article linked in comments) #downtownrecovery #urbanplanning #civicleadership #economicdevelopment

The pandemic didn't signal the decline of downtowns. Instead it has cast a bright light on an era of unprecedented downtown opportunity--headlined by three core trends: 1) Net new households for the next two decades (the housing market, which in turn represents 2/3 of North America's real estate economy) will be dominated by singles and couples without kids--creating the strongest urban housing market at least since WWII. 2) Knowledge and innovation industries will dominate economic growhth for the next two decades. These industries follow increasingly scarce talent to the same lively, mixed-use, walkable places (think downtowns) that increasingly attract residents. 3) Downtowns are not only our region's common grounds--they are the places that showcase our living culture of art, music, fool and other forms of expression that in turn draw tourists, conventions, and others to visit our cities and regions.

Downtown isn’t dead. It’s just been miscast. For decades, we’ve tried to force downtowns to be the center of the financial universe—corner offices, 8–5 foot traffic, and expensive parking as a badge of honor. That model is broken. The future of downtown isn’t competing with suburban office parks. It’s embracing what those places can never replicate: arts, culture, sports, entertainment, walkability, and density. In my latest CRE Professor blog, I make the case that downtown should be viewed as the city’s coolest suburb—the living room of the region, not the accounting department. If we stop chasing yesterday’s office demand and start investing in experience, placemaking, and people, downtowns don’t decline—they evolve. 👉 Why downtown as a “high-density suburb” is actually a winning strategy 👉 What COVID exposed about office-centric downtowns 👉 How this mindset changes development, investment, and policy decisions Read the full post and tell me if you agree—or if downtown still needs a necktie. #CRE #DowntownDevelopment #UrbanPlanning #MixedUse #Placemaking #TheCREProfessor

Urban planners are rethinking how stadiums fit into the fabric of a city. Instead of sitting as isolated venues, sports-anchored districts are becoming engines of revitalization—designed to blend seamlessly with neighborhoods and drive year-round activity. Examples include: Edmonton’s ICE District, reshaping downtown with housing, retail, and entertainment; Columbus’ Nationwide Arena District, turning a former industrial site into a walkable hub; Calgary’s Culture + Entertainment District, weaving together sports, arts, and housing; St. Louis’ CITYPARK MLS stadium, anchoring new mixed-use growth in the heart of downtown; and Detroit’s District Detroit, transforming vacant blocks into a vibrant destination. Each shows how sports-led planning can reignite economic growth and strengthen community identity. The impact goes beyond game day: - Walkability & Connectivity → Stadiums linked to transit, retail, and housing strengthen community ties. - Mixed-Use Activation → Restaurants, parks, and hotels keep districts vibrant long after the final whistle. - Inclusive Growth → Projects that combine housing (including affordable units), civic spaces, and entertainment help shape resilient, equitable cities. When done right, these developments aren’t just about sports—they’re about placemaking—creating destinations that celebrate local culture, attract investment, and foster sustainable growth. 📖 Full article from HOK here: 5 Ways Sports-Anchored Districts Are Revitalizing Cities - https://lnkd.in/gCuwrB6G #UrbanPlanning #CityRevitalization #SportsBusiness #StadiumDesign #Placemaking #EconomicDevelopment #FutureOfCities #HOK #HOKarchitects

State of Downtown, End of 2025 As its unofficial mayor, this is my state of Downtown as we close out 2025. In my eight years living downtown, I have never been more optimistic heading into a new year than I am going into 2026. The meetings I have been part of, the people I have talked to, the events I have attended, and the ideas we have discussed for years are finally coming together and becoming real in 2026. Will there still be companies that leave downtown? Probably, yes. Some may even announce it next week, the week after, or early in January. That is okay. What matters more is that the pieces are finally aligning. The Entertainment District is coming together with a clear purpose: additional security,and ticket guarantees that make it easier to land and retain major events. At the same time, downtown stakeholders—property owners, business leaders, institutions, and civic groups—are increasingly in the same room, having focused conversations about how we market downtown better, how we grow the residential base, and how that growth creates a domino effect for retail, restaurants, and small businesses. Over the last year, new investors have joined the downtown community. They are not just watching, they are looking to do more. The Gateway Arch Park Foundation is advancing transformative plans, including major progress on expanding the Arch grounds into Illinois, capping the highway, and finally reconnecting the city to its front yard and the massive millennium site project will inch closer to reality in 2026. New + Found is making a significant investment to reimagine the Mansion House. Union Station is set to announce something very big and very exciting in January, building on the two and a half million visitors it already brings downtown every year. At the same time, Mayor Spencer, working alongside GSL, is actively focused on bringing companies back to their home—to come back downtown where they belong. In 2026, I believe the companies that return, and the people they bring with them every day, will far outweigh those that choose to leave. Will there be challenges next year? Absolutely. Will some companies decide not to buy into the work so many people are committed to? Yes. But despite that, or maybe because so much effort is finally aligning, 2026 is shaping up to be one of the best years downtown has ever had.

Cities compete for investment, talent, visitors, events and reputation, and as the dynamic core of a city, a Central Business District (CBD) must stay agile, seeking improvement and innovation. | Andrew Hodgson CBDs are historic city cores that portray varying characters across nations; formal employment, recreation and housing in the case of developed nations, whereas, unorganized business sector, dying heritage and dilapidated housing in the case of developing ones. Despite the diversity in character, these urban cores significantly contribute to the city's economic health; typically 10-20% of the city’s GDP. Apart from the impacts of urbanization and climate change, cities need to address the evolving market dynamics and planning paradigms to attract development opportunities as well as investments in CBDs. This would require identifying specific actions for: ▪️ Land Availability for Development ▪️ Diversified Activities ▪️ Redevelopment ▪️ Inclusivity ▪️ Quality Infrastructure ▪️ Affordable and Liveable Housing As per the recent study by the Centre for Liveable Cities and Arup i.e., “The Future of CBDs - Perspective from 6 APAC Cities”, 5 dimensions would drive CBDs towards sustainable development. ▪️ Connected promote seamless regional and local connectivity and accessibility to the CBD via efficient road network, and integration of multiple sustainable modes of transport. ▪️ Distinct coproduce ideas for development of local assets (commercial, heritage, recreation and housing) to encourage distinctiveness and stimulate economic growth. ▪️ Inclusive promote mixed land uses with diverse activities in proximity to reduce the demand for travel while developing integrated and safer public spaces for all ages and genders. ▪️ Vibrant invest in night-time economy to attract visitors beyond conventional working hours, develop active spaces and foster stewardship among the stakeholders. ▪️ Resilient revitalise underutilised assets, both spaces and buildings, with the highest quality of sustainable standards; thus providing CBDs with a competitive edge over other urban centres. Since cities are already undergoing decentralisation and establishing new urban centres, the local governments need to invest significantly in the integrated development of CBDs; so that they remain relevant. Chintan Raveshia | Hugh Lim | Agnes Won Sohyun | Alison Lee | Limin Hee | Shawn Tan | Hedgehog Communications LLP Report Link | https://lnkd.in/gjrXqcvy #cities #urbancenter #cbd #urbanization #climatechange #sustainabledevelopment #urbanplanning #integratedplanning #inclusive #esg #diversity #environment #connected #distinct #inclusive #vibrant #resilient #businesses #economicgrowth #infrastructure #tod #mixeduse #nmt #activemobility #placemaking #safety #redevelopment #agile #innovation