Downtown Austin Alliance State of Downtown Report 2020

1 STATE OF DOWNTOWN AUSTIN 2020

STATE of DOWN TOWN AUSTIN 2020

2 DOWNTOWN AUSTIN ALLIANCE

3 STATE OF DOWNTOWN AUSTIN 2020

LETTER FROM THE CEO We are pleased to share the 2020 State of Downtown Report,

Although downtown’s growth has created exceptional market

which presents the latest data on downtown's economic

strength, demand has also exposed challenges – especially in

sectors as well as the plans shaping its future.

the areas of mobility and equity.

It is important to note that we compiled this data in January

Among large U.S. cities, Austin has the third-highest number of

and February 2020, just before the COVID-19 pandemic

commuter hours in traffic. The section of I-35 running through

led Austin to cancel SXSW and other gatherings, close

downtown is extremely congested, and central Austin has

schools and issue Stay at Home – Work Safe orders. It is too

little room for new roads or road capacity. We hope the trend

early to predict or measure the effects this will have on our

of increased teleworking continues long after the COVID-19

community’s health and our local economy. Austin was one

outbreak is contained. We have two other prime opportunities

of the most resilient metro areas during the 2008 financial

to reduce our dependency on single-occupancy vehicles:

crisis, but our current situation is unprecedented for us all.

Project Connect’s proposed multimodal, central city transit network and the lowering and capping of I-35 through

We produce this report annually as a tool for decision-making.

downtown. These will both need public investment and support.

This year, it is a baseline for where we were at the beginning of 2020 – and a benchmark for where we hope to return as

An increasing number of our fellow Austin residents are

soon and as safely as possible.

experiencing homelessness. Like in other major cities, downtown has the greatest concentration of people

We entered this decade in a position of incredible strength,

experiencing homelessness. Our city has fewer than 800

with growth in nearly every category of our urban core. The

shelter beds, and on any given night, over 1,100 people are

culture, innovation and tax revenue generated downtown have

without a roof over their heads. Addressing this issue

far reaching benefits across Austin and Central Texas. And they

requires an actionable plan, improved public policy, and

contribute to Austin’s continued drumbeat of awards such as

new initiatives such as ATX Helps.

“Best Place to Live” (U.S. News and World Report) and “No. 1 City for Real Estate Prospects” (Urban Land Institute).

Our downtown community is collaborating on long-term plans that not only address the challenges of growth but also

2019 was another record-setting year for office construction

proactively create thriving neighborhoods. From creating

downtown. Companies such as Facebook and Google

an urban greenbelt to rewriting our city’s land development

anchored new buildings. The state government began

code for the first time in 30 years, these moves will shape

revitalizing the area around the Texas Capitol Complex.

downtown for decades to come.

An emerging Innovation District is bringing together the health care, life sciences and technology industries.

We invite you to learn more and to join us in re-capturing the downtown we will always love.

Downtown is also a popular place to live, with more than 15,000 residents. And downtown hotel capacity doubled between 2010 and 2019 to accommodate the increase in visitors for conventions, SXSW, ACL Fest, Longhorn Football and everyday getaways.

DEWITT PEART President and CEO Downtown Austin Alliance

Dewitt Peart

4

8

MARKET STRENGTH

10

SAYAKA KUNZE

CONTENTS

DOWNTOWN AUSTIN ALLIANCE

10 Aerial view of downtown from the east

DOWNTOWN DEVELOPMENT

The story behind our changing our skyline

12 OFFICE MARKET Why the downtown Austin office market attracts top companies

14 HOTEL MARKET A look at hotel market performance and potential

16 HOUSING MARKET How residential development is shaping and growing downtown’s neighborhoods

18 RETAIL MARKET A look at Austin’s retail districts and the development pipeline

16 View of residential towers at sunset

5

22

RESIDENTS

Learn about downtown's population growth, Austin's affordability crisis and efforts to solve homelessness

24 WORKFORCE An overview of downtown employment trends and demographics

26 TALENT Explore Austin’s Innovation District and talent pool

28 VISITORS View tourism highlights and plans for the Austin Convention Center

30 CONNECTING DOWNTOWN MICHAEL KNOX

A look at downtown mobility options and efforts to shift commute modes

28

38

36

m e a n d e r by frankev, Creek Show 2019

LOOKING AHEAD

ROGER HO

Visitors and locals alike watching the bats take flight from underneath Congress Avenue bridge

JTYPE

20

OPPORTUNITIES & CHALLENGES

STATE OF DOWNTOWN AUSTIN 2020

38

PUBLIC SPACE

From Congress Avenue to the Waterloo Greenway, how downtown’s spaces are shaping the future

40

SHAPING THE FUTURE OF DOWNTOWN

Transformative plans and initiatives impacting the future of downtown

6 DOWNTOWN AUSTIN ALLIANCE

STATE OF DOWNTOWN

As we embark on a new decade, downtown is in a

state of explosive growth and exciting opportunity.

Austin is one of the fastest-growing cities and among the most desirable places to live in the U.S. Downtown Austin is the economic, governmental and cultural center of both Austin and all of Central Texas. This is a critical role. Downtown Austin's growth continues to drive opportunities for innovation, collaboration, recreation, arts and culture that benefit the entire region. At the same time, this growth has amplified affordability and mobility challenges.

Martin Luther King Jr. Blvd.

Many large-scale projects, such as the new Central Library and Dell Seton Medical Center at The University of Texas, have transformed downtown over the past decade to better Lamar Blv d.

serve Austin's growing population. This trend continued in 2019 with significant investments I-35

in new buildings, parks and green spaces; a new vision for the Austin Convention Center; and an emerging Innovation District.

We must thoughtfully plan for all aspects of downtown’s growth to keep the area prosperous and vital through 2030 and beyond.

Lady Bird Lake

VISION & STRATEGIC PRIORITIES

The Downtown Austin Vision is a guide for shaping downtown in a way that supports our community’s values and aspirations. It is used by the Downtown Austin Alliance as well as by other

DOWNTOWN BOUNDARIES Downtown Austin Downtown Austin Public Improvement District

community leaders and citizens.

The Downtown Alliance engaged more than 3,000 residents in developing the Downtown Vision. Together we identified four strategic priorities — Thriving Center, Welcoming Places, Growing Neighborhoods and Leading Mobility — that work together to create and sustain the

Map: Downtown Boundaries Downtown Austin is generally defined as the 1,100-acre area bordered by Martin Luther King Jr. Boulevard, I-35, Lady Bird Lake and Lamar Boulevard.

Downtown Austin Public Improvement District, or PID, is a district specifically formed for the purpose of enhancing, improving or promoting the interests of the municipality. The Downtown Austin Alliance, the PID's managing entity, leads and participates in a broad range of programs and initiatives that create, preserve and enhance the value and vitality of downtown Austin.

Imagery ©2020, CAPCOG, Maxar Technologies, U.S. Geological Survey, USDA Farm Service Agency, Google

downtown you will always love. Monitoring the state of downtown annually ensures our entire community remains focused on these priorities.

Read more about the Downtown Austin Vision at downtownaustin.com/vision.

7 STATE OF DOWNTOWN AUSTIN 2020

DOWNTOWN AUSTIN'S ECONOMIC IMPORTANCE

Downtown Austin is a major economic driver

Downtown makes up a small share of Austin’s land

for the city, contributing more than $732

area but has substantial economic importance.

million in tax revenue in 2019. This revenue

With an average assessed value of $17 million per

paid for education, parks and public services

acre, downtown is 20 times more valuable than

throughout the city. Despite making up only

the citywide average. Additionally, one-third of

0.5% of Austin's land area, downtown accounts

downtown's land is tax-exempt, yet its share of

for 9% of all property tax, 47% of all hotel

Austin's property value has doubled in the past

tax and 11% of all sales tax generated within

10 years, reinforcing its economic importance to

the city limits. Since 2018, the total amount

the region. When considered in greater context,

of property, hotel and sales taxes generated

downtown Austin’s outsized impact extends well

downtown has increased by 35%.

beyond its geographic boundaries.

1

Downtown's share of Austin’s property value has doubled in the past 10 years.

/// Downtown by the Numbers ///

15,513 RESIDENTS

96,396

11,828

EMPLOYEES

RESIDENTIAL UNITS

11,017

11M

HOTEL ROOMS

SQUARE FEET OF MULTI-TENANT OFFICE SPACE2

$323M AARON WADE

SALES

$96M $313M HOTEL

— 1

Source: Travis County Central Appraisal District, 2019; State of Texas Comptroller’s Office, 2018 Qtr3-2019 Qtr2

2

Multi-tenant Office Space only includes sites that are greater than 100K sqft

PROPERTY

8

MARKET STRENGTH

DOWNTOWN AUSTIN ALLIANCE

9 STATE OF DOWNTOWN AUSTIN 2020

DRIVING RECORD GROWTH & DEVELOPMENT

10

DOWNTOWN DEVELOPMENT The story behind our changing our skyline

12

OFFICE MARKET Why the downtown Austin office market attracts top companies

14

HOTEL MARKET A look at hotel market performance and potential

16

HOUSING MARKET How residential development is shaping and growing downtown’s neighborhoods

18

RETAIL MARKET A look at Austin’s retail districts and the development pipeline

Downtown has enjoyed rapid growth, exceptional market strength and great opportunity to shape its future.

Downtown Austin just completed an amazing decade of development. Demand for downtown's amenity-rich environment has continued to outpace new supply. To catch up, development pace and scale increased significantly over the past few years. From 2010 to 2019, 65 developments were completed in downtown Austin, compared with 51 in the preceding decade. In 2019 alone, 10 projects were completed and many more began construction.

This development surge has been especially prominent in the office and residential markets.

The core’s 11 million square feet of multi-tenant office inventory provides the city's densest concentration of employment opportunities, hosting 13% of Austin jobs and nearly 100,000 employees. These workers, and their workplaces, are vitally important to maintain our thriving city center.

Additionally, downtown has attracted and retained the region's top talent by offering an amazing urban experience, full of cafes and nightlife, that makes Austin a place unlike anywhere else. It is walkable and well-connected to the entire region through an expanding urban transit system.

Finally, Austin's top-ranked strong economy is palpable and proven in downtown, with record growth rates and transformative initiatives like the emerging Innovation District, Texas Capitol Complex construction and a reimagined Convention Center.

Photo by CARLOS ALFONSO

10 DOWNTOWN AUSTIN ALLIANCE

Downtown’s current development pipeline is at a record high, with

CARLOS ALFONSO

DOWNTOWN DEVELOPMENT

“

our skyline: The 688-foot Independent became Austin's tallest tower in

20 projects under construction and another 19 projects planned.

Austin Ranked #1 in the Real Estate Market

2019, but its record will quickly be eclipsed by the mixed-use, 848-foot 6X Guadalupe development currently

The past decade of development

under construction.

surpassed 2000-2009 figures in

—URBAN LAND INSTITUTE

every category except retail. In the

Downtown has delivered about

2010s, developers produced 6,067

35 million square feet in new

residential units, 68% of which

development over the past 20 years.

were apartments. We estimate

Most of this development has taken

that this rapid housing increase

place in the Lower Shoal Creek

has brought the downtown

area along Lady Bird Lake, in the

population to more than 15,500.

Seaholm/2nd Street District and in

Furthermore, the historically tight

the Core/Waterfront District, where

labor market has driven demand

there have been large amounts

for an increased development of

of public and private investment,

downtown office space.

generous zoning entitlements

35 million square feet have been developed in the last 20 years.

At the current rate, that amount will be matched in less than 10 years.

and fewer Capitol View Corridor Downtown's growth is changing

limitations or height restrictions.

DOWNTOWN DEVELOPMENT SINCE 1999 (by SF) 830,843

529,639

705,604

991,429

3,293,199

1,541,739

2,568,219

2,536,448

3,136,651

2,501,705

2,798,364

2,258,988

'04

1,503,847

'03

1,590,439

1,429,133

'02

293,796

764,693

'01

418,602

1,462,851

'00

826,195

698,174

'99

584,459

860,170

3.5M

Under Construction

742,476

Complete

'06

'07

'08

'09

'10

'11

'12

'13

'14

'15

'16

'17

'18

'19

'20

'21

'22

3M 2.5M 2M 1.5M 1M .5M 0

'05

Source: Downtown Austin Alliance Emerging Projects Database, January, 2020

11 STATE OF DOWNTOWN AUSTIN 2020

Base Map Data © 2020 Google

EMERGING DEVELOPMENT PROJECTS3 Under Construction Proposed & In Planning Recently Completed

For an up-to-date listing, visit our interactive project map on our website at downtownaustin.com/emergingprojects.

DOWNTOWN DEVELOPMENT PIPELINE PROJECTS

TOTAL SF

OFFICE SF

RESIDENTIAL UNITS

HOTEL UNITS

PARKING SPACES

RETAIL SF

Recently Completed

10

3,136,651

727,315

946

402

3,366

56,102

Under Construction

20

7,559,057

3,845,908

2,528

1,722

11,457

233,492

Planned or Proposed

19

12,830,697

4,315,849

3,097

839

2,048

136,978

TOTAL

49

23,526,405

8,889,072

6,571

2,963

16,871

426,572

PIPELINE STATUS

— 3

Downtown Austin Alliance Emerging Projects Database, as of January 2020

12

“Tau Ceti” by JOSEF KRISTOFOLETTI / Photo by ALEX GEORGE

DOWNTOWN AUSTIN ALLIANCE

OFFICE MARKET Last year was an exciting one for downtown office development.

In 2019, approximately 800,000 square feet of new office space was delivered. Ten projects are currently under construction, totaling a record 4.4 million square feet. Six additional projects are being planned.

For comparison, the past decade delivered nine projects, totaling 2.3 million square feet of new office space.

This new space under construction could conservatively yield 17,600 additional jobs (estimating four employees per 1,000 square feet), although given current tenant layout trends, this figure may be much higher. For instance, Block 185 is expected to house at least 5,000 Google employees in its 793,883 square feet when it delivers in early 2023.4

The downtown Austin office market is considerably smaller in size than our Texas peers, yet it remains the strongest in the state.

The downtown Austin office

DOWNTOWN MARKET COMPARISON Inventory (sq. ft.)

30%

26.2%

42.3M

24%

12% 6% 0

22.3M 11.5M

6.2% AUSTIN

with our competing markets across the U.S. Even within Texas,

Inventory

Vacancy

18%

market is relatively small compared

Total Vacancy (pecentage)

27.2M

29.3M

17.2%

50M 40M 30M 20M

14.3% 8.9%

10M 0

SEATTLE

DALLAS

DENVER

HOUSTON

Source: CBRE Research 2019 Q4 Office Market View Report — 4

Source: Austin Business Journal, 2019

the Dallas and Houston markets have substantially more inventory, yet their markets continue to lag behind Austin in overall market health indicators. Downtown’s average multi-tenant asking rent has consistently been 35%–45% above the city average. In 2019, it was $52.40 per square foot compared with $37.61 citywide.

13 STATE OF DOWNTOWN AUSTIN 2020

DOWNTOWN OFFICE DEVELOPMENT PIPELINE PIPELINE STATUS

PROJECTS (N)

OFFICE SF

2019 DELIVERIES

Recently Completed (2019)

4

727,315

901 E. 6th

Under Construction

10

3,596,908

SXSW Center

Proposed & In Planning

6

3,398,069

Third + Shoal

20

7,722,292

Westview

TOTAL

Source: Downtown Austin Alliance Emerging Projects Database, as of January 2020

DOWNTOWN NET ABSORPTION AND DELIVERY (by SF) 144K

17K

375K

789K

851K

484K

179K

71K

694K

790K

Delivery

195K

1M

670K

Net Absorption

800K 600K 400K

SAYAKA KUNZE

200K 0

2014

2015

2016

2017

2018

2019 Source: CoStar, 2019

DOWNTOWN OFFICE MARKET RENT & VACANCY Office Gross Rent Direct

Total Vacancy (%)

Vacancy

Gross Rent Per SF

35%

$70

30%

$52.40

$60

25%

$50

20%

$40

15%

$30

6.1%

10% 5% 0%

$20 $10

2000

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

$0

Source: CoStar, 2019

14 DOWNTOWN AUSTIN ALLIANCE

HOTEL MARKET Austin has one of the strongest hotel markets in Texas, led by

The number of hotels rooms downtown has increased by 94% in the past 10 years.

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downtown.

DOWNTOWN VS CITY HOTEL REVPAR (Revenue per available room)

With an average daily room rate of

Citywide RevPAR

CBD RevPAR

$231, downtown hotels generated an estimated $179 in revenue per available room in 2019. Compared with other cities such as Dallas, Houston and San Antonio, average daily room rates in downtown continued to climb as a mix of new boutique, business and luxury hotels filled the skyline.

There are over 11,000 hotel rooms downtown, representing 26% of the Austin area's total supply.

$200

$179.16

$160

$103.83

$120 $80 $40 0

'01 '02 '03 '04 '05 '06 '07 '08 '09 '10

'11

'12

'13

'14

Another 2,561 hotel rooms are

'15

'16

'17

'18

'19

Source: Visit Austin, 2019

under construction or planned for downtown. The number of hotels rooms downtown has increased by 94% in the past 10 years.

AUSTIN HOTEL OCCUPANCY RATES (Percentage of occupied rooms) Citywide Occupancy

CBD Occupancy

84% 80%

77%

76%

72%

72% 68% 64% 60% 56%

'01 '02 '03 '04 '05 '06 '07 '08 '09 '10

'11

'12

'13

'14

'15

'16

'17

'18

'19

Source: Visit Austin, 2019

15 STATE OF DOWNTOWN AUSTIN 2020

DOWNTOWN HOTEL DEVELOPMENT PIPELINE PIPELINE STATUS

PROJECTS (N)

HOTEL ROOMS

2019 DELIVERIES

Recently Completed (2019)

2

243

Homewood Suites

Under Construction

3

1,074

The Carpenter

Proposed & In Planning

2

489

TOTAL

7

1,806 Source: Downtown Austin Alliance Emerging Projects Database, as of January 2020

CITY COMPARISON Average Daily Room Rate

Hotel Occupancy (percentage)

Occupancy

80% 64%

77.4%

67.5%

$231.41

$160.07

79.5%

70.9%

65%

79.8%

$225.72

Rate

$250

$212.58

$200

$185.39 $150.30

48%

$150

32%

$100

16%

$50

0

0

AUSTIN

DALLAS

HOUSTON

SAN ANTONIO

NASHVILLE

SAN DIEGO Source: STR, 2019

HOTEL TAX REVENUE

TOTAL HOTEL TAX REVENUE GENERATED (in Millions)

by 57% since 2000.

$203M

$96M

$167M

$78M

revenue in 2019. Downtown’s share has grown

$143M

sales taxes, contributing over $96 million in tax

$58M

$14M

Downtown generates 47% of Austin’s hotel room

Austin $73M

Downtown

$25M

market, generating significant tax revenue.

$53M

A vibrant tourism industry drives a strong hotel

$200 $160

Downtown Austin (78701) was the highestgrossing ZIP code in Texas for mixed-beverage sales in 2019, with $320 million. This accounts for 37% of all mixed beverage sales in Travis county, reflecting the economic benefit of downtown Austin’s abundance of hotels, bars, clubs and entertainment venues.

$120 $80 $40 0

2000

2010

2015

2018

2019

Source: State of Texas, Comptroller, 2019

16 DOWNTOWN AUSTIN ALLIANCE

JTYPE

HOUSING MARKET

AUSTIN APARTMENT RENTAL RATE (per SF) Citywide Rate

CBD Rate

$2.74

$2.80 $2.24

$1.48

$1.68

Downtown continues to attract

$1.12

new residents.

$0.56 0

Residential development is changing the skyline while shaping and growing downtown’s neighborhoods.

In 2019, three residential towers and '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10

'11

'12 '13 '14 '15 '16 '17 '18 '19 Source: CoStar, 2019

one mixed-use hotel/apartment tower were completed downtown.

These towers — The Independent (currently downtown's tallest

AUSTIN APARTMENT OCCUPANCY (Percentage of available apartments) Citywide Occupancy

CBD Occupancy

Gables Park Plaza — added 691 new residential units. New additions were also made within the 2nd Street District and Rainey Street District,

100%

93%

92%

92%

where tenants enjoy direct access to downtown parks and green space such as Republic Square and the Ann and Roy Butler Hike-and-Bike Trail at Lady Bird Lake. Rental prices

83%

for downtown apartments grew 7.5% year over year — the highest increase

74% 65%

tower), 70 Rainey, Austin Proper and

in the city.

'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10

'11

'12 '13 '14 '15 '16 '17 '18 '19 Source: CoStar, 2019

17 STATE OF DOWNTOWN AUSTIN 2020

RESIDENTIAL DEVELOPMENT PIPELINE

With 946 apartment and condo units recently completed, 2,528 units under construction and another 3,097 planned, downtown’s growing housing stock is being quickly absorbed.

DOWNTOWN RESIDENTIAL DEVELOPMENT PIPELINE PIPELINE STATUS

PROJECTS (N)

RESIDENTIAL UNITS

2019 DELIVERIES

Recently Completed (2019)

4

946

70 Rainey

Under Construction

5

2,528

The Independent

Proposed & In Planning

4

3,097

Gables Park Plaza/Hotel Zaza

TOTAL

13

6,571

The Tyndall

Source: Downtown Austin Alliance Emerging Projects Database, as of January 2020

/// By the Numbers /// APARTMENTS

5,316 Apartment Units

$2,561 Average Rent per Month

CONDOS

$2.70

374

Average Rent per Sq. Ft.

Condo Sales in 2019

$696K

$575

Average Sale Price

Average Price per Sq. Ft.

Source: Source: Capitol Market Research, 2019

APARTMENT & CONDO UNITS DEVELOPED SINCE 2000 Apartment Units

Condo Units

1,600 1,400

1,479

704

818

1,200 1,000

725

800 600

660

400 200 0

360

2000 2001

155

584

476

445

82

239

292

533

290

240 99

266

199

159

80

2002 2003 2004 2005 2006 2007 2008 2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

221 2019

Source: Downtown Austin Alliance Emerging Projects Database, as of January 2020

18 DOWNTOWN AUSTIN ALLIANCE

RETAIL MARKET Over the years, the square footage and amount of retail space in downtown Austin have grown significantly.

When people think of Austin, they think of quirky bars on Rainey Street, live music on Red River Street and old-fashioned saloons on East Sixth Street. This uniquely vibrant scene has been buoyed as recently completed developments from Seaholm District to East Sixth Street have connected downtown’s shopping and entertainment options all the way to Lamar Boulevard.

Furthermore, the market has maintained a high occupancy rate of 97.7% and rents ranging from $30 to $40 per square foot.

Congress Avenue Shops

DOWNTOWN RETAIL DEVELOPMENT PIPELINE PIPELINE STATUS

PROJECTS (N)

RETAIL SF

2019 MULTI-USE DELIVERIES

Recently Completed (2019)

8

56,102

70 Rainey

The Carpenter

Under Construction

8

233,492

901 E. 6th

The Independent

Proposed & In Planning

9

136,978

Gables Park Plaza/Hotel Zaza

Third + Shoal

TOTAL

25

426,572

SXSW Center

Westview

Source: Downtown Austin Alliance Emerging Projects Database, as of January 2020

CONGRESS AVENUE PEDESTRIAN COUNTS (Average count/time of day) At the Bridge The Austonian 408 Congress (Newks) 609 Congress (Royal Blue) 800 Congress (Cafe) 1005 Congress (Capitol)

AVERAGE ANNUAL ASKING RENT

$34/SQ. F T.

1,000

OCCUPANCY RATE

97.7%

Source: CBRE 2019 Q4 Retail Market View

750 500

Pedestrian activity along Congress Avenue, our retail core, gives retailers

250

a sense of downtown’s vibrancy. For example, weekdays see a lunchtime

0

0:00

2:00

4:00

6:00

8:00

10:00

12:00

14:00

16:00

18:00 20:00 22:00 Source: EcoCounter, 2019

surge as tourists, residents and office workers alike enjoy downtowns food, drink and entertainment options.

19 STATE OF DOWNTOWN AUSTIN 2020

RETAIL MIX BY DISTICT Food, Drink, Entertainment

Retail Goods

Retail Services

NORTH LAMAR 2ND STREET CONGRESS AVE. DOWNTOWN OVERALL EAST 6TH STREET WEST 6TH STREET RED RIVER RAINEY STREET 0%

25%

50%

75%

100% Source: LiveXYZ, 2019

RETAIL MAP Food, Drink & Entertainment Retail Goods Retail Services

Base Map Data © 2020 Google Source: LiveXYZ, 2019

20

OPPORTUNITIES & CHALLENGES

DOWNTOWN AUSTIN ALLIANCE

21 STATE OF DOWNTOWN AUSTIN 2020

DOWNTOWN IN DEMAND

22

RESIDENTS Learn about downtown's population growth, Austin's affordability crisis and efforts to solve homelessness

24

WORKFORCE An overview of downtown employment trends and demographics

26

TALENT MARKET

Explore Austin’s Innovation District and talent pool

28

VISITORS View tourism highlights and plans for the Austin Convention Center

30

CONNECTING DOWNTOWN A look at downtown mobility options and efforts to shift commute modes

While downtown is in high demand, the area isn't without challenges.

Issues of affordability, safety and accessibility are apparent and threaten its full potential.

Downtown residents of all ages benefit from their proximity to landmarks such as the Texas State Capitol and Lady Bird Lake, as well as to major employers, restaurants and entertainment options.

Furthermore, new residents bring energy, character and vibrancy to downtown's fast-changing landscape. The increased population density has also attracted local shops, restaurants, health and beauty establishments and other neighborhood services. These amenities, along with access to many transit options, make downtown living very appealing.

Austin continued to live up to its "Live Music Capital of the World" reputation in 2019, with famous downtown events such as South by Southwest and the Austin City Limits Music Festival, as well as thousands of smaller nightly performances, drawing locals and tourists alike. Although music put Austin on the map, the city's worldclass dining, outdoor recreation, sports events and cultural attractions have further raised its international profile. The continual growth in tourism and festivals has fueled much of downtown retail activity and sales.

Efforts to maintain our city’s thriving center don't come without challenges. Mobility is critical to downtown Austin’s ability to grow and thrive in the long term. Residents, employees and visitors must be able to safely and easily move into, out of and around the urban core. Also, Issues of affordability and homelessness are magnified in downtown, similar to other cities. Austin's sprawling growth presents challenges, but many of the solutions lie downtown.

Photo by TOMEK BAGINSKI

22 DOWNTOWN AUSTIN ALLIANCE

RESIDENTS Downtown is one of Austin's most popular neighborhoods, growing by an estimated 8% annually.

AARON WADE

There are more than 15,500 residents living in downtown Austin. The population has been growing steadily since 2000, adding over 7,800 residents (103% growth) in the past 10 years.

POPULATION & HOUSING ESTIMATES (Total number) Housing Units 15,000

948

Downtown households are mostly composed of single professionals

Residents

4,222

earning a median income of $110,000

2,331 4,176

5,670 7,635

11,828 15,513

30% of downtown households have a median income of $200,000 or more.

5,000 1990

2000

2010

2019

Source: U.S. Census Bureau, Downtown Austin Alliance, 2019

MEDIAN HOUSEHOLD INCOME (in Thousands of Dollars) Downtown

Austin

Texas

neighborhoods have a high

$110K

100

concentration of college-educated

$67K

50

$60K 1990

A diverse, sizable residential population is a critical component of a thriving, healthy downtown.

Downtown and its adjacent

150

0

downtown have surpassed Austinarea incomes since 2010. Additionally,

10,000

0

per year. Median household incomes

2000

generation (ages 23-38) accounts for the largest share of downtown’s

ACS 2014-2018

2010

millennial residents. While the millennial

Source: US Census 1990, 2000, 2010, ACS 2014-2018

demographic profile at 56%, baby boomers (ages 55-75) comprise 21% of the downtown population — a 78% increase since 2010.

GENERATIONS (per capita) Downtown

As Austin grows more racially diverse, downtown is lagging in its share of

Austin 3% 3%

Matures

nonwhite residents. According to the 2018 American Community Survey

21%

Baby Boomers

estimate, the downtown population

15% 18% 19%

Gen X

is 27% nonwhite, whereas Austin's

Millennials Gen Z

42%

2% 0%

56%

20%

30%

40%

of residents continue moving to Austin, opportunities remain for downtown to

21% 10%

population is 52% non-white. As droves

50%

60%

Source: US Census ACS 2014-2018

attract and serve diverse populations.

23 STATE OF DOWNTOWN AUSTIN 2020

WHO LIVES DOWNTOWN? POPULATION CHARACTERISTICS

DOWNTOWN

AUSTIN

15,513

935,755

Population Under Age 18 (Children)

2%

21%

Population Age 65 and Over

11%

9%

Median Age

35

33

Median Home Value

$457,428

$312,300

Median Household Income

$110,303

$67,462

Male/Female Ratio

61% / 39%

51% / 49%

College Educated

74%

50%

1.6

2.5

27%

52%

Total Population

Average Household Size Non-White Population

Source: US Census ACS 5-year 2018 Estimates

HOMELESSNESS

Over the past 15 years, Austin has experienced tremendous population growth coupled with significant increases in housing costs.

According to local data, approximately 3,000 Austin households need immediate housing and services. And according to the Downtown Alliance Homeless Process Triage, Austin's homeless service system is operating at one-third of the needed capacity.

Addressing homelessness is a top strategic priority for the Downtown Austin Alliance and the City of Austin. Private sector initiatives such as Community First Village and ATX Helps will add to the much needed capacity in the near future.

To read more about Downtown Austin Alliance’s efforts to broadly address the needs of people experiencing homelessness, visit:

5

In 2019, there were an estimated 2,255 people experiencing homelessness in the city. Of greater

downtownaustin.com/what-we-do/advocacysupport/homelessness-initiatives.

Over the past five years, overall homelessness increased by 23% and unsheltered increased by 63%.

concern are the steady increases of overall and unsheltered homeless since 2015 — Austin's 10-year low point. Over the past five years, overall homelessness increased 23% and unsheltered increased 63%.

AUSTIN'S HOMELESS POPULATION LOCATED DOWNTOWN

35%

AUSTIN'S TOTAL UNSHELTERED POPULATION WITHIN 1/4 MILE OF 7TH & NECHES STREETS

— 5

Source: Downtown Austin Alliance Homeless System Process Triage, 2019. Austin-Travis County Annual Point-in-Time Count.

25%

24 DOWNTOWN AUSTIN ALLIANCE

WORKFORCE Downtown has the city’s highest concentration of jobs per square mile.

SAYAKA KUNZE

Downtown Austin has remained very attractive to potential tenants willing to pay a premium to office in an environment more amenity-rich than other local submarkets. Downtown workers enjoy abundant lunch options, happy hour spots, live music venues, parks and cultural events. The area's rent premium has been consistently increasing because of downtown's historically small market and tight vacancy rates. It also

Downtown Austin’s total employment is smaller than that of our peers' downtowns but has grown at a much faster rate.

reflects the region's extremely tight labor market, in which unemployment is at 2.5%.

79,007

77,812

75,762

75,538

77,727

81,424

85,875

88,458

91,111

93,448

96,396

77,151

74,226

71,629

70,123

71,009

74,146

100K

73,578

DOWNTOWN EMPLOYMENT

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

80K 60K 40K 20K 0

80 2002

2003

2004

2005

2006

2007

2008

Source: JobsEQ 2019 Q3

% CHANGE IN TOTAL DOWNTOWN EMPLOYMENT 2012-2017 22.5%

19.0%

18.2%

9.6%

6.2%

6.0%

CHARLOTTE

AUSTIN

DALLAS

HOUSTON

DENVER

SEATTLE

24% 18% 12% 6% 0%

Source: JobsEQ 2019 Q3

25 STATE OF DOWNTOWN AUSTIN 2020

WHO WORKS DOWNTOWN? JOBS BY GENDER

DOWNTOWN

AUSTIN

Male

50.1%

51.4%

Female

49.9%

48.6%

Age 29 or younger

22.1%

23.9%

Age 30 to 54

59.7%

58.1%

Age 55 or older

18.2%

18.0%

$1,250 per month or less

12.9%

17.7%

$1,251 to $3,333 per month

22.2%

28.8%

More than $3,333 per month

64.9%

53.5%

White Alone

82.3%

80.5%

Black or African American alone

9.5%

10.2%

American Indian or Alaska Native alone

0.7%

0.8%

Asian alone

5.6%

6.5%

Native Hawaiian or Other Pacific Islander alone

0.1%

0.1%

Two or more race groups

1.8%

1.9%

Not Hispanic or Latino

77.0%

72.6%

Hispanic or Latino

23.0%

27.4%

Less than high school

8.9%

11.0%

High school or equivalent, no college

16.9%

17.7%

Some college or associate degree

25.5%

24.2%

Bachelor's degree or advanced degree

26.6%

23.2%

Educational attainment not available (workers 29 or younger)

22.1%

23.9%

JOBS BY WORKER AGE

JOBS BY EARNINGS

JOBS BY WORKER RACE

JOBS BY WORKER ETHNICITY

JOBS BY WORKER EDUCATIONAL ATTAINMENT

Source: U.S. Census Bureau, OnTheMap Application and LEHD Origin-Destination Employment Statistics (Beginning of Quarter Employment, 2nd Quarter of 2002-2017).

Health & Social Assistance Other Services

8.3%

5.5% 29.2%

Food & Accommodation Services

Professional & Technology Services

14.2%

19.9%

Public Administration

EMPLOYMENT

BY INDUSTRY

22.9% Business Services Source: JobsEQ® 2019Q3

26 DOWNTOWN AUSTIN ALLIANCE

TALENT Nationally recognized companies such as Google, Facebook and Indeed have continued to locate downtown, choosing to pay a premium to gain

AUSTIN TALENT /// By the Numbers ///

unfettered access to one of the nation’s best talent pools — and to offer employees the unique perk of working downtown.

CBRE TECH TALENT RANKING (2019)

Austin-Round Rock leads all Texas metro regions in educational attainment growth, adding 157,879 adults

#5

with a minimum of a bachelor’s degree from 2010 to 2019. This has made our region highly competitive within the global employment market.

TOTAL TECH TALENT (2018)

72,360

Locating in downtown Austin gives employers prime access to one of the nation's best talent pools.

GROWTH IN TECH TALENT (2013-2018)

AUSTIN-ROUND ROCK MSA'S GROWING LABOR FORCE (in Millions)

TECH TALENT LABOR CONCENTRATION (2018)

Civilian Labor Force

1.23M

1.2M

1.16M

1.12M

1.07M

1.05M

1.02M

Year Over Year Increase

988K

961K

931K

886K

7%

Annual Growth

Civilian Labor Force

1.4

12.6%

7%

1.2

6%

1.0

5%

0.8

3.1% 4% 3%

0.6 0.4

2%

0.2

1%

0

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

0%

Source: U.S. Bureau of Labor Statistics, 2019

TOTAL INCREASE IN CIVILIAN LABOR FORCE (2018-2019)

37,706

UNEMPLOYMENT RATE (2019)

2.5%

EDUCATIONAL ATTAINMENT % INCREASE (2012-2019)

57.20%

POPULATION OF 20-SOMETHINGS (2017)

19%

Source: Bureau of Labor Statistics, CBRE Tech Talent Rankings 2019

27 STATE OF DOWNTOWN AUSTIN 2020

LOOKING AHEAD: AUSTIN'S INNOVATION DISTRICT

2,800

new permanent jobs Photo Courtesy of Dell Medical School

$800M economic output

Health innovation is taking shape in Austin.

The Innovation District, a one-of-a-kind downtown Austin neighborhood, has gone from generating buzz to breaking ground. Redevelopment of

$12M new tax base

+27%

increase in jobs accessible to those without a college degree

Central Health’s downtown property — the former Brackenridge Campus — has begun. Block 164, the flagship building of Austin’s Innovation District, is now under construction. A broad, community-wide network is shaping the Innovation District into a hub of health innovation and positioning it to be the center of a diversified, inclusive regional economy.6 Downtown Alliance, in partnership with UT Austin's Dell Medical School, Central Health, Ascension Seton and Opportunity Austin, is leading Capital City Innovation, the nonprofit coordinating the vision, strategic direction and emergence of Austin's Innovation District. It supports and encourages innovation among the life sciences, health care and technology industries throughout Central Texas by combining creative placemaking and programs that promote partnerships.

53%

increased land value Concordia University Texas

4%

rent growth premium

Central Texas Angel Network

The Domain

TiE Austin

BioAustin Tech Ranch Austin Technology Incubator Health Tech Austin Capital Factory Techstars

ACC Bioscience Incubator

Manor New Tech High School

The University of Texas at Austin Huston-Tillotson University Central Health St. Edward’s University

— 6

Source: Austin’s Innovation District Market Analysis, 2020

= INNOVATION DISTRICT

Texas State University

28 DOWNTOWN AUSTIN ALLIANCE

Downtown Tourism (2019)

A timeline of daily activities & yearly highlights

VISITORS Downtown attractions anchor Austin’s strong tourism industry.

The city center offers unique, once-in-a-lifetime experiences that push culture and entertainment to new heights.

Downtown Austin is a hub of tourism and culture for the city as well as home to Austin's largest concentration of hotels.

Visitors and residents can walk to downtown's dozens of live music venues, hundreds of bars and restaurants, 113 public

JANUARY Women's March

MORNING

MARCH

Many explore Austin's history with a downtown guided walking tour, learning about the city's rich history and culture.

South by Southwest

Austin Reggae Festival

art installations, 39 museums and cultural venues, historic structures, and sporting events at The University of Texas at Austin. Entertainment districts such as Sixth Street, 2nd Street, Red River, Congress Avenue, Rainey Street and the Warehouse District offer distinct experiences around the clock — from shopping and galleries to eclectic nightlife and events.7

2019 TOURISM HIGHLIGHTS

NOON Filled with many lunch options, downtown has over 150 restaurants to choose from.

• The New York Times named Austin one of its "52 Places to Go in 2020."

• Austin-Bergstrom International Airport announced new

nonstop flights between Austin and Paris and Amsterdam, joining the existing nonstops to London and Frankfurt.

• The 2019 Austin City Limits Music Festival brought in $265

million, featuring stars including Billie Eilish, Lizzo, Childish 8

Gambino and The Cure.

Austin Food & Wine Festival

EVENING Yoga and other fitness events commence.

Happy hours, street cafe specials, and live music begin to line the streets as the work day comes to a close.

Pecan Street

Festival

JULY Red River Cultural District's Hot Summer Nights Austin's Birthday Bash

AUGUST Pride Week

• SXSW 2019 brought in $356 million,9 attracting tech, film and

OCTOBER

• Other downtown-area events such as the Austin Food & Wine

Austin City Limits Festival

music industry innovators from around the world.

Festival, Trail of Lights, Downtown Sing-Along and Holiday

Stroll, Creek Show, Pride Week, Moontower Comedy Fest and the Austin Women's March united residents and tourists alike.

• The University of Texas at Austin's new Bevo Blvd., which

turns San Jacinto Blvd. into an action-filled pregame street party before Longhorn football games, drew visitors from across the U.S.

• Hotel ZaZa and the Austin Proper Hotel opened downtown.

— 7

Source: City of Austin Cultural Asset Mapping Project, 2018

8

Source: Angelou Economics, 2019

9

Source: Greyhill Advisors, 2019

LATE NIGHT Top musical talent and live acts at places such as The Parish and Mohawk celebrate Austin's music scene.

NOVEMBER Creek Show

DECEMBER Downtown Holiday Stroll Trail of Lights

29

Creek Show 2019 / ROGER HO

Austin City Limits Music Festival / MAXWELL COLLINS

STATE OF DOWNTOWN AUSTIN 2020

AUSTIN AREA VISITOR PROFILE

ORIGIN

80%

INTRASTATE

20%

$105,779

OUT OF STATE

AVERAGE HOUSEHOLD INCOME

PURPOSE OF STAY

74% LEISURE

26%

BUSINESS

DEMOGRAPHICS

45

AVERAGE AGE

63% MARRIED

35%

HAVE CHILDREN

75%

EMPLOYED

12% RETIRED

Source: Source: DK Shifflet, for the Office of Governor, Economic Development & Tourism Division (2017 data)

LOOKING AHEAD: AUSTIN CONVENTION CENTER The Austin Convention Center hosted 54 conventions and trade shows downtown in 2019. These drew 323,385 visitors — a 5.2% decrease from 2018. In 2019, the Austin City Council approved a $1.2 billion plan to expand the Convention Center. Added capacity will drive the continued growth of downtown’s strong tourism economy as well as business opportunities throughout Central Texas.

Photo Courtesy of the Austin Convention Center

30 DOWNTOWN AUSTIN ALLIANCE

/// By the Numbers /// Austin is one of the most sprawling

cities in Texas. Rapid growth in the city’s periphery has accelerated

transportation constraints, producing

urban areas. This congestion cost Austin $1.2 billion in lost productivity and wasted fuel in 2017.11 As Austin continues to grow outward, this

some of the state’s highest averages

waste will only increase.

wasted in traffic.

A net average of 105 people move to

of miles driven daily and minutes

Austin each day,12 many from cities Downtown is Austin’s largest

with several transportation options.

employment center, with 96,396

This increased demand presents

employees in 2019. Only 2% of these

several mobility-related challenges

employees live downtown, and 20%

in Austin, limiting commuters’

live outside Austin's city limits.

access to and within downtown.

10

JTYPE

CONNECTING DOWNTOWN

However, a new mobility landscape

continued success hinges on moving

for downtown is starting to take

an ever-increasing number of Austin-

shape, with major initiatives like

area residents into and around

the upcoming rebuilt Downtown

downtown. Austin has the third-

MetroRail Station, the Project

highest number of commuter hours

Connect plan and I-35’s planned

in traffic among America’s large

reconstruction.

80,000+ ANNUAL MICROMOBILITY TRIPS

1 Million+

ANNUAL TRANSIT RIDERSHIP

3.9 Million

ALEX PUGLIESE

Downtown’s ability to grow and its

PARKING SPACES

— 10

Source: JobsEq, ESRI, Data as of 2019Q3

11

Source: Texas A&M Transportation Institute

12

Source: City of Austin Demographer, 2019

31 STATE OF DOWNTOWN AUSTIN 2020

MOBILITY & TRANSPORTATION B-Cycle Station

UT Shuttle

Multi-Use Paths

High Frequency Bus

Local Bus

Commuter Rail

Map Data © 2020 Google

32 DOWNTOWN AUSTIN ALLIANCE

SHIFTING COMMUTE MODE

Central Austin has reached a point where few additional roads and little road capacity can be built to accommodate the increasing numbers of single-occupancy vehicles and growth projections. Positive movement has been noted in multiple travel modes in downtown.

Telework: The most notable shift in Austin's commuting trends is the increase in telework.

In 2017, 8.3% of the area's full-time employees telecommuted, up from 4.3% in 2005.13 Austin ranked second for telecommuting among the country's 100 largest metro areas. And 15% of people with jobs in the downtown area telecommute.

Although more commuters are opting to use other forms of transportation to conduct

This is a positive trend given our city's population

business, drive-alone commuting remains

growth and over-reliance on single-occupancy

the dominant mode of choice.

vehicles for commuting. However, in recent years job growth has outpaced the increase in telework.

Other transportation modes must represent a

NOTABLE MODE SHIFTS

larger share of Austin’s commuting profile. As

While more commuters are opting to use other forms of transportation to conduct business, drive alone commuting remains the dominant mode of choice.

downtown employers begin to prioritize employee commute programs, flexible schedules and remote

Micromobility (Scooter and bike shares):

working options are key business strategies.

Austin is one of three cities leading in scooter ridership nationwide. In 2018, people

Transit: Annual Ridership in downtown has

took more than 84 million trips on shared

increased. Capital Metro's Downtown Station,

micromobility in the U.S., more than double the number of trips taken in 2017, according to the National Association of City Transportation Officials report. Eight micromobility companies were operating in Austin at the end of 2019, with more than 18,600 units permitted for use downtown. Forty percent of all micromobility trips in Austin either begin or end downtown.

where 250,000 commutes are made in and out of downtown each year on the MetroRail Red Line, is expanding to increase the line's capacity.

The station was under construction for most of 2019. CapMetro opened a temporary station just east of downtown, which will be in use until the Downtown Station reopens in 2021 as a central hub for multimodal options and connectivity.

AUSTIN TRANSIT RIDERSHIP 2018

2019

Downtown Station experienced a year-over-year decline due to the site being under construction in 2019.

System-wide

Top Five Downtown Stops

Austin

28,458,345

635,267

Guadalupe/4th

650,830 289,586

Republic Square Station

305,119

29,101,101

252,168

Downtown

Lavaca/4th 3,943,230

0

10,000,000

251,747

Downtown Station

135,048 177,103

Austin History Center

3,951,576 20,000,000

30,000,000

359,062 0

200,000

400,000

600,000

800,000

Source: Capital Metro, 2019

— 13

259,110

Source: US Census ACS estimates 2013-2017

33 STATE OF DOWNTOWN AUSTIN 2020

CITY TO CITY COMPARISON OF EMPLOYEE DRIVE-ALONE RATES City-wide Employees

79%

NASHVILLE

77%

CHARLOTTE

74%

AUSTIN

70%

DENVER

61%

MINNEAPOLIS PORTLAND

58%

SEATTLE

48%

SAN FRANCISCO

33% 0%

25%

50%

75%

100%

Source: US Census ACS 2014-2018

MOVABILITY COMMUTE STUDY

Movability, Austin’s only Transportation Management Association, in partnership with Texas State University, launched a pilot project to measure downtown employees’ commuting habits. In late 2019, the project’s self-selecting survey asked more than 600 employees to track their commute modes for 30 days in the 60-day study. It found that employees traveled via single-occupancy vehicle

SAYAKA KUNZE

for 60% of their trips.

34

SAYAKA KUNZE

LOOKING AHEAD

DOWNTOWN AUSTIN ALLIANCE

MOBILITY MEETS DEMAND

Economic development activity downtown creates a major

W 45th

Street Airport

impact on Central Texas. Although thoughtful planning

E 45th Stre

et

Lamar

Blvd

significant financial investment, strong leadership and

Blvd

and large contributions in mobility have been made,

unwavering community support are crucial for Austin to

41st Stre

et

continue to thrive.

I-35

nation beyond. Navigating I-35 through downtown Austin,

Man

however, is a less inspiring and more frustrating experience. discuss conceptual solutions for I-35 through downtown.

Street W 24th

Mar

I-35

pressway

Enfield Road

once-in-a-lifetime opportunity to connect Austin’s central business district and the UT campus with East Austin over a highway that has divided our city since the 1950s.

ave z St

6th Street

ree t

E Cesar Chavez Street

I-35 IMPROVEMENT PROGRAM Project Scope

Major Points of Interest Separated by I-35

Nash Hernandez Congress Ave

an estimated construction cost of $5 billion. This presents a

r Ch

I-35

of the city. The project will begin construction in 2022 with

esa

Street

approximately three miles of highway through the center

W 6th Street WC

11th Street

S First

This massive undertaking will include the lowering of

15th Street

Lamar Blvd

environmental study of approximately 10 miles of Interstate Highway 35 through the heart of Austin, Texas.

1

11th

MoPac Ex

conversations, TxDOT is conducting a schematic design and

K

St

integrated into the fabric of downtown. As a result of those

her

co n

serve multi-modal traffic, and the frontage roads are not

Lut

Windsor Road

years, physically and socially separating downtown from the east side. Further, the east to west crossings do not

tin

Chi

downtown have negatively impacted our community for

or R

eeton Dean K

In 2014 TxDOT convened a Downtown Working Group to The group recognized that I-35’s elevated structures through

Street

tte St

et

E 38th

Lafaye

pressway

I-35 links downtown Austin to the entire state and our great

W 29th Stre

Guadal

MoPac Ex

INTERSTATE 35

Street

upe Str eet

E 38th

St

35 STATE OF DOWNTOWN AUSTIN 2020

PROJECT CONNECT A legacy of discrimination in housing and transportation policy has long segregated the city’s neighborhoods. Long-term investments in significant public transit infrastructure will begin to overcome these challenges by connecting our prosperous downtown to the metro region. Project Connect will enable equitable mobility by creating a system of high-capacity transit options that will connect people to downtown’s amazing places and abundant opportunities. Approval of the system plan is likely to go to voters in fall 2020 with construction expected to begin shortly thereafter.

The proposed system includes two potential light-rail lines that run through downtown, connecting people from North and South Austin, as well as the airport. Daily ridership on two new light-rail lines, the Orange and Blue, is expected to reach over 68,000 by 2040. The light-rail lines will connect below Republic Square in the Downtown Transit Tunnel to ensure the 53rd Str eet

reliability of the entire transit system during peak hours.

(right) Downtown is the fulcrum of this 21st-century high-capacity transit system, Airp or t

connecting the entire region to each

Blvd

other through downtown.

d Roa

Kin

g Jr

12t

hS

d Blv

tree

SYSTEM COMPONENTS

t

Pedernales Road

E 6th Street

Downtown Transit Tunnel A downtown tunnel will provide speed and reliability.

Commuter Rail

Light Rail

BRT

Rapid Bus

The new Green Line will connect downtown to Colony Park and potentially beyond.

Enhanced services on the Red Line will increase frequency and capacity.

The Blue Line will connect downtown, the University of Texas and the airport.

The Orange Line will connect South Austin and North Austin through downtown.

Larger buses with faster onboarding in dedicated lanes through downtown.

More zero-emission vehicles in the fleet and improved bus amenities.

36

LOOKING AHEAD

DOWNTOWN AUSTIN ALLIANCE

37 STATE OF DOWNTOWN AUSTIN 2020

TRANSFORMING SPACES

38

PUBLIC SPACE From Congress Avenue & the Waterloo Greenway to Writing on the Walls—how downtown’s spaces are shaping the future

40

SHAPING THE FUTURE OF DOWNTOWN Transformative plans and initiatives impacting the future of downtown

2020 is a critical time in downtown's history, when more than half of the city's center is slated for major transformation. A lot has changed in the past two decades, and much more is planned for the future.

Government, business and community leaders are working together to create and implement visionary plans that will shape downtown’s future.

These plans will help us collectively navigate the challenges brought on by Austin’s growth. They will enable us to capitalize on opportunities for innovation, collaboration, recreation, arts and culture — opportunities that can benefit the city and the entire region. And they will create thriving districts and places where people want to be.

Although much of downtown is developed, there is still a lot of potential — especially in the eastern half.

Expected changes to the Land Development Code, along with pending planning efforts for various downtown districts, bring many opportunities to usher downtown into a new frontier.

Public infrastructure investment guides real estate activity and economic development and reinforces the need for close coordination between policy and physical planning.

The next 20 years may see even more growth as downtown continues to flourish.

Rendering of Moody Amphitheater at Waterloo Park

by THOMAS PHIFER AND PARTNERS

38

PUBLIC SPACE /// By the Numbers /// Roughly half of downtown’s land is dedicated to the public realm, and transforming underutilized spaces into engaging, welcoming places is one of downtown’s biggest opportunities.

Downtown's development boom has spurred increased investment in our public spaces, such as parks, squares and plazas. Public spaces make downtown livable and enjoyable. They provide both lively gathering spots and respite from city life. And they are the perfect venue for showcasing Austin's unique history, culture, creativity and natural treasures.

REPUBLIC SQUARE Since reopening in fall 2017, Republic Square has become an essential outdoor respite for residents and employees in downtown.

From the weekly SFC Farmers’ Market to Tuesday night yoga classes, we have seen record numbers of people enjoying community within the open space. In 2020, Salt & Time Café will open inside Republic Square, marking the first time in the park’s history visitors can purchase food, coffee, beer and wine for consumption on-site.

Salt & Time Café will be open daily featuring farm-to-table take out options including charcuterie plates, fresh salads and artisan sandwiches with fresh-cut meats from their East Side butcher shop.

The opening of Salt & Time Café will prove instrumental the square's programming. As the area around Republic Square continues to flourish, the square will become an even more critical piece of the downtown landscape and community.

(top right) Writing on the Walls was a series of public art installations and events in March 2020. As part of the event, artists Sandra Chevrier and Shepard Fairey collaborated on a new mural on the side of The LINE entitled, “The Beauty of Liberty and Equality.” (bottom right) Children pin up birthday cards they made for the city at Austin’s Birthday Bash at Republic Square in August 2019.

ACRES

283

SAYAKA KUNZE

DOWNTOWN AUSTIN ALLIANCE

39 STATE OF DOWNTOWN AUSTIN 2020

LOOKING AHEAD: AUSTIN'S PUBLIC SPACES Aerial View of Waterloo Park under construction.

Photo Courtesy of Waterloo Greenway

CONGRESS AVENUE Congress Avenue, also known as the “Main Street of Texas,” is one of Austin's most iconic and active streets. From the Texas State Capitol to Lady Bird Lake, Congress Avenue serves as the central spine of downtown's cultural, economic and civic activity. It is home to both global technology firms and the world’s largest bat colonies. It connects downtown to a regional system of creeks and green space via the Ann and Roy Butler Hike-and-Bike Trail. And it serves as a major gateway to both South and Central Austin.

Congress Avenue is undergoing a revitalization to fulfill the community's vision for the area. In partnership with the Downtown Alliance and community stakeholders, the City contracted with an Urban Design consultant team to help refine and realize the vision for the Congress Avenue from the Capitol to Riverside Drive. The Congress Avenue Urban Design Initiative is expected to be adopted by Council this year and will ensure the future of the street is vibrant, healthy, accessible and connected. Recent lighting and streetscape improvements, along with new banners, planters and public art, have increased the avenue's beauty and functionality.

SAFETY

Austin has the perception of being a very safe city, and by almost every measure it is. Austin has the fourth-lowest violent crime rate and ninth-lowest property crime rate of the most populous U.S. cities. Austin's violent crime rate has remained stagnant since 2014, whereas Austin's residential population has grown by an average of 3% annually. Austin's property crime rate has been on a downward slope since 2014, with a slight uptick in 2018.

Conversely, downtown’s violent crime has increased over the past six years. Violent crime reached an all-time high in 2019.

Making downtown's streets as safe and clean as possible is a top priority for the Downtown Austin Alliance so residents, employees and visitors alike can enjoy all the great activities and public spaces downtown Austin has to offer.

To learn more about the Downtown Austin Alliance’s clean and safe program, visit: downtownaustin.com/what-we-do/

WATERLOO GREENWAY

our-services.

The vision for the 1.5-mile Waterloo Greenway is to connect downtown’s eastern edge via a chain of parks and trails along Waller Creek, bringing the entire Austin community together.

The Waterloo Greenway Conservancy is implementing this vision in phases, with Waterloo Park currently under construction and anticipated to open in fall 2020. Palm Park will be revitalized as a major entrance point to the greenway, and this destination will become even more engaging for families and children from all over Austin.

As Austin’s prominence grows, safety in downtown has been challenged.

40 DOWNTOWN AUSTIN ALLIANCE

SHAPING THE FUTURE OF DOWNTOWN THE DOWNTOWN AUSTIN VISION The Downtown Austin Vision is a compass that bolsters the efforts of many public and private entities working together to tackle complex projects. It instills a broad sense of ownership, and urgency, around shaping the next era of downtown. The Vision is especially important right now, as change occurs rapidly and important citywide policy decisions are being made.

LAND DEVELOPMENT CODE The City of Austin is in the process of updating its 30-year-old land development code so that it reflects Imagine Austin, the city's comprehensive plan, and provides housing capacity for our fast-growing population. The code determines land use including what, where and how much development can (and cannot) be built. Its regulations will impact all aspects of future development including housing affordability and supply, capital improvements and infrastructure, drainage and water quality and parks and open space. The Code determines what can be built, where it can be built and how much can (or cannot) be built. This set of regulations impacts everything from transportation and signage to public space, first-floor uses, walkability and watershed protection.

ASMP & ACT PLAN The Austin Strategic Mobility Plan (ASMP) is a city-wide multimodal transportation plan. The plan reflects a two-year public engagement process and transportation planning analysis. ASMP’s overarching goal is to achieve a 50/50 mode share split (50% of people commuting via single-occupancy vehicle, 50% by other modes) by 2039 citywide. Austin has begun developing the Austin Core Transportation Plan (ACT) as an update to the 2002 Downtown Austin Mobility Plan and the Downtown Austin Plan’s 2008 Transportation Framework Plan.

The ACT Plan will provide an integrative multimodal strategy that will align projects and policies in the downtown core.

Imagery ©2020, CAPCOG, Maxar Technologies, U.S. Geological Survey, USDA Farm Service Agency, Google

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PLANNING FOR DOWNTOWN

UT CAMPUS MASTER PLAN Guides efforts to revitalize the core campus, enhance the central campus, forge strategic partnerships, facilitate safer mobility, transform the Waller Creek/San Jacinto Corridor, improve learning and research environments and weave together academic and residential life.

AUSTIN INNOVATION DISTRICT Envisions an inclusive community where Austinites collaborate to create new models of health and economic growth for all. Anchored by The University of Texas at Austin’s new Dell Medical School, Dell Seton Medical Center and Central Health Downtown, this downtown district is at the center of a regional ecosystem that will create, refine and validate ideas for improving health locally and even nationally.

TEXAS CAPITOL COMPLEX Reimagines the Texas Mall as a destination that celebrates and centralizes all state agencies. This tree-lined promenade will be located on Congress Avenue between 16th Street and Martin Luther King Jr. Boulevard, and it will serve as the northern gateway to the Capitol Complex with public green space for tourism, events, and festivals.

A NEW FUTURE FOR I-35 Presents new ideas for enhancing and connecting the surface areas of I-35, in conjunction with TxDOT's planned reconstruction of the highway. This year, the Downtown Austin Alliance led an Urban Land Institute panel discussion to scope the capping of I-35’s lanes through downtown. This once-in-a-lifetime opportunity will enhance downtown’s vitality by reconnecting the city’s east and west sides.

WALLER CREEK/PALM DISTRICT PLAN Includes the Waterloo Greenway, Convention Center, Red River Cultural District, 5th Street Mexican American Heritage Corridor, Palm School and Innovation District.

SOUTH CENTRAL WATERFRONT INITIATIVE Guides the next emerging neighborhood of downtown that will develop over the next 20 years.

The goal is to ensure that as the area inevitably changes, every increment of change will contribute to making a great place.

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ACKNOWLEDGEMENTS

STATE OF DOWNTOWN AUSTIN 2020

REPORT TEAM Jenell Moffett, Director of Research & Analysis, Downtown Alliance

Jennifer Cote, Communication Coordinator, Downtown Alliance

Gabriel Schumacher, Research Analyst, Downtown Alliance

Erica Hess, Editor, Plume

Vanessa Olson, Strategic Communication Manager, Downtown Alliance Dana Hansen, Communication Manager, Downtown Alliance

Meredith Reshoft, Designer/Creative Director, The Killswitch Collective Capital Printing, Printer

RESEARCH TASK FORCE Charles Heimsath President, Capital Market Research

Sam Tenenbaum Central Texas Market Economist, CoStar Group

Melissa Barry VP, Planning, Downtown Alliance

Mike Kennedy Principal, MK Interests

Christine Cramer Director of Market Research, Visit Austin

Bill Brice VP, Investor Relations, Downtown Alliance

De Peart President and CEO, Downtown Alliance

Casey Burack General Counsel & VP, Government Affairs, Downtown Alliance

Beverly Kerr VP Research, Austin Chamber of Commerce Cole Kitten Division Manager, Austin Transportation Department Ryan Robinson City Demographer, City of Austin Margaret Shaw Economic Redevelopment Program Manager, City of Austin Economic Development Department

Julie Fitch Chief Operating Officer, Downtown Alliance Pam Power VP, Marketing and Communication, Downtown Alliance

Michele Van Hyfte VP, Urban Design, Downtown Alliance Emily Risinger Planning and Urban Design Manager, Downtown Alliance

SPECIAL THANKS AND CREDITS Angelou Economics Austin American-Statesman Austin-Bergstrom International Airport

Cover Photo: © TOD GRUBBS BEE CREEK PHOTOGRAPHY, All Rights Reserved

Downtown Austin Plan, 2011 Downtown Austin Vision, 2018

Austin Business Journal

Greyhill Advisors

Austin Chamber of Commerce

Homeless System Process Triage, 2019

Austin Transportation Department Photo by SAYAKA KUNZE

Downtown Austin Parking Strategy, 2016

JobsEQ

Capital Metro

Live XYZ

CBRE

Movability

City of Austin, Congress Avenue Urban Design Initiative

National Association of City Transportation Officials Report, 2018

CoStar

Nelson\Nygaard State of Texas, Comptroller State of Texas, Office of the Governor, Economic Development & Tourism Texas A&M Transportation Institute Travis County Central Appraisal District U.S. Census Visit Austin

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