At JR Mercantile Real Estate Advisors Inc., we work with a variety of commercial properties throughout Calgary, ranging from high-performing standalone retail units to vibrant multi-tenant plazas. However, our specialty lies in mixed-use developments—a dynamic property type that is playing an increasingly important role in the evolution of Calgary’s urban fabric.
Understanding the differences between mixed-use and traditional retail real estate is essential for tenants, investors, and developers looking to make informed decisions in a rapidly shifting market. Here’s a breakdown of what sets them apart:
1. Purpose and Integration
Mixed-Use Real Estate: Mixed-use developments combine two or more uses—typically residential, commercial, office, and sometimes hospitality—within a single property or block. The commercial component is often located at street level, with residential or office space above. This integration supports a live-work-play lifestyle and fosters a built-in customer base for businesses.
Traditional Retail Real Estate: Retail-only properties are dedicated spaces designed solely for commercial use. These can range from standalone stores and strip malls to large-format power centres. Unlike mixed-use spaces, retail properties focus entirely on serving external consumer traffic and often rely on nearby population density and vehicle access for success.
2. Tenant Mix and Foot Traffic
Mixed-Use: In a mixed-use development, the retail tenants benefit from captive foot traffic from residents and office workers who live or work within the same building. This environment naturally supports cafes, personal services, boutique fitness, and convenience-based businesses that cater to daily routines.
Retail: Standalone retail properties must attract foot traffic independently, typically through strong signage, easy access, parking availability, or destination-based appeal. Tenant mix is often more strategic, aiming to create synergies between anchor tenants and smaller retailers to draw consistent customer flow.
3. Development and Design Considerations
Mixed-Use: Developing mixed-use projects is more complex due to the coordination required between different building systems, uses, zoning bylaws, and architectural requirements. It involves careful planning to balance privacy and accessibility, ensure efficient utility separation, and meet building codes for multiple uses.
Retail: Retail developments tend to be more straightforward in design and construction. They are typically single-storey or low-rise buildings with uniform commercial zoning and infrastructure, making them faster to build and easier to lease in conventional markets.
4. Investment and Risk Profile
Mixed-Use: These properties can offer diversified income streams—from residential leases, commercial rents, and sometimes office or hospitality components. This diversification helps reduce risk during economic fluctuations affecting a single sector. However, the complexity of operation and higher upfront costs may require more experienced investors or developers.
Retail: Retail properties are often simpler to manage and easier to underwrite. Investors can target specific types of tenants (e.g., national chains, local boutiques), but retail is more sensitive to shifts in consumer behavior and economic downturns—particularly for discretionary goods and services.
5. Community and Urban Impact
Mixed-Use: These projects contribute to urban density, walkability, and sustainability. They align well with Calgary’s municipal goals for smart growth and vibrant communities. When well executed, they help activate streetscapes, support transit-oriented development, and improve neighborhood vibrancy.
Retail: While retail developments are essential to economic activity, they typically have less impact on urban placemaking unless part of a larger community plan or town centre. However, they remain crucial for convenience and anchor-based shopping needs.
Why It Matters
At JR Mercantile, we are proud to be at the forefront of commercial leasing within Calgary’s most exciting mixed-use developments, including Two Park in the Beltline and Madison in Marda Loop. While we work across a range of commercial property types, our expertise in mixed-use real estate allows us to offer unique insights into projects that are reshaping the way people live, work, and shop in Calgary.
Whether you’re a tenant looking for the right fit, or a developer seeking strategic guidance, our team is here to help you unlock the potential of Calgary’s evolving commercial landscape.
Contact us today to learn more about how we can help you achieve your commercial real estate objectives with confidence and certainty. You can reach out to us at either http://www.jrmercantile.com , 403-770-3071 or at hello@jrmercantile.com.
Image Credits: JR Mercantile Website