Downtown Austin State of Downtown 2022

STATE OF DOWNTOWN AUSTIN 2022

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STATE of DOWN T OW N AUSTIN 2022

TABLE OF CONTENTS

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DOWNTOWN AUSTIN ALLIANCE

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ART, CULTURE AND LIVE MUSIC Downtown’s unique vibe is felt both day and night.

A PRIME LOCATION

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OFFICE MARKET & EMPLOYMENT Leasing activity returns to prepandemic levels.

18 RETURN TO OFFICE More employees return to downtown offices.

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DOWNTOWN ECONOMIC INDICATORS

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Downtown is the center of Austin’s economic vitality and quality of life.

20 HOUSING MARKET & RESIDENTS Demand for downtown living booms.

24 RETAIL & SMALL BUSINESSES Capitalizing on the rebound of consumer demand.

26

NIGHTLIFE ECONOMY Economic impact of downtown’s entertainment districts.

28

HOTELS & TOURISM

34 DEVELOPMENT PIPELINE Rapid development continues shaping downtown’s districts.

36 DEVELOPMENT OVERVIEW Development is picking up pace at new scale and new heights.

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BUILDING FOR THE FUTURE

October and March show promising signs for downtown recovery.

38 INVESTMENTS SHAPING DOWNTOWN’S FUTURE

New infrastructure ushers in a new era.

BEE CREEK PHOTOGRAPHY

40 URBAN GREENBELT A walkable and accessible park system for everyone.

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COMMUNITY SURVEY Austinites’ perceptions and priorities for downtown.

44 RANKINGS 46 TEAM & ACKNOWLEDGEMENTS

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DOWNTOWN IS AUSTIN AMPLIFIED

STATE OF DOWNTOWN AUSTIN 2022

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DOWNTOWN AUSTIN ALLIANCE

LETTER FROM THE CEO Our 2022 State of Downtown Report presents the latest

Our downtown stakeholders are collaborating on long-

data on a wide array of economic indicators that impact

term plans to address our explosive growth and take an

downtown Austin. This annual overview provides a

active role in creating a thriving and welcoming center.

current picture of downtown Austin today and what’s

As the region flourishes, the demand for transportation

anticipated for the future. As we continue to recover

connections and well-maintained park space continue

from the pandemic, we look forward, envisioning all that

to grow. Major infrastructure investments such as Austin

downtown Austin is and can become.

Transit Partnership’s Project Connect will link downtown to the rest of the city with a new multi-billion dollar rail

It is important to note that downtown Austin is still

system, featuring a downtown tunnel and all-electric fleet.

recovering from the impacts of COVID-19, however, we

Also, the official funding of the $4.9 billion Capital Express

ended 2021 in a strong position. Downtown’s office

Project will offer us a once-in-a-lifetime opportunity to

market is on the rebound with a rapid surge of leasing

lower the central-city highway and connect our city like

activity, leasing more space than any other submarket

never before. These and other initiatives will transform

in the nation as many employees are returning to

downtown for generations to come.

their downtown offices. Downtown’s housing market has surpassed pre-pandemic levels as demand for

We are excited for the future. Downtown is the pulse of

downtown living continues to grow. Increased foot traffic

our community that creates a spirit generated by the

reenergized downtown’s retail and nightlife venues as

diversity of people who frequent it daily. Together, we

vaccination rates increased and businesses reopened. The

amplify downtown, weaving together a mix of uses that

year 2021 reminded us that all the best parts of Austin are

support each other and result in the Austin we know and

found in downtown. Whether it’s parks and open spaces

will always love.

offering respite and recreation, a vibrant and interactive nightlife, or the ever-changing skyline, Austin is amplified by its downtown. It’s the heartbeat and pulse of this thriving region.

DEWITT PEART

The city’s urban core is successful because the people

President and CEO

who come downtown always leave with a sense of love and appreciation for how unique this place feels.

Those feelings are both organic and intentional; organic because downtown feels like it has always been here and intentional because we can witness it being shaped into something better. Downtown is growing rapidly and several upcoming opportunities highlight how important people-centric placemaking is to ensure this growth is realized without changing that feeling.

Downtown Austin Alliance

Dewitt Peart

STATE OF DOWNTOWN AUSTIN 2022

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DOWNTOWN AS A PERCENT SHARE OF THE CITY’S TOTAL REVENUE

I-35

Lamar Blv d.

Martin Luther King Jr. Blvd.

Lady Bird Lake

16% sales

32%

hotel rooms

34%

mixed beverages

DOWNTOWN BOUNDARIES

Source: State of Texas Comptroller, 2021

Downtown Austin Austin Downtown Public Improvement District

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

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DOWNTOWN AUSTIN ALLIANCE

DOWNTOWN IS AUSTIN AMPLIFIED From live music to coffee shops, community parks to historic theaters, office space to locally owned businesses, downtown is a collection of the best of what Austin has to offer and then some. In recent decades, downtown Austin has continued to evolve, oftentimes exceeding previous levels of investment, attracting more people, business, culture, civic engagement, arts and creativity at every turn. The energy of the place we call downtown is unmatched by any other part of the city.

All the things you love about Austin are maximized downtown.

Downtown serves as an economic anchor for the Central Texas region due to its concentration of jobs, transportation connections, and density of real estate development. Downtown is the heartbeat of the community amplified by its stamp on live music and entertainment, variety of food choices and experiences, and vibrancy generated by the diversity of people who frequent it each day.

The city center connects the community providing an atmosphere like no other, featuring high-quality parks, art and public spaces. The center city ecosystem brings together a mix of uses that support each other to create a unique experience that generates several radiating benefits to the rest of the region.

STATE OF DOWNTOWN AUSTIN 2022

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spaces g in t a e r c y jo n e ”I ere h w s e c n ie r e p x e and t. people can connecmusic, Whether it’s live ith getting active w touring family, friends or public Austin, beautiful spaces make the difference."

DOWNTOWN

BY THE NUMBERS Downtown makes up only 0.5% of Austin's land area but has substantial economic importance.

13,648

5.1M

residents

unique visitors annually

9,447

2.03M

residential units

annual transit ridership

106,500

150+

employees

acres of parkland

13,514

190

hotel rooms

historic locations

-SaulPaul

Source: U.S. Census 2020, Placer.ai, JobsEQ, Capitol Metro, Visit Austin, City of Austin, 2021

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DOWNTOWN AUSTIN ALLIANCE

ART, CULTURE & LIVE MUSIC Downtown Austin is much more than a business district, civic center, or entertainment hub. Millions of visitors, employees and residents come downtown to experience the uniquely Austin vibe we’re known for. Whether it’s day or night, downtown Austin is emerging as an 18-hour destination with the addition of major concert venues featuring national tours, global headquarters laying roots, expansive arts, music and cultural venues, and a growing residential population.

Downtown offers a full ’live, work, play’ experience in one place.

Live music is essential to Austin’s internationally known identity as the Live Music Capital of the World. This brand recognition permeates through downtown’s rich and vibrant nightlife. Small stages across downtown nightclubs showcase local and worldclass talent, while Austin City Limits Live and Moody Amphitheater are renowned concert venues for larger audiences.

Every year, thousands of Central Texans that don’t work or live near downtown visit in early December to experience the holiday cheer downtown, watch the Capitol tree lighting, and kick off their holiday shopping. On a more regular basis, downtown’s public markets are a community staple, bringing together local artisans, specialty shops, unique finds and eateries that embody that Austin vibe. The Sustainable Food Center hosts the Downtown Farmers’ Market weekly at Republic Square. The market has served the community since 2003 and features local farmers, small businesses, community programs and family activities. Frida Friday, Austin’s monthly market centered on supporting and amplifying local creatives of color, LGBTQIA identified folks, and women, hosted “The People’s Holiday Market” at downtown’s Republic Square.

Held in December, the event hosted several vendors featuring a full day of holiday shopping highlighting Austin’s robust and diverse artisans and creatives.

From day to night, downtown Austin is an emerging 18-hour destination.

STATE OF DOWNTOWN AUSTIN 2022

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DOWNTOWN VISITOR ACTIVITY (by the hour) Weekdays (Monday–Thursday)

Weekends (Friday–Sunday)

7M 6M 5M 4M 3M 2M 1M 0

12:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 AM AM AM AM AM AM AM AM AM AM AM AM PM PM PM PM PM PM PM PM PM PM PM PM Source: Placer.ai, January – December 2021

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DOWNTOWN AUSTIN ALLIANCE

STEVEN PAHEL

A PRIME LOCATION AUSTIN TALENT STATS

#7

CBRE Tech Talent Rank

79,230 Total Tech Employment

46.2% 25+ BA or Higher

66.5%

Population Growth BA or Higher since 2010

34.6%

Millennial Population Share

2.9%

Annual Average Population Growth Rate

No matter how you think about it, downtown Austin’s location cannot be beat.

Downtown Austin is in the center of one of

has grown by 269,023 in 10 years, one of

the fastest-growing metros in the country,

the fastest rates in the country. Austin’s

is between three of the largest cities in

growing talent pool has drawn major tech

the country and is only 11.3 miles from

companies like Meta, Google, TikTok, and

an expanding international airport. Lady

Indeed to downtown. Tech companies

Bird Lake and the string of quality parks

occupy significant downtown office lease

along its banks serve as downtown’s

space, giving them a competitive edge in

backyard. Downtown is recovering from

attracting and retaining this talent.

the impacts of the COVID-19 pandemic due to its central location that enables

Located between the University of Texas at

downtowners to access everything.

Austin, the bustling East Side, the historic South Congress (SoCo), and Zilker Park,

Downtown employers draw talent from the entire Central Texas region, where half of downtown’s 106K+ employees live outside the city limits.

Downtown’s location underpins Austin’s ability to attract and retain a highly educated workforce. The number of people with a bachelor’s degree or higher

Source: CBRE Tech Talent Report 2021

downtown has experienced exponential growth in the hospitality industry as people choosing to visit these places often stay in downtown hotels. The unparalleled quality of life and easy access to all of Austin has drawn in thousands of new residents downtown. Since 2010, the downtown residential population has grown by 79%.

STATE OF DOWNTOWN AUSTIN 2022

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Downtown employers benefit from the region’s well-educated, large, fast-growing and talented labor force.

PERCENT AGE 25+ WITH A BACHELOR’S DEGREE OR HIGHER & PERCENT CHANGE 2010 TO 2020 Population 25 years and over with bachelor’s degree or higher

Percent change 2010 to 2020

70% 60% 50% 40% 30% 20% 10% 0

Austin MSA

Dallas / Fort Worth MSA

Houston MSA

San Antonio MSA

Source: 2020 American Community Survey 5 Year Note: MSA = Metro Statistical Area

TOTAL POPULATION AGE 25+ WITH A BACHELOR’S DEGREE OR HIGHER IN THE AUSTIN REGION 700K 600K 500K 400K 300K 200K 100K 0

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Source: American Community Survey

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DOWNTOWN AUSTIN ALLIANCE

STATE OF DOWNTOWN AUSTIN 2022

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DOWNTOWN ECONOMIC INDICATORS

LINCOLN PROPERTY COMPANY / KAIROI

Although we still feel the effects of the COVID-19 pandemic, downtown’s economy remains strong. Continued losses felt from closed businesses, canceled concerts, and empty office towers may be concerning; however, the strength of downtown is largely unshaken. The city’s center continues to grow and build upon decades of investment, planning, and preservation.

Downtown presses forward, leading the way in many economic indicators locally and nationally, demonstrating qualities of resiliency, innovation and optimism. Downtown’s vitality radiates outward, nodding towards regional investment. Over the past few years, several significant investments have made headway in the Austin area, such as Project Connect’s public transit system, I-35 Capital Express Central’s

construction of interstate highway improvements, Apple’s 133-acre campus expansion, Tesla’s billion-dollar gigafactory installation, and Samsung’s $17B chip plant site selection.

As the densest concentration of employment for Austin’s young creative class, downtown serves as a magnet for talent, continuing the demand for office, hotel, residential, and retail space. Downtown remains energized with development from both public and private entities, laying the groundwork for the next 100 years.

Downtown’s vitality radiates outward, nodding toward regional investment.

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DOWNTOWN AUSTIN ALLIANCE

OFFICE MARKET & EMPLOYMENT MARKET STATS (2021 Q4)

14.8% Vacancy

$56.11

Asking Rent per SF

19,531,123 Total SF

2,161,727

SF Under Construction Source: CoStar

Leasing activity returns to prepandemic levels as downtown leads the nation in sublease space absorbed.

The downtown office market is

competitive employment market.

moving toward recovery after being

Google’s new 796,000 square foot

hit hard at the onset of the COVID-19

tower heads toward completion. Meta

pandemic. Demand for high-quality

has leased the entire 589,000 square

downtown office space returned in

foot office component of Sixth and

2021 as the Austin region ended the

Guadalupe. TikTok recently leased

year with a rapidly growing economy

126,000 square feet of 300 Colorado,

and the lowest unemployment rate

and Snap Inc. has leased 38,000

in the state at 2.9%. Total leasing

square feet in 405 Colorado. Office

activity downtown has surpassed its

developers remain optimistic about

2017-2019 average as 2.5M square

downtown’s recovery since market

feet were either renewed or leased in

rents remained stable throughout the

2021. A rapid surge in sublease space

pandemic, and nearly 2 million square

available early in the pandemic began

feet of office space were delivered

to recede as 732K sq. ft. of sublease

between 2020 and 2021. There are

space was absorbed downtown in

currently 11 office projects under

2021—more than any other submarket

construction downtown totaling more

in the nation.

than 3.3 million square feet. Twelve additional office projects have been

Major tech companies continue to

proposed or are in planning, which

see downtown as the place to hire

will add 6.2 million square feet.

and retain talent in such a highly

DOWNTOWN TOTAL LEASING ACTIVITY (by sq. ft.)

2.5M

2M

1.5M

1M

500K

0

2017-19 Average

2020

2021

Source: CoStar

STATE OF DOWNTOWN AUSTIN 2022

Net Absorption

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DOWNTOWN NET ABSORPTION AND DELIVERY (by sq. ft.)

Net Delivery

In 2021, net absorption surpassed 675K SF while 1.7M SF of new construction was delivered.

1M 800K 600K 400K 200K 0 -200K -400K

2017 Q1 Q2

Q3

Q4

2018 Q1 Q2

Q3

Q4

2019 Q1 Q2

Q3

Q4

2020 Q1 Q2

Q3

Q4

2021 Q1 Q2

Q3

Q4

Source: CoStar

DOWNTOWN VACANCY RATE (by percent of total existing rentable vacant building space) Downtown

Vacancy has stabilized as leasing activity has recovered to prepandemic levels.

Austin

16% 14% 12% 10% 8% 6% 4% 2% 0%

2017 Q1 Q2

Q3

Q4

2018 Q1 Q2

Q3

Q4

2019 Q1 Q2

Q3

Q4

2020 Q1 Q2

Q3

Q4

2021 Q1 Q2

Q3

Q4

Source: CoStar

TOP 5 SUBMARKETS BY CHANGE IN TOTAL SUBLEASE SF IN 2021 (by sq. ft.)

Downtown absorbed more sublease space in 2021 than any other submarket.

Downtown Austin Boston Financial District Santa Monica NYC World Trade Center San Francisco Financial District 600,000

400,000

200,000

0 Source: CoStar

WHO WORKS DOWNTOWN?

AGE

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DOWNTOWN AUSTIN ALLIANCE

29 or younger (21.3%)

After declining for four consecutive

growth across industries remains

quarters, downtown employment

uneven. Historically, employment

is back on an upward trajectory,

in downtown Austin has been

recovering the total number of jobs

largely concentrated in public

lost in 2020 in just two quarters.

administration or government

Most of this growth in employment

employment. More recently, as the

was driven by professional,

downtown office market continues

scientific, and technical service jobs,

to grow at a breakneck pace, the

which added a total of 1,937 jobs.

makeup of downtown employment

Unfortunately, accommodation

is shifting toward private-sector

and food service employment,

office employment. Since 2010,

or positions within hotels and

professional, scientific, and technical

restaurants, are still down by 3,095.

service employment has increased

Male (49.7%)

Female (50.3%)

ETHNICITY

Total downtown employment has recovered, although unevenly across all downtown industries.

55 or older (19.3%)

GENDER

30 to 54 (59.4%)

91% and information employment The makeup of total employment

has increased 209%.

Non-Hispanic or Latino (76.5%)

downtown continues to change as

RACE

Hispanic or Latino (23.5%)

White (80.4%) Asian (6.4%) Other (0.8%)

Black (9.8%) 2 or more races (2.6%)

Source: U.S. Census Bureau, Center for Economic Studies, LEHD

STATE OF DOWNTOWN AUSTIN 2022

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TOTAL DOWNTOWN EMPLOYMENT Total Downtown Employment

Total downtown employment recovered quickly in 2021 to its prepandemic levels.

108M 106K 104K 102K 100K 98K 96K 94K

2017 Q1 Q2

Q3

Q4

2018 Q1 Q2

Q3

Q4

2019 Q1 Q2

Q3

Q4

2020 Q1 Q2

Q3

Q4

2021 Q1 Q2

Q3

Source: JobsEQ

TOTAL DOWNTOWN ACCOMMODATION & FOOD SERVICE EMPLOYMENT Total Downtown Accommodation & Food Service Employment

Accommodation and food service employment has recovered only 29% of jobs lost.

14K 13K 12K 11K 10K 9K 8K

2017 Q1 Q2

Q3

Q4

2018 Q1 Q2

Q3

Q4

2019 Q1 Q2

Q3

Q4

2020 Q1 Q2

Q3

Q4

2021 Q1 Q2

Q3

Source: JobsEQ

TOP 5 DOWNTOWN INDUSTRIES BY TOTAL EMPLOYMENT EMPLOYMENT (2020 Q3)

2019 Q4 TO 2021 Q3

% CHANGE

Public Administration

31,316

881

3%

Professional, Scientific & Technical Services

21,752

1,937

10%

Accommodation & Food Services

9,809

-3,095

-24%

Information

7,522

670

10%

Health Care & Social Assistance

6,166

78

1%

INDUSTRY

Source: JobsEQ

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DOWNTOWN AUSTIN ALLIANCE

RETURN TO OFFICE Downtown Austin’s daily office use has reached up to 62% of its pre-pandemic levels.

Downtown offices are starting to feel like usual again.

As communities across the country recover from the impact of the COVID-19 pandemic, return to office is ’top-of-mind’ for many downtowns. Urban centers rely on a daily workforce to support local coffee shops, banks, retailers, and restaurants;

Conversely, downtown’s foot traffic during evenings and weekends

downtown Austin is no exception. Many

consistently climbed, signaling that

downtown employees continued to

downtown continued to draw people

work remotely throughout the year as

in for activities and events outside of

employers paused or reevaluated their

traditional business hours. As vaccination

return to office plans. Downtown daily

rates improved and local public health

office activity consistently lagged in the Austin area throughout the year, indicating that much of downtown’s workforce

trends cycled up and down throughout the year, downtown offices moved toward pre-pandemic occupancies.

continued to work from home.

AVERAGE PEDESTRIAN COUNTS AT 600 BLOCK OF CONGRESS AVENUE Total Daily Weekday Count (Monday – Thursday)

April 2019 to February 2020 Weekday Average

12K 10K 8K 6K 4K 2K 0

2019 Feb

Apr

Jun

Aug

Oct

Dec

2020 Feb

Apr

Jun

Aug

Oct

Dec

2021 Feb

Apr

Jun

Aug

Oct

Dec

Source: EcoCounter

STATE OF DOWNTOWN AUSTIN 2022

Austin

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PERCENT CHANGE IN DAILY ACTIVE USERS OF OFFICE SPACE (indexed to pre-pandemic levels) Downtown Austin

% change Austin

% change Downtown Austin

20%

9%

0

-9%

-20%

-27%

-40%

-45%

-60%

-63%

-80%

-81%

-100%

2020 Mar

May

Source: Brivo Systems LLC

Jul

Sep

Nov

2021 Jan

May

Mar

Jul

Sep

-99%

2022 Jan

Nov

Mar

Note: Brivo data, gathered from +20 million people across more than 50,000 locations, tracks access to offices, schools, multi-family dwellings, retail establishments, warehouses, government offices, houses of worship, and commercial properties.

Transportation Behavior Survey

In March 2021, Movability, the region’s first and only transportation management association, and Texas State University conducted a transportation behavior survey to better understand personal travel behaviors and motivations for traveling during the pandemic.

Hearing from more than 1,500 people, respondents that were not required to travel to their physical worksite balanced the risk and reward of leaving their homes during the pandemic.

Respondents gave thoughtful consideration to when and if they needed to leave their homes.

FREQUENCY OF TRAVELS TO PHYSICAL WORKSITE Daily

5 Times/Week

Before Pandemic

Weekly

Monthly

29%

During Pandemic

11% 0%

10%

Rarely/Never

57% 21% 20%

24% 30%

40%

7%

8% 50%

60%

36% 70%

80%

90%

100%

PLACES TRAVELED BY GOVERNMENT EMPLOYEES DURING PANDEMIC 37% went to a bar or restaurant by choice

41% visited family or friends for positive mental health reasons

60% were required to commute to work

Source: Transportation Behavior Survey, Movability, 2021

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DOWNTOWN AUSTIN ALLIANCE

HOUSING MARKET & RESIDENTS MARKET STATS (2021 Q4)

9.2%

Vacancy

$3.34

Asking Rent per SF

4,276

Total Condo Units

5,843

Total Multi-Family Units Source: CoStar

Downtown asking rent rose 14% in 2021 as demand for downtown living booms.

Living downtown means you have access to everything you love about Austin right outside your front door. The strength of the downtown residential market reflects that premium as the demand for downtown apartments and condominiums continued to grow even as the pandemic had some questioning the attractiveness of urban living.

While downtown asking rents for apartments fell at the onset of the pandemic, they have recovered stronger than ever as people continue to flock to downtown for the quality of life it provides. Overall vacancy downtown rose in 2021 as the completion of The Quincy and Alexan Waterloo delivered 621 new units. Downtown’s stabilized vacancy, which does not include recently completed projects, is sitting at a healthy 4.4%.

Two massive apartment projects in the Rainey Street Historic District highlight the surge of demand for downtown living.

This surge in demand is a positive sign indicating a strong market recovery as the development of more downtown housing units continues uninterrupted. Perhaps no district exemplifies this better than the Rainey Street Historic District. Here, three residential projects are under construction, and another seven have been proposed or are in planning. One project, 80 Rainey, is proposing 644 units, the most of any downtown building.

STATE OF DOWNTOWN AUSTIN 2022

Net Absorption

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APARTMENT NET ABSORPTION AND NET DELIVERIES Net Delivery

500 400 300 200 100 0 -100

2022 2017 2018 2019 2020 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Source: CoStar

2,976 apartments and 735 condos are under construction.

Another 2,992 and 860 are proposed or in planning.

DOWNTOWN DAILY ASKING RENT (per sq. ft.)

Daily Asking Rent $3.50 $3.40 $3.30 $3.20 $3.10 $3.00 $2.90 $2.80 $2.70 $2.60

2017 Q1 Q2

Q3

Q4

2018 Q1 Q2

Q3

Q4

2019 Q1 Q2

Q3

Q4

2020 Q1 Q2

Q3

Q4

2021 Q1 Q2

Q3

Q4

Source: CoStar

LINCOLN VENTURES / PAPPAGEORGE HAYMES

DOWNTOWN OVERALL AND STABILIZED VACANCY Overall Vacancy

Stabilized Vacancy

12% 10% 8% 6% 4% 2% 0%

2017 Q1 Q2

Q3

Q4

2018 Q1 Q2

Q3

Q4

2019 Q1 Q2

Q3

Q4

2020 Q1 Q2

Q3

Q4

2021 Q1 Q2

Q3

Q4

Source: CoStar

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DOWNTOWN AUSTIN ALLIANCE

The unmatched quality of life and ample opportunity within the region have made downtown Austin one of the fastest growing urban neighborhoods in the city.

DOWNTOWN FOR SALE HOUSING: ACTIVE LISTINGS & MONTHS OF INVENTORY (by quarter) Months of Inventory

Active Listings

Months of Inventory

Active Listings

12

250

10

200

8

150

6 100

4

50

2 0

2018 Q1

Q2

Q3

2019 Q1

Q4

Q2

Q3

Q4

2020 Q1

Q2

Q3

Q4

2021 Q1

0 Q2

Q3

Q4 Source: ABOR

DOWNTOWN FOR SALE HOUSING: AVERAGE CLOSING PRICE (by sq. ft.) $800 $750 $700 $650 $600 $550 $500

2018 Q1

Q2

Q3

Q4

2019 Q1

Q2

Q3

Q4

2020 Q1

Q2

Q3

Q4

2021 Q1

Q2

Q3

Q4

Source: ABOR

STATE OF DOWNTOWN AUSTIN 2022

According to the 2020 Census, all racial-ethnic population groups downtown experienced growth in the last decade, but the overall composition of the downtown population is largely unchanged.

Downtown Austin’s residential population doubled in the last 10 years, according to the 2020 Census. As

Residents aged 25 to 34 continue to represent the

Austin approaches the 1-million resident population

largest share of the downtown population as many

mark, residents continue to flock to the city’s center.

continue to seek the several quality-of-life attributes

New construction continued to supply the influx of

that Austin offers. Sixty-nine percent of downtown’s

demand for urban living.

population is non-Hispanic white and 28% have a household income of $200,000 or more. As one of the

Downtown Austin led the charge in delivering just

hottest Austin residential markets, downtown continues

under 4,000 residential units to the Austin-area

to evolve as it serves Austin’s diverse population.

housing market – more than any other area its size.

SHARE OF POPULATION CHANGE 2010–2020 6%

1%

1%

4%

RESIDENT STATS

4%

(2021 Q4)

2%

38%

0%

Ages 25-34

-2% -4% -6%

-1%

-4%

-1%

Hispanic

White

Black

Asian

Other

2 or more races Source: US Census 2020

TOTAL HOUSING UNITS AND RESIDENTS DOWNTOWN 1990–2020 Housing Units

20,000

948

Residents

4,222

2,331

4,176

5,670

7,635

9,447

13,648

16,000 12,000 8,000 4,000 0

1990

2000

2010

2020 Source: US Census 2020

28%

Household income $200K or more

At least 4,000 residential units were added to the downtown area in the last decade, more than any other area its size in the city.

The Downtown Austin Alliance considers the U.S. 2020 Census to be very conservative. Previous reports published reflected an internal staff estimate using total units delivered, average occupancy rates, and average household size.

23

2020 CENSUS: RECAPPING DOWNTOWN’S RESIDENTIAL BOOM

24

DOWNTOWN AUSTIN ALLIANCE

RETAIL & SMALL BUSINESSES Downtown’s vibrant storefront businesses

Average weekday pedestrian counts along

provide retail space for a diverse and growing

Congress Avenue fell 83% month over month in

base of residents, office employees, and

April 2020 as in-office work, conventions, and

visitors from near and far. The pandemic and

business travel ground to a halt, leaving only

stay-at-home public health orders diminished

residents to frequent the streets.

the consumer base that many downtown small As COVID cases descreased, businesses

businesses rely on.

Downtown businesses are capitalizing on the rebound in consumer demand. 60 new businesses have opened since the pandemic began.

reopened in full swing, as leisure travel resumed quickly. All three sources of demand show signs of recovery in 2022, growing well beyond their 2019 levels. As of February 7, 2022, 60 new businesses have opened downtown since the pandemic began.

NEW STOREFRONT BUSINESSES (by primary category)

STOREFRONT SPACE STATUS (prior to new business)

35

35

30

30

25

25

20

20

15 10

19

4 Food Places

24

10

5 0

31

15

29

Drinks & Entertainment

Retail Goods

8 Retail Services

Source: Downtown Austin Alliance

5 5 0

New Construction

Permanently Closed

Vacant Space

Source: Downtown Austin Alliance

STATE OF DOWNTOWN AUSTIN 2022

25

In October 2021, the average daily pedestrian count along the eastern 600 block of Congress Avenue was 76% of its 2019 value.

AVERAGE DAILY PEDESTRIAN COUNT AT 609 CONGRESS AVENUE (by month) Average Daily Count

Average Pre-Pandemic

12K

10K

8K

6K

4K

2K

0

2019 Apr

Jun

Aug

Oct

Dec

2020 Feb

Apr

Jun

Aug

Oct

Dec

2021 Feb

Apr

Jun

Aug

Oct

Dec

2022 Feb

Source: EcoCounter

BUSINESS OPERATING STATUS Operating

New Business

Temporarily Closed

100% 90%

11% 25%

80% 70% 60%

12% 15%

Permanently Closed

Status Unknown

6%

6%

12%

11%

6% 5%

23%

50% 77%

40% 30% 20%

63%

72%

49%

10% 0

July 6, 2020

February 7, 2021

September 5, 2021

February 7, 2022 Source: Downtown Austin Alliance

26

DOWNTOWN AUSTIN ALLIANCE

NIGHTLIFE ECONOMY Downtown’s vibrant nightlife economy began to recover in 2021 as major events and leisure travel returned.

At night, downtown Austin transforms

bars, while Red River Cultural District

into a lively atmosphere full of revelry

contains iconic must-visit music

that few cities can boast. Hundreds

venues like Stubb’s and Mohawk.

of bars, restaurants, food trucks and

East 6th Street, Austin’s original

dozens of live music venues open their

entertainment district, contains

doors, making Austin the Live Music

dozens of bars, nightlife venues and

Capital of the World.

iconic businesses such as Esther’s

While pedestrian overall consumer activity has returned, the live music economy continues to suffer.

Four bustling entertainment districts anchor this energizing atmosphere: The Rainey Street District, Red River Cultural District, East 6th Street District and West 6th Street District. Rainey Street District offers unique outdoor bungalow

Follies and Camino El Casino. As far as West 6th Street District, it's best described as a mash-up of the other three.

Live music venues have adapted tirelessly throughout the past two years. Now, we can see downtown’s nightlife economy begin to recover as Austin’s domestic leisure travel returns to pre-pandemic levels. While pedestrian foot traffic has begun to return to these four districts, the live music economy continues to suffer as ticket sales and attendance at shows remain depressed.

STATE OF DOWNTOWN AUSTIN 2022

27

TOTAL TAXABLE ALCOHOL RECEIPTS BY ENTERTAINMENT DISTRICT (indexed to 100 = 2017-2019 average) Rainey St.

West 6th

East 6th

Red River

200 160 120 80 40 0

2020 JAN

MAR

MAY

JUL

SEP

NOV

2021 JAN

MAR

MAY

JUL

SEP

NOV

Source: State of Texas Comptroller

TOTAL VISITS BY ENTERTAINMENT DISTRICT (indexed to 100 = 2017-2019 average) Rainey St.

West 6th

East 6th

Red River

200 160 120 80 40 0

2020 JAN

MAR

MAY

JUL

SEP

NOV

2021 JAN

MAR

MAY

JUL

SEP

NOV Source: Placer.ai

BUSINESS OPERATING STATUS Operating 100% 80%

New Business 5%

Temporarily Closed

Unknown

5%

11%

15%

9%

73%

76%

78%

East 6th

West 6th

Rainey St.

18% 5%

Permanently Closed 10% 6% 13%

60% 40%

71%

20% 0%

Red River Source: Downtown Austin Alliance

28

DOWNTOWN AUSTIN ALLIANCE

HOTELS & TOURISM

Downtown hotel room occupancy and other key economic indicators show strong signs of recovery.

The hotel market suffered significant

need to convert the building into

losses in the early months of the

an alternative care site for COVID-19

pandemic, but in recent months

patients dissipated. In light of this

there have been positive signs that

limited convention activity, weekday

a full recovery is on the way.

hotel occupancy only reached 59.6% in 2021 Q4 compared to 2019

People from near and far seek

Q4 at 72.9%.

downtown’s abundant array of amenities, such as an afternoon stroll along the lakefront trail or a nightlife filled with live music and great eats.

Weekends downtown were bustling with leisure travel as downtown weekend hotel occupancy for 2021 Q4 was 76.5%, somewhat similar to 2019 Q4 of 77.7%.

Unfortunately, convention business travel, which makes up a large share of weekday room demand, remained low in 2021. After a rocky start to 2021, the second half of the year saw the convention center successfully host 28 events since the

The average daily room rate downtown spiked in October 2021 as several major events created strong demand for rooms over the busy weekends.

STATE OF DOWNTOWN AUSTIN 2022

29

DOWNTOWN HOTEL OCCUPANCY RATE Downtown

Austin

100% 80% 60% 40% 20% 0%

2017 2018 2019 2020 2021 2022 Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Source: CoStar

DOWNTOWN HOTEL AVERAGE DAILY ROOM RATE Downtown

Austin

$300 $250 $200 $150 $100 $50 $0

2018 2019 2020 2021 2022 2017 Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Source: CoStar

DOWNTOWN HOTEL REVENUE PER AVAILABLE ROOM Downtown

Austin

$300 $250 $200 $150 $100

JTYPE

$50 $0

2018 2019 2020 2021 2022 2017 Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Source: CoStar, STR

30

DOWNTOWN AUSTIN ALLIANCE

October 2021 saw a major boost in tourism activity, reflecting previous Octobers downtown, an important month for downtown hotels.

people from all over the world to downtown Austin.

October 2021 looked similar to pre-pandemic Octobers.

M, Hyatt Centric, and Cambria are set to deliver 795

Austin Film Festival occur. Spring break and the return of SXSW increased travel downtown in March 2022.

Conventions and business travel are expected to resume in 2022. This rebound in major events and leisure tourism underpins the development of several new hotel developments downtown and across the region. Upscale hotel brands like Citizen hotel rooms soon.

JTYPE

Major international events in March and October bring

October 2021 saw Austin City Limits, Formula 1 and the

TOTAL MONTHLY VISITS BY ENTERTAINMENT DISTRICT October 2019

AUSTIN’S TOP 2021 INTERNATIONAL EVENTS

October 2021

400K 300K

AUSTIN FILM FESTIVAL October 1-10

200K

ACL FESTIVAL October 21-28

100K 0

Rainey St.

West 6th

East 6th

Red River Source: Placer.ai

FORMULA 1 October 24

STATE OF DOWNTOWN AUSTIN 2022

31

TOTAL MONTHLY PASSENGERS AT AUSTIN-BERGSTROM INTERNATIONAL AIRPORT 2019

2020

Total passenger numbers have reached prepandemic levels.

2021

1.8M 1.6M 1.4M 1.2M 1M 800K 600K 400K 200K 0

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Source: ABIA Activity Reports

TOTAL MONTHLY VISITS DOWNTOWN Total Visits

Total monthly visits have almost reached prepandemic levels.

4M 3.5M 3M 2.5M 2M 1.5M 1M 500K 0

2017 2018 2019 2020 2021 2022 Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Source: Placer.ai

TOTAL DAILY VISITS DOWNTOWN IN OCTOBER Comparable 2019

October 2021

Last year, total visits in October mirrored 2019 levels.

180K 160K 140K 120K 100K 80K 60K

1st 1st Weekend Week

2nd 2nd Weekend Week

3rd 3rd Weekend Week

4th 4th Weekend Week

5th Weekend Source: Placer.ai

32

DOWNTOWN AUSTIN ALLIANCE

3.6M Austin MSA Population by 2040 (Texas Demographic Center, 2018 Projections)

1ST

11TH

among the top 50 largest metros for new residents

largest city in the United States

(Austin Chamber of Commerce, 2022)

(US Census, 2020)

STATE OF DOWNTOWN AUSTIN 2022

33

BUILDING FOR THE FUTURE

ATELIER WONG PHOTOGRAPHY

Downtown is amid the development of a once-in-a-lifetime set of infrastructure investments that will forever impact central Texas. By 2040, the Austin regional population is expected to grow to 3.6 million, a 57% increase from its current population.

Natural increases and domestic and international migration add an estimated 180 people per day to the greater Austin area. This rapid growth and population increase make transformative projects such as Project Connect and TXDOT’s I-35 Capital Express Central reconstruction critical to the future of downtown and surrounding regions.

The future state of downtown is largely dependent on our ability to accommodate Austin’s continued growth.

As the nation’s 11th largest city and largest metro for new residents as a percentage of the total population, Austin is ushering in a new wave of investment that will shape this community for decades to come.

While downtowns across the country continue to recover from the effects of COVID-19, Austin has shown impressive signs of growth and continued momentum, often outpacing its peer cities.

The future state of downtown is dependent on our ability to capitalize on the continued demand and major investments on the near horizon to accommodate Austin’s continued growth. Downtown is faced with a unique opportunity and responsibility to our community to champion a new era built for everyone.

34

DOWNTOWN AUSTIN ALLIANCE

DEVELOPMENT PIPELINE Downtown’s development pipeline continues to expand as more projects are proposed and break ground.

The downtown development

Residences and 80 Rainey, will bring

pipeline reflects Austin’s strong

over 1,000 residential units to the

economic recovery and overall

area combined. Nine office projects

upward trajectory. Over the past

proposed or under construction

two years, proposed projects

are larger in gross square feet than

have been taller and bigger than

the signature Frost Bank Tower’s

in previous years. Even as the

548,254. The demand to live or work

future tallest building in Texas,

downtown has pushed the size and

Sixth and Guadalupe, continues

scale of real estate developments

to rise, 98 Red River prepares to

to new heights.

break ground and become the tallest building in the state once completed. The new 98 Red River building will tower over the skyline at 1,000+ feet; located along the Waterloo Greenway, 98 Red River will contain 241 hotel rooms, 352 apartment units, and 749,415 gross square feet of office space.

Two other developments in the Rainey Street district, River Street

11 office projects are currently under construction, and 11 more have been proposed or are in planning.

STATE OF DOWNTOWN AUSTIN 2022

35

DOWNTOWN HOTEL DEVELOPMENT PIPELINE (by number of hotel rooms) Waterloo Park Tower

Conrad Residences & Hotel

305 S. Congress

98 Red River

80 Red River Phase II

CitizenM

The Avenue Hyatt Centric Congress

305 S. Congress 80 Rainey Health South Redevelopment 80 Red River Phase I River Street Residences

200

The Modern Austin Residences 98 Red River 701 W 6th Annie B Stonelake 5RR Ikon Austin 80 Red River Phase II Conrad Residences & Hotel Shoal Cycle 1108 Nueces The Waller The Avenir 321 W. 6th Sixth and Guadalupe 415 Colorado Hanover Republic Square 44 East Hanover at 3rd & Brazos

305 S. Congress

97 Red River

The Republic

Perenial

Block 16

98 Red River

400 W. 14th

410 Uptown

1215 Red River

Zilker Point

502 W. 15th

Block 185

State Office Building

6th & Guadalupe

State Office Building

Innovation Tower

The Waller

Horizon Bank Tower

312 W. 6th

415 Colorado

TBA Building

Waterloo Central

RiverSouth

Whole Foods Building

Indeed Tower

300 Colorado

Proposed / In Planning

Under Construction

2022

Proposed / In Planning Under Construction 2022

Vesper 827 W 12th The Linden The Loren at Lady Bird Lake

1836 San Jacinto

405 Colorado

701 Rio Grande

600K

Cambria Hotel

100

Sienna at the Thompson

400

Fairfield Inn & Suites

200

3Waller

1M

2021

0

The Quincy

800K

1204 San Antonio

1.2M

Alexan Capitol

1.4M

Nativo

600

1155 Barton Springs

800

2021 0

The Quincy

1,000

Alexan Capitol

1,200

The Loren at Lady Bird Lake

300

Proposed / In Planning Under Construction 0

The Thompson

Hilton Garden Inn

400

2022 2021

Downtown is poised to add 1,015 hotel rooms in the coming years, or 7.5% of current inventory.

500

Source: Downtown Austin Alliance

DOWNTOWN MULTI-FAMILY & CONDO DEVELOPMENT PIPELINE (by number of units) 1,400

Source: Downtown Austin Alliance

DOWNTOWN OFFICE DEVELOPMENT PIPELINE (by sq. ft.)

1.6M

400K

200K

Source: Downtown Austin Alliance

36

DOWNTOWN AUSTIN ALLIANCE

The downtown development pipeline is

DEVELOPMENT OVERVIEW

picking up both in pace and scale. Prior to the pandemic, downtown real estate development expanded across all product types. Over 5.8 million gross square feet have been delivered since January 1, 2020, adding over 2 million square feet of office space, 2 million square feet of residential space across 1,601 residential units, and 1 million square feet of hotel space across 1,967 hotel rooms.

ake

Lad

dL r i B y

STATE OF DOWNTOWN AUSTIN 2022

37

Whole Food’s downtown footprint expanded during

Despite persistent supply-chain issues and

the pandemic with the construction and completion

construction labor shortages, construction

of their new 143,000 square foot office building

downtown continues. 16 projects have broken

adjacent to their current space. The 730,000 square

ground, totaling 4 million gross square feet. There

foot Indeed Tower was delivered in 2021 and sold

are currently 25 projects under construction,

to Kilroy Realty for $580 million, further validating

totaling over 8 million gross square feet, as this

downtown’s value from asset owners’ and operators’

period of expansion continues.

perspectives. Marriott delivered a new hotel on Cesar Chavez with 613 rooms, making it downtown’s fourth hotel with over 500 rooms.

Buildings Completed 2021–2022

Buildings Under Construction

Buildings In Planning

38

DOWNTOWN AUSTIN ALLIANCE

INVESTMENTS SHAPING DOWNTOWN’S FUTURE

Project Connect, Austin’s largest and most ambitious comprehensive transit plan yet, is en route to implementation and will bring a transformative light rail system to Austin that will connect downtown to much of the city. The Blue Line will provide a much-needed downtown connection to the Austin-Bergstrom International Airport, and the Orange Line will connect north and south Austin with downtown at its center.

GOVERNMENT CENTER / CAPITOL WEST STATION

CONGRESS AVENUE RECONSTRUCTION

PROJECT CONNECT

REPUBLIC SQUARE STATION

CYPRESS & SHOAL PUBLIC SPACE IMPROVEMENTS

e

Lady

Project Connect Light Rail

Lak d r i B

Project Connect Bus Rapid Transit

STATE OF DOWNTOWN AUSTIN 2022

39

These major investments will culminate in two new

safety, address congestion, and increase access. As

underground stations that will support the existing

downtown Austin continues to grow, improvements

downtown/convention center station, creating a

around mobility and safety will be necessary to

mobility corridor crossing on Congress Avenue between

support the increased number of people that go to

the Austin Convention Center and Republic Square.

and through downtown daily. This investment will also maintain and strengthen connectivity between

TxDOT’s I-35 Capital Express Central $4.9 billion project

downtown and East Austin through caps and stitches

will change how I-35 runs through central Austin and

co-created with community input.

how it connects downtown to the greater region.

Improvements to the corridor are essential to enhance

WATERLOO GREENWAY I-35 CAPITAL EXPRESS CENTRAL

POTENTIAL CAP & STITCH LOCAL ENHANCEMENTS CONVENTION CENTER EXPANSION

CONVENTION CENTER / BRUSH SQUARE STATION CONGRESS AVENUE STATION MACC/RAINEY STATION

WATERFRONT STATION

AUDITORIUM STATION

Project Connect Stations

Potential Cap Enhancements

Buildings Under Construction

Designs featured are for illustrative purposes and are subject to change.

40

DOWNTOWN AUSTIN ALLIANCE

URBAN GREENBELT Downtown Austin boasts an unparalleled amount of high-quality green space, and the quantity of this

Congress Avenue Reconstruction / The Congress Avenue Urban Design Initiative, a multi-million

green space is set to grow significantly. Projects and

dollar investment to redevelop the “Main Street

investments underway will enhance that experience

of Texas” between 4th Avenue and Riverside, will

and bring more pedestrians, bikers, and outdoor

begin phase 1 construction soon. Once completed,

enthusiasts downtown.

this essential street through downtown will have wider and shadier sidewalks, permanent bike lanes,

Cypress & Shoal Public Space Improvements /

Planned public improvements around 3rd Street

and significant improvements along the Congress Avenue Bridge.

and Shoal Creek will improve access, connectivity, and safety for pedestrians and bikers. This heavily trafficked area is an important connection point

I-35 Cap & Stitch Local Enhancements / I-35’s

reconstruction provides us an opportunity to build

between Shoal Creek, downtown, and the Butler

caps that could feature flourishing green spaces and

Trail system along Lady Bird Lake.

stitches that could include widened sidewalks and bikeways across the lowered highway. The next phase

Waller Creek and the Creek Delta / Waterloo

of this project will include preliminary engineering

Greenway’s next phase to revitalize Waller Creek is

and community co-creation of the cap structures

set to begin construction this year. The Creek Delta

and the surface amenities that communities along

project will provide elevated walkways and bridges,

I-35 will benefit from.

improving connections to Rainey Street District and the health of the creek’s diverse ecosystem.

Project Connect’s 4th Street Corridor /

South Central Waterfront Parkland

Improvements / The new signature waterfront park

will provide additional open greenspace, recreational

A redesigned and rebuilt 4th Street Corridor will

activities, and a bat observation plaza. The park will

provide several amenities for pedestrians and

connect people to the trail network along Lady Bird

bicyclists as part of Project Connect’s construction

Lake and is a critical component of downtown’s

of downtown’s new transit stations. The corridor will

Urban Greenbelt.

improve the west-east connection from Republic Square to Brush Square.

Seaholm Intake Improvements / The last portion of the old Seaholm Power Plant’s water intake facility is

Texas Capitol Complex Development / The first

actively under construction and will bring additional

phase of the Capitol Complex Plan will complete

community space and waterfront access directly

this year. The plan reimagines the Capitol Complex

from downtown.

as a destination that celebrates the Capitol and centralizes all state agencies.

TEXAS CAPITOL COMPLEX DEVELOPMENT

POTENTIAL I-35 CAP & STITCH LOCAL ENHANCEMENTS CYPRESS & SHOAL PUBLIC SPACE IMPROVEMENTS CONGRESS AVENUE RECONSTRUCTION SEAHOLM INTAKE

PROJECT CONNECT 4TH STREET CORRIDOR

WATERLOO GREENWAY

SOUTH CENTRAL WATERFRONT PARKLAND IMPROVEMENTS

42

DOWNTOWN AUSTIN ALLIANCE

COMMUNITY SURVEY The Downtown Austin Alliance contracted with research firm ETC Institute to administer a citywide community survey to learn more about how Austin residents feel about their downtown. The survey used statistically valid methodologies to randomly sample households in Austin. An overwhelming number of respondents, 79%, ’strongly agree’ or ’agree’ that a thriving and vibrant downtown is essential to Austin’s success. Similarly, 74% of respondents rated downtown as an ’excellent’ or ’good’ place for live music but gave poorer ratings to its affordability, safety during nighttime hours, and as a place to live. As a matter of priority, Austinites noted homelessness, traffic congestion, public safety, affordability and parking as top issues that should be addressed over the next two years downtown.

71% of Austinites visited downtown in the last year.

79% of Austinites agree that a thriving, vibrant downtown is essential to Austin’s success.

RESPONDENTS’ RATINGS FOR VARIOUS ASPECTS OF DOWNTOWN Excellent

Good

Neutral

Below Average

Poor

As a place for live music As a place to enjoy the arts As a safe place during daytime hours Availabililty of parks & outdoor areas to enjoy Condition of trails & creeks As a place to experience Austin’s unique history Condition of parks & public spaces As a place to be proud of Pleasure of walking around within downtown As a place to work Cleanliness of streets & sidewalks As a place to shop Availability of affordable places to go & things to do As a safe place during nighttime hours As a place to live

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

STATE OF DOWNTOWN AUSTIN 2022

43

Over 400 responses were collected, spanning 40 zip codes across the city.

AGE

RACE OR ETHNIC BACKGROUND

18-24 years

3.2%

African American / Black

7%

25-34 years

16%

American Indian / Native American

.9%

35-44 years

18.5%

Asian Pacific Islander

7.2%

45-54 years

19.1%

Hispanic / Latino

31.8%

55-64 years

19.4%

Middle Eastern

65-74 years

14.2%

White

72.7%

75-84 years

4.3%

Other

1.4%

85+

1.1%

.7%

Age not provided

4.6%

SEX

FREQUENCY RESPONDENTS VISITED DOWNTOWN IN PAST 12 MONTHS Often (1-3 days per week)

11.1%

Male

49.2%

Frequently (4-6 days per week)

6.8%

Female

49.9%

Everyday (7 days per week)

1.8%

Never (have not visited downtown)

9.1%

Occasionally (1-3 times per month)

29.3%

Prefer to self-describe

.9%

RENTER/OWNER

Rarely (1-6 times per year)

Rent

41.4%

Own

58.6%

42%

Source: ETC Institute

TOP 5 DOWNTOWN ISSUES THAT ARE IMPORTANT TO AUSTINITES

homelessness

traffic congestion

public safety

affordability

parking

44

DOWNTOWN AUSTIN ALLIANCE

AUSTIN RANKED #1 LABOR MARKET IN 2021 Wall Street Journal

AUSTIN RANKED #4 REAL ESTATE MARKET TO WATCH IN 2022 ULI Emerging Trends Report

AUSTIN RANKS #2 BEST PERFORMING AMONG TOP 50 METROS U.S. Bureau of Labor Statistics, CES, 2021

AUSTIN RANKS #5 IN BEST PLACES TO LIVE IN 2021-2022 U.S. News & World Report, July 2021

44

STATE OF DOWNTOWN AUSTIN 2022

45

AUSTIN RISES TO #1 OFFICE MARKET FOR 2022 Marcus & Millichap, March 2022

AUSTIN RANKS #7 MOST DYNAMIC METROS IN 2021 Heartland Forward

AUSTIN IS THE #2 CITY WITH THE MOST OPPORTUNITY FOR JOB SEEKERS IN RANKING OF 182 U.S. METROS LinkedIn, January 2021

AUSTIN RANKS #2 AMONG BEST PERFORMING CITIES Wilken Institute, 2022

45

46

DOWNTOWN AUSTIN ALLIANCE

SPECIAL THANKS TO OUR SPONSORS

AECOM/AECOM Hunt / Asakura Robinson & Nelson/Nygaard / Clean Scapes / JE Dunn Construction Lionheart / McCann Adams Studio / Savills / Sherrariums Plantscaping Company / STG Design

STATE OF DOWNTOWN AUSTIN 2022

47

SPECIAL THANKS Meredith Reshoft Graphic Designer & Creative Director, The Killswitch Collective

Capital Printing, LLC Printer

Sharon Jayson Contributor

DOWNTOWN AUSTIN ALLIANCE TEAM Dewitt Peart President and CEO

Amalia Carmona Project Coordinator

Dulce Aguilar Director, People and Administration

Amy Chambless Administrative Assistant

Molly Alexander Executive Director, Downtown Austin Alliance Foundation Amanda Baez Administrative Coordinator Melissa Barry Vice President, Planning

Brandon Fahy Operations Manager Julie Fitch Chief Operating Officer Nick Haines General Manager, Downtown Ambassadors

Jenell Moffett Associate Vice President, Strategic Initiatives Angela Navarro Community Outreach Coordinator Vanessa Olson Director, Investor Relations Emily Risinger Planning and Urban Design Manager

Olivia Larson Executive Assistant

Gabriel Schumacher Economic Development Research Manager

Ashley Rose Marino Communication Manager

Mandi Thomas Senior Director, Marketing

Raasin McIntosh Parks and Placemaking Director

Michele Van Hyfte Vice President, Urban Design

Christine Cramer Director of Market Analysis and Research, Visit Austin

Beverly Kerr VP Research, Austin Chamber of Commerce

Charles Heimsath President, Capitol Market Research

John Rees Director of Research, EY

Sam Tenenbaum Director of Multifamily Insights, Cushman & Wakefield

Raven Birk Digital Content Writer Bill Brice Vice President, Investor Relations Samia Burns Controller

Marilyn Willson Development Director

RESEARCH TASK FORCE

Donald Jackson Business Process Consultant, City of Austin Mike Kennedy President, MK Interests

Ryan Robinson Special Projects, Austin Transit Partnership Margaret Shaw Economic Redevelopment Program Manager, City of Austin

Lila Valencia City Demographer, City of Austin Nirav Ved Data and Operations Manager, CAMPO

FRONT COVER PHOTO BY JTYPE

THE DOWNTOWN YOU WILL ALWAYS LOVE

DOWNTOWNAUSTIN.COM