Mixed-Use Development and Zoning Trends in West Michigan

David Manley
Nov 3, 2025
3 min read

What Is “Mixed-Use” Development?

A mixed-use property blends multiple uses — typically residential, commercial, and sometimes civic — into one cohesive project. Think: apartments over retail, offices above restaurants, or live-work units for entrepreneurs.

In Michigan, mixed-use zoning is increasingly favored by planners who want walkable, vibrant downtowns instead of isolated strip malls or subdivisions.

Example: Downtown Muskegon’s Western Avenue corridor features apartments, breweries, and retail all in the same blocks — a classic mixed-use success story.

Why Cities Are Pushing for It

Michigan municipalities, guided by Master Plans and the Redevelopment Ready Communities (RRC) framework, are rewriting zoning codes to attract compact, mixed-use projects that:

Increase tax base per acre
Reduce sprawl and infrastructure costs
Revitalize vacant downtown corridors
Support public transit and walkability
Create “24-hour economies” with consistent foot traffic

Key Policy Shift: Many cities are replacing strict “use-based zoning” with form-based codes that emphasize design, density, and street presence over use separation.

Common Mixed-Use Zoning Types in West Michigan

Zone Type	Primary Use	Typical Examples
Downtown Core (C-1 or MU-1)	Retail + Upper-Floor Residential	Grand Haven, Holland
Neighborhood Center (C-2)	Offices + Small Shops + Lofts	Norton Shores, Muskegon Heights
Corridor Redevelopment (MU-2)	Mixed Commercial + Apartments	Apple Avenue Corridor
Waterfront Mixed-Use (WMU)	Tourism + Residential + Marina	Muskegon Lakeshore

Pro Tip: Always confirm local parking minimums — many mixed-use districts in Michigan now waive or reduce parking ratios to encourage density.

Financing and Incentives

Mixed-use projects can qualify for multiple funding layers:

MEDC Community Revitalization Program (CRP) Grants
Brownfield TIF reimbursements (for site cleanup or infrastructure)
Historic Preservation Tax Credits (for adaptive reuse)
Local façade or downtown improvement grants

Example: A developer converting a 1920s building in Holland into retail + lofts secured both CRP and Historic credits, covering 25% of project costs.

Design and Building Code Considerations

Because mixed-use involves different occupancies (residential, assembly, commercial), developers must meet Michigan’s Building Code (2015 MBC) separation standards for:

Fire suppression
Sound insulation
Accessibility (ADA)
Egress requirements

Pro Tip: Engage an architect early — many smaller Michigan cities require site plan review before building permits are issued.

Market Trends and Demand

Remote work has boosted demand for live-work spaces.
Millennials and empty nesters are driving walkable urban housing.
Retail recovery post-COVID favors smaller storefronts with residential foot traffic.
Municipal grants are incentivizing adaptive reuse of old schools, factories, and warehouses.

Michigan Spotlight: Muskegon’s mixed-use renaissance (Terrace Point, Lakeview Lofts, and Adelaide Pointe) has become a model for mid-sized city redevelopment nationwide.

Key Risks and Realities

Construction costs can run 20–30% higher than single-use builds.
Zoning overlays can require variances or public hearings.
Managing multiple tenant types (residential + retail) demands robust systems.

Investor Tip: Partnering with local economic development agencies can shorten approval timelines dramatically.

Final Thoughts

Mixed-use projects are reshaping the identity of West Michigan communities — from walkable downtowns to revived waterfronts. For investors, they offer diversification, resilience, and strong long-term value appreciation when executed correctly.

If you’re exploring adaptive reuse or mixed-use development opportunities in Muskegon, Grand Haven, or surrounding markets, I can help analyze zoning overlays, coordinate incentive applications, and connect you with proven design-build teams.

Because the future of real estate in Michigan isn’t just about square footage — it’s about synergy.