A notable shift in the way we live, work and play has occurred since the pandemic — one that emphasizes efficiency, multi-functionality and convenience. The result has been an increase in the demand and popularity of mixed-use developments. Developers love them for their efficiency. Investors love them for their diversity. And consumers love them for their ability to achieve said live-work-play trifecta all under one roof.
Within Orange County, South Coast Metro stands out as an area that fosters this type of urban development, blending retail, multifamily, office and cultural assets in a way that fosters economic growth and community engagement. Adjacent to John Wayne Airport, this 2,500-acre district shows how strategic development can create a self-sustaining urban environment.
A Retail Powerhouse with Expanding Opportunities
South Coast Metro is arguably most known for being the home of South Coast Plaza. The West Coast’s largest luxury shopping destination saw record annual sales exceeding $2.3 billion in 2023. While luxury retail remains a major draw, the broader South Coast Metro caters to a diverse range of shopping experiences, which includes the boutique-driven OC Mix and SoBECA District, as well as major national retailers. This variety underscores a key trend in commercial real estate: successful urban centers must offer a mix of high-end, experiential and convenience retail to remain competitive as consumer preferences rapidly evolve.
The Evolution of Mixed-Use Living
One of the most notable transformations within South Coast Metro is the shift toward high-density, mixed-use residential development. Related Bristol, a 41-acre urban community currently in the works, highlights another trend. It’s a growing movement that replaces outdated retail and parking-heavy sites with those that can offer a variety of services, such as dining, hospitality and open space. These newer developments tend to emphasize pedestrian access, along with residential components and services. This type of supply is much needed in Orange County (and around the country), which faces ongoing housing challenges.
Office Space as a Strategic Investment
Some aspects of Orange County’s office market have faced post-pandemic headwinds, but South Coast Metro is holding its own. That’s because it continues to attract tenants seeking a well-connected, amenity-rich environment. Recent leasing activity at Metro Pointe, Hutton Centre and Sandpointe shows companies are increasingly prioritizing locations that align with their brand, while providing access to a strong workforce.
New tenants range from financial and legal firms to healthcare providers and technology companies, once again highlighting the diversity investors hope to achieve on their tenant rosters. Current leasing activity also underscores the importance of office developments that integrate with vibrant, mixed-use environments as opposed to stand-alone corporate campuses.
Arts and Culture as Economic Drivers
South Coast Metro is known for its arts and culture scene. The Segerstrom Center for the Arts, South Coast Repertory and the Orange County Museum of Art all contribute to the district’s appeal, enhancing its status as more than just a commercial hub. As cities across the country look for ways to reinvigorate urban centers, South Coast Metro provides a compelling case for investing in cultural institutions as a means of driving foot traffic, tourism and long-term economic stability.
South Coast Metro’s success lies in the urban center’s ability to adapt to changing economic conditions while maintaining its role as a regional hub. It has done this by shifting to a more walkable, multi-use environment that can conveniently take patrons from home to work while providing ample opportunities for socializing (live-work-play).
— By Nellie Day. This article was originally published in the February 2025 issue of Western Real Estate Business.