Aliso Viejo, a master-planned community nestled in the heart of Orange County, California, has long been celebrated for its thoughtful design, abundant green spaces, and family-friendly atmosphere. As the city approaches full build-out, with little undeveloped land remaining, its leaders and developers are turning to innovative mixed-use projects to redefine its future. These developments, blending residential, commercial, and recreational spaces, are not only revitalizing the city’s infrastructure but also enhancing its appeal as a place to live, work, and play. In this blog post, we’ll explore how mixed-use projects are shaping Aliso Viejo’s evolution, spotlighting key initiatives like The Commons and Avalon Aliso Viejo, and examining the broader implications for the city’s residents and economy.
The Evolution of Aliso Viejo: A Foundation for Mixed-Use Growth
Since its inception, Aliso Viejo has been a model of intentional urban planning. Unlike its predecessor, Mission Viejo, which prioritized convenience over community cohesion in the 1960s and ‘70s, Aliso Viejo was designed with a central commercial core surrounded by residential neighborhoods. This layout, established in the late 20th century, aimed to balance job opportunities with housing, a pioneering concept for its time. Today, with a population nearing 50,000 and a thriving business sector, the city is leveraging this foundation to embrace mixed-use developments that align with modern urban living trends.
The shift toward mixed-use projects reflects a broader movement in suburban areas across the United States. Residents increasingly seek walkable, self-contained communities where they can live close to shops, dining, and entertainment without relying heavily on cars. For Aliso Viejo, a city with a motto of “Live, Work, Learn, Shop, and Play,” this evolution feels like a natural progression. But with limited greenfield space, the focus has shifted to reimagining existing properties—transforming underutilized commercial sites into vibrant, multi-purpose hubs.
The Commons: A Retail Renaissance with Residential Potential
One of the most prominent mixed-use projects in Aliso Viejo is The Commons, a 21-acre development spearheaded by ValueRock Realty. This ambitious initiative, which celebrated its grand opening in December 2024, redeveloped a vacant 200,000-square-foot Lowe’s store into a bustling community center. The first phase of The Commons introduced a dynamic retail component, featuring tenants like Tesla, 99 Ranch Market, Daiso, Philz Coffee, and a forthcoming Bowlero entertainment venue. These additions cater to a diverse range of needs, from grocery shopping to leisure, ensuring the site appeals to both residents and visitors.
What sets The Commons apart, however, is its forward-looking vision. Beyond its retail offerings, the project includes plans for a 343-unit residential community. This residential component, still in the proposal stage as of early 2025, promises to integrate housing seamlessly with the commercial space, creating a true live-work-play environment. The redevelopment process itself is a testament to adaptive reuse—a strategy gaining traction as cities grapple with the decline of big-box retail. ValueRock acquired the initial parcel in 2015 for $62 million and negotiated a lease termination with Lowe’s in 2019, paving the way for this transformation.
For Aliso Viejo, The Commons represents more than just economic revitalization. It’s a response to California’s Regional Housing Needs Assessment (RHNA) requirements, which mandate the city to accommodate 1,195 new housing units by 2029. By incorporating residential units into a commercial redevelopment, The Commons helps Aliso Viejo meet these goals while preserving its small-town charm. The project also enhances the city’s tax base, drawing in revenue from retail sales and supporting local services like schools and parks.
Avalon Aliso Viejo: Elevating the Town Center Experience
Another transformative mixed-use endeavor is Avalon Aliso Viejo, a 4.4-acre project proposed by AvalonBay Communities within the existing Commons shopping center. Located at the intersection of Enterprise and Town Center, this development aims to capitalize on excess parking space originally earmarked for future growth. The plan envisions a blend of residential units, modern amenities, and open spaces designed to elevate the lifestyle of Aliso Viejo residents.
Avalon Aliso Viejo is still in its early stages, with no lease agreements finalized as of March 2025, but its conceptual framework is promising. The project team, led by TCA Architects, has prioritized integration with the surrounding environment. The design tucks into the hillside to minimize visual impact on nearby neighborhoods, using natural materials like stucco and glass to complement the area’s aesthetic. At five stories, the building steps down toward Enterprise, preserving views of the surrounding mountains and canyons—a nod to Aliso Viejo’s commitment to its scenic beauty.
This project also aligns with the city’s housing goals, contributing to the RHNA mandate while enhancing the Town Center’s role as a community hub. By offering “work-from-home” optimized spaces and pedestrian-friendly amenities, Avalon Aliso Viejo caters to the evolving needs of residents, many of whom now prioritize flexibility and convenience in a post-pandemic world. The collaboration with stakeholders and residents, emphasized through public outreach efforts, ensures the project reflects the community’s values and vision.
Broader Impacts: Sustainability, Economy, and Community
Mixed-use projects like The Commons and Avalon Aliso Viejo are reshaping Aliso Viejo in ways that extend beyond their physical footprints. Sustainability is a key driver, as these developments reduce car dependency by clustering essential services within walking distance of homes. This aligns with the city’s history of prioritizing green space—over half of Aliso Viejo is designated as parks and open areas, a rarity among South County communities. The Aliso Viejo Ranch project, approved in 2019, further underscores this ethos. Spanning seven acres, it combines historic preservation with sustainable agriculture, featuring orchards, vegetable gardens, and aquaponics to supply local food banks and educational programs.
Economically, these projects bolster Aliso Viejo’s competitiveness in a region where neighboring cities like Laguna Niguel and Lake Forest are also modernizing their commercial landscapes. The influx of high-profile retailers and entertainment options at The Commons, for instance, keeps local spending within city limits, while the addition of housing supports a growing workforce. Aliso Viejo’s white-collar economy—over 91% of its workforce is employed in professional, managerial, or technical roles—benefits from developments that attract businesses and talent alike.
For the community, the impact is equally profound. Mixed-use projects foster a sense of place, a quality that residents have increasingly demanded since the early 2000s. As Russ Parker of Parker Properties noted in a 1998 Los Angeles Times article about the Summit office campus, people no longer crave the isolated prestige of the 1980s; they want “a sense of place and a community.” Today’s developments echo that sentiment, offering spaces where families can shop, dine, and socialize without leaving their neighborhood. The City Council’s efforts to modernize the Town Center, including the Gateway District near the Edwards theater, further reinforce this vision, with charrette meetings engaging residents in the planning process.
Challenges and Opportunities Ahead
While the promise of mixed-use projects is clear, challenges remain. Zoning regulations, a critical factor in multi-use developments, can complicate construction timelines and costs. The Commons and Avalon Aliso Viejo must navigate these hurdles, ensuring compliance with local codes while balancing residential, commercial, and recreational needs. Community buy-in is another consideration—residents accustomed to Aliso Viejo’s suburban tranquility may resist denser, urban-style developments. Transparent communication, as seen in AvalonBay’s outreach efforts, will be essential to maintaining support.
Yet the opportunities outweigh the obstacles. Mixed-use projects position Aliso Viejo as a forward-thinking city, capable of adapting to demographic shifts and economic trends. With a population that’s culturally diverse—22.94% foreign-born and a mix of White, Asian, and Hispanic residents—these developments can cater to varied lifestyles, from young professionals to retirees. The integration of residential units also addresses housing shortages, a pressing issue across California, while preserving the city’s quality of life through thoughtful design.
Looking to the Future
As Aliso Viejo evolves, mixed-use projects will play a pivotal role in defining its identity. The Commons and Avalon Aliso Viejo are just the beginning—blueprints for a city that blends its master-planned roots with the demands of 21st-century living. By prioritizing sustainability, economic vitality, and community engagement, these initiatives ensure Aliso Viejo remains a desirable destination for decades to come.
For residents, the message is clear: get involved. Whether through attending planning meetings or simply enjoying the new amenities, your participation shapes this future. Aliso Viejo’s story is one of adaptation and ambition—a small city with big ideas, proving that thoughtful development can harmonize progress with preservation. As these projects unfold, they’ll not only reshape the skyline but also redefine what it means to call Aliso Viejo home.
