The Mixed-Use Shift in the 2026 Pipeline

The News

Simon Property Group is investing more than 250 million dollars to upgrade three upscale retail centers, according to ICSC reporting, including a 50,000 square foot open-air expansion at International Plaza in Tampa, revamped storefronts at Cherry Creek Shopping Center in Denver, and luxury jewel-box spaces at The Mall at Green Hills in Nashville. Construction is expected to start this year.

Nashville Premium Outlets is set to break ground in 2026 on a 325,000 square foot mixed-use center with preliminary plans for 75 stores, restaurants, and a hotel. Separately, ICSC tracked six retailers planning to add more than 1,200 stores anchored to pro-sports mixed-use projects in Georgia and Arizona.

The pattern across these projects is consistent: new ground-up retail development is increasingly happening within mixed-use envelopes rather than as standalone shopping centers.

Why the Shift Is Happening

Pure retail development has gotten harder to underwrite. Construction costs are high, financing is expensive, and consumer pressure on standalone retail centers has been real. Mixed-use development blends retail with residential, hospitality, office, or entertainment, which spreads risk across multiple revenue streams and creates built-in foot traffic.

The economics also favor mixed-use in zoning and entitlement contexts. Many municipalities are more willing to approve dense mixed-use than another standalone retail center. The combination of better economics and easier entitlements is pulling new development toward mixed-use formats almost by default.

What This Means for Operators

For multisite retail operators evaluating new sites, mixed-use development changes several things about the deal and the buildout.

The co-tenancy mix is different. Instead of comparing yourself to the other retailers in a power center, you are comparing to a mix of restaurants, residential, and possibly hotel or office. Foot traffic patterns and timing differ. Lease structures are often more complex, with provisions tied to the broader development's milestones. Construction logistics are harder, with shared loading, restricted hours, and coordination across multiple GCs working on different parts of the project.

None of this is a reason to avoid mixed-use sites. Many of them will outperform standalone retail. But operators using their old standalone-center playbook for mixed-use sites will hit surprises.

What Operators Should Do

Three practical adaptations for the 2026 pipeline:

• Update site evaluation criteria for mixed-use specifics. Co-tenancy quality, residential unit count, hospitality keys, and shared amenity strength all become inputs to your underwriting.
• Build relationships with mixed-use developers, not just traditional retail landlords. The deal flow for new retail space increasingly comes through them.
• Update your lease and work letter templates for mixed-use complexities. Construction coordination, common area definitions, and operating hours rules differ materially from standalone retail centers.
• Train your construction teams for mixed-use environments. Shared sites, restricted access, and coordination with other developments' contractors require different operational practices.

Sources

Reporting referenced in this article:

• ICSC, $1.2B Fund Launch, Mall Makeovers, Megaproject Boom - https://www.icsc.com/news-and-views/icsc-exchange/1.2b-fund-launch-new-plans-for-2-malls-megaprojects-multiply-expansions-for-4-chains-and-more
• ICSC, 6 Retailers Plan 1,200+ Stores as Pro Sports-Anchored Mixed-Use Projects Take Shape - https://www.icsc.com/news-and-views/icsc-exchange/6-retailers-plan-1200-stores-sports-anchored-mixed-use-projects-in-georgia-and-arizona
• ICSC, Retail Outlook for 2026 - https://www.icsc.com/news-and-views/icsc-exchange/retailer-updates-development-investment-financing-news-gbt-concorde-simon-ggp-more