Downtown Austin Alliance State of Downtown Report 2021

STATE OF DOWNTOWN AUSTIN 2021

1

STATE of DOWN T OW N AUSTIN 2021

TABLE OF CONTENTS

DOWNTOWN AUSTIN ALLIANCE

6 DOWNTOWN IS ESSENTIAL:

MARKET, EMPLOYMENT 20 &OFFICE TALENT

THE COMMUNITY’S PANDEMIC RESPONSE

12 DOWNTOWN IS ADAPTIVE:

14

18 DOWNTOWN IS CHALLENGED: AN ANALYSIS OF MARKET IMPACT

DOWNTOWN’S VIBE DEFINES AUSTIN’S COOL

8

The heartbeat of our community is located downtown.

ART, CULTURE & LIVE MUSIC

10 DOWNTOWN – THE AUSTIN EXPERIENCE

The arts bring us together in the urban core.

RESPONSE BEFORE RECOVERY Cancellations and restrictions keep people home.

DISPROPORTIONATELY 16 DOWNTOWN IMPACTED Pandemic curbs key sources of activity and income.

Downtown is well-positioned for the future of work.

24 HOUSING MARKET & RESIDENTS Employment and population growth drive strong development outlook.

28 RETAIL & SMALL BUSINESS Businesses struggled as demand downtown disappeared.

32 HOTELS & TOURISM

KEYS TO RECOVERY

36 DOWNTOWN IS RESILIENT:

ATELIER WONG PHOTOGRAPHY

Hotels were hit hard by the year’s pause in tourism.

36 DEVELOPMENT OVERVIEW Rapid development continues shaping new downtown districts.

40 MOBILITY Downtown is at the center of major infrastructure improvements.

42 PARKS & PUBLIC SPACE Downtown green spaces and trails provide recreation and respite.

44 RANKINGS 46 TEAM & ACKNOWLEDGEMENTS

3

THE SOURCE OF AUSTIN’S VALUE AND VITALITY

STATE OF DOWNTOWN AUSTIN 2021

4

DOWNTOWN AUSTIN ALLIANCE

LETTER FROM THE CEO Our annual State of Downtown Report provides a wide array

This year certainly underscored the importance of

of economic impact numbers for downtown Austin. Each

outdoor space to our mental and physical wellbeing, and

of these charts and statistics tells a story of how people

downtown’s parks and squares saw increased activity. We

experience downtown—how they live, work, eat, move and

are about to welcome the opening of downtown’s newest

play. The year 2020 started like others in the previous decade,

park, Waterloo Park, which is the first phase of the Waterloo

with record investment and growth levels, the buzz of

Greenway that will eventually line downtown’s entire

new hotels and hotspots opening and a flurry of activity to

eastern border. Construction also began on the Texas Mall

prepare for the SXSW Conference & Festivals.

at the Texas Capitol, which will provide more green space on downtown’s northern edge. These public spaces also

Of course, the COVID-19 pandemic quickly shifted us

serve an important civic role. As we saw this year, downtown

all into a new reality. Downtown streets that would

is where our community comes together to protest, march

normally be filled with music and visitors emptied out

and celebrate.

in mid-March. While the pandemic has impacted every resident and area of Austin, downtown has faced unique

Recovery and growth will also require strong infrastructure.

challenges. Downtown is the center of the city’s live music

Recognizing this, Austin residents made a vote of

and entertainment scene, and is home to the greatest

confidence in our future by passing Project Connect, a

concentration of hotels in the city. It’s also our region’s

$7.1 billion transit initiative that will connect downtown to

economic center, with more than 100,000 daily employees.

North Austin, South Austin and the airport via light rail and

With 60% of those employees working from home, sharp

other modes of transportation. With Austin still leading

declines in tourism, and business closures and capacity

national “best of” and population growth lists, this will be

limits to comply with public health guidelines, the local

critical to ensuring equitable access and an enjoyable living

businesses that make downtown unique have struggled

experience for all people.

greatly. Foot traffic from office workers and visitors from near and far are essential to the survival of our downtown

Ultimately, it is the people and businesses that make

live music and entertainment venues, hotels, bars,

downtown a special place to be. We’ve missed so many of

restaurants and retail.

our friends and neighbors this year and are encouraged to see them steadily returning to write the next chapter of our

However, the much-anticipated “light at the end of the

collective story.

tunnel” burns brightly for Austin and downtown. The elements that make downtown a prime destination are still firmly in place, resilient and ready for post-pandemic life.

Our businesses have shown incredible creativity in pivoting this year, and 2021’s vaccine rollouts should continue to aid their reopenings. Investors, major employers and the hospitality industry remain bullish on downtown. In fact, 2021 is set to break all records for development of Class A office space. The advantage of being a relatively new city is that developers can build to new standards that promote health and wellbeing.

DEWITT PEART President and CEO Downtown Austin Alliance

Dewitt Peart

STATE OF DOWNTOWN AUSTIN 2021

5

I-35

Lamar Blv d.

Martin Luther King Jr. Blvd.

Lady Bird Lake

DOWNTOWN BOUNDARIES Downtown Austin Downtown Austin 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 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 initiatives that enhance the value and vitality of downtown Austin.

6

DOWNTOWN AUSTIN ALLIANCE

sa e c n a n fi t a h t e engin ic m o n o c e toric is e h h t e h is t n is w o t It n . w "Do of life y t li a u q is r u It o . f n o io g t e r r a p d n e a g r y la Cit r u o f o t r stin a e h l a and cultur art, the place where all of Au the social heher." comes toget eview 2000 R T A D /U R IA -A

DOWNTOWN

BY THE NUMBERS

Downtown makes up a small share of Austin’s land area, 0.5%, but has substantial economic importance.

9.2M

19M

$624M

square feet under construction

square feet of planned space

combined tax revenue

STATE OF DOWNTOWN AUSTIN 2021

7

DOWNTOWN IS ESSENTIAL: THE SOURCE OF AUSTIN’S VALUE AND VITALITY

ATELIER WONG PHOTOGRAPHY

Downtown provides an immersive and vibrant experience that is authentically Austin.

When downtown Austin prospers,

This combination provides an immersive

the entire region prospers. As the

and vibrant experience that is

center of our region’s economy and

authentically Austin. There’s something

its unique sense of community,

for everyone downtown, whether it’s

downtown is many things to many

strolling along the area’s many trails or

people. It’s our region’s central

pathways, relaxing in its public spaces

business and employment district.

or parks, dining at a favorite restaurant

It’s a neighborhood thousands of

or attending a concert, performance

people call home. It’s a destination

or cultural exhibit. And while it

for visitors from near and far seeking

experienced unfathomable losses this

entertainment, art, history and culture.

past year that defied its record-setting

It’s the seat of our state government

economy, downtown is resilient. Right

where Texans march, celebrate and

now, more than ever, downtown is

protest. It’s our city’s living room where

brimming with transformative initiatives

people gather to feel connected to

that will make it even more vibrant,

their community.

connected, accessible and welcoming.

16K

99K

12,728

12,359

150

15

190

residents

employees

residential units

hotel rooms

acres of parkland

miles of downtown area trails

historic locations

8

DOWNTOWN AUSTIN ALLIANCE

DOWNTOWN’S VIBE DEFINES AUSTIN’S COOL

/// By the Numbers /// DOWNTOWN VENUES (PRE-PANDEMIC)

61

VENUES PERMANENTLY CLOSED

10

EMPLOYMENT (PRE-PANDEMIC)

14,607

In response to the COVID-19 pandemic, we’ve all been forced to forgo one of the oldest traditions in civilization: experiencing live music together. Given how much of Austin’s unique culture and shared identity comes from live music, and the critical role live music plays in the downtown experience, this has been emotionally devastating for our downtown community.

It’s also been economically devastating. In Austin, travel, spending, and overall economic output from tourism sharply declined due to the pandemic, leaving the live music industry in dire straits. In 2018, the leisure and hospitality industry was the third-largest employment sector in Austin, providing 130,000 jobs. And visitors to Austin spent $9.2 billion in 2019 alone. Visitors make up a substantial portion of the downtown consumer base—before the pandemic, they made up 62% of all vehicle trips downtown.

Live music is essential to downtown and the pandemic has revealed how important human connection and shared experiences truly are.

Live music and entertainment are essential for other downtown sectors, drawing people to eat, drink and shop. And companies often cite Austin’s culture and entertainment as top attractors for recruiting employees.

By the Numbers Sources: City of Austin Cultural Asset Mapping Project, Downtown Austin Alliance, JobsEQ (includes arts, entertainment, recreation, and accommodation & food services) and JobsEQ (data only available through 2020 Q3).

CURRENT EMPLOYMENT

11,692

STATE OF DOWNTOWN AUSTIN 2021

LEFT: BRITTANI BURNS // ABOVE: STUBB’S

PHOTO CREDIT

-Ryan Garrett, General Manager, Stubb’s

”Music and live performance is the very soul of Austin, and the heartbeat of this community is located in downtown. While we focus on be economic recovery, we must l equally mindful of our emotiona well-being. Experiencing live performance rebuilds your ur spirit and returns joy to yo life in ways that virtually nothing else can." ector, Austin -Jim Ritts, CEO/Executive Dir State Theatres Theatre Alliance, Paramount &

9

”When people think of Austin, they of live music. It is who we are an think d what we do, and no place does it better the sake of downtown Austin’s vita. For now is the time to get out and lity, the musicians and the stages th support play. Without them, we lose tourisat they revenue, and most importantly, ou m, r identity."

ART, CULTURE & LIVE MUSIC DOWNTOWN

/// By the Numbers /// PUBLIC ART INSTALLATIONS

Downtown’s cultural offerings enhance its character, heritage and beauty, and create a unique sense of place not easily replicated in other parts of the city. Downtown is home to dozens of live music venues, hundreds of restaurants and bars, more than 100 public art installations, 190 historic structures and 24 museums. Additionally, almost half of downtown’s area is dedicated to public space, including plazas and more than 150 acres of parks and open spaces such as Lady Bird Lake.

Downtown is where our community comes together to shape our future and address our past.

Walking through these public spaces, people can not only enjoy the outdoors but also hundreds of street art installations and the sounds of live music emanating from nearby bars.

Downtown is also the public stage where Austinites come together to address our history and shape our future. While downtown largely emptied out this year as we fought the virus, it continued to fill up when our community was compelled to speak out and stand up. Over the summer of 2020, downtown saw several days of protest, joining the global calls for racial justice after the death of George Floyd and the local movements spurred by the death of Mike Ramos. People also gathered downtown to both celebrate and protest the presidential election. These events drove massive spikes in downtown pedestrian activity.

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.”

100+

HISTORIC STRUCTURES

190

MUSEUMS

24

ACRES OF OPEN SPACE

150+

CHARLES FAIR

10

DOWNTOWN AUSTIN ALLIANCE

STATE OF DOWNTOWN AUSTIN 2021

S Raasin in the r, e d n ou F , h os t -Raasin McIn

PHOTO: JOE YBARRA // ARTIST: REX HAMILTON

DOWNTOWN AUSTIN ALLIANCE

11

time lt u c fi if d y r e v during a g n li a e h s u and we t , y h g it u c o r r b u o s f t o r a l u o e "Th rt and s a e h e h t 's live."

It a . y t r a o e t b is h e h r t u o p e in ary to ke s s e c e n is t a h must do w un

12

DOWNTOWN AUSTIN ALLIANCE

DOWNTOWN IS ADAPTIVE: THE COMMUNITY’S PANDEMIC RESPONSE The COVID-19 pandemic presented unique challenges to downtown businesses. Downtown is a major tourism destination and the city’s largest employment center, so the many businesses that rely on tourists and workers struggled to survive this year as lockdowns spurred visitors to stay home and office buildings to empty. Pedestrian activity along Congress Avenue declined as much as 80%, transit ridership dropped as much as 67% and retail spending dipped as much as 53%.

Our downtown community had to accept a new reality: The public health crisis would have to be addressed and managed before the economic crisis could be resolved. Until employees returned and tourism increased, downtown businesses would continue to struggle. The situation forced our small and local, music, arts, entertainment and hotel businesses to make hard decisions and find new ways to operate.

Staying safe, informed and connected became

ATELIER WONG PHOTOGRAPHY

the new priorities.

STATE OF DOWNTOWN AUSTIN 2021

13

3/6/2020

Declaration of local disaster

3/6/2020

SXSW cancellation announced

3/13/2020

Austin’s first case of COVID-19

3/24/2020

City of Austin Stay at Home, Work Safe Order

3/27/2020

Coronavirus Aid, Relief and Economic Securing (CARES) Act

Gov. Abbot’s plan to reopen Texas’ economy, restaurants can open at 25% capacity

5/31/2020

Child cares reopen, retail reopens at 25%, restaurants at 50%

7/2/2020

Face coverings required statewide

9/17/2020

Most businesses can operate at 75%, bars to remain closed

9/28/2020

Austin back to 80% of pre-pandemic traffic rush as city reopens

10/7/2020

Texas bars can open at 50%, Austin opts out due to recent case surges

1/10/2021

1st phase of vaccines are available in Austin

3/10/2021

Gov. Abbot lifts mask mandate, allows businesses to open at 100%

COVID-19 TIMELINE

5/1/2020

14

DOWNTOWN AUSTIN ALLIANCE

CHANGE IN PEDESTRIAN ACTIVITY (Due to COVID-19)

Increased Activity No Change Decreased Activity

Base Map Data © 2020 Google

Downtown Austin is a tapestry of districts offering unique assets and experiences.

Pandemic-driven restrictions changed activity in downtown by as much as 72%.

Pedestrian activity declined sharply in March 2020, but toward the end of the year there was a consistent uptick in activity during the weekends. Weekend drive-in tourists drove growth in pedestrian activity, as did events such as protests related to social justice and the presidential election. Bars and nightclubs in downtown’s entertainment district

experienced limited reopening success, as many could only open with additional restrictions such as serving food or limiting capacity.

Stay-at-home, work safe orders, first issued on March 26, 2020, were extended multiple times during the year due to increases in COVID-19 cases. An estimated 40% of downtown occupations were considered essential and/or not compatible with working remotely.

Travel and tourism sharply declined, reducing a large portion of the pedestrians that usually fill downtown’s streets, drawn by its unique activities, districts and corridors.

Downtown’s parks, trails, and waterways saw increased pedestrian

activity, as they play a vital role in supporting our community’s mental and physical well-being.

A new remote working culture quickly took shape as downtown’s major employers adjusted their work-fromhome policies to provide employees flexibility and the ability to maintain productivity away from the office.

For example, Whole Foods Market added additional square footage to its downtown footprint to prepare for new workplace practices post-pandemic.

Construction continued downtown, delivering a record number of projects including the Downtown Metro Rail Station, the Austin Marriott Hotel and the Austin Proper Hotel and Residences.

Source: Streetlight Data

STATE OF DOWNTOWN AUSTIN 2021

15

2020: An Impactful Year Downtown is the region’s largest generator of tax revenue and home to a unique concentration of economic activity. This activity has significantly declined due to the COVID-19 pandemic, introducing a substantial economic output and tax revenue gap that has yet to be replaced. Tracking the relationship between declines and inclines downtown shows:

1

As overall travel declined, so did the downtown tourism market.

COVID-19 IMPACT ON DOWNTOWN TOURISM (Percent change from 2019) Downtown Mixed Beverage

Downtown Hotel Occupancy

Austin Airport Passenger Travel

10% 0% -10% -20% -30% -40% -50% -60% -70% -80% -90% -100%

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Source: State of Texas, Austin-Bergstrom International Airport

Downtown offices emptied quickly as stay-at-home orders went into effect and remained empty throughout the year as return-to-office plans continued to evolve. As much as 60% of downtown’s

2

workforce can work from home. According to Brivo, a building access security company, unlocks of downtown office buildings decreased by as much as 90%.

PERCENT CHANGE IN DAILY ACTIVE USERS OF OFFICE SPACE (Compared to 2019 daily active use) Percent Change in Austin

Percent Change Downtown

10% 0% -10% -20% -30% -40% -50% -60% -70% -80% -90%

Mar 8

Mar 22

Apr 12

May 17

May 31

Jun 14

Jun 28

Jul 12

Jul 26

Aug 9

Aug 23

Sep 6

Sep 20

Oct 4

Oct 18

Nov 1

Nov 15

Nov 29

Dec 13

Dec 27

Source: Brivo Systems LLC

16

DOWNTOWN AUSTIN ALLIANCE

Austin continues to be one of the safest large cities in the country. From 2015 to 2019, downtown saw an upward trend in violent crime, corresponding with Austin’s growing population. In 2020, violent crime

3

downtown decreased by 29% from 2019 levels, in part due to smaller crowd sizes and limited business reopenings. Paradoxically, the public’s perception of downtown safety has decreased.

COVID-19 IMPACT ON DOWNTOWN VIOLENT CRIME (Number of incidents) (2015-2019) 5-year average

2020

24 20 16 12 8 4 0

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Source: KrimeLabb

Many people navigated downtown in different ways this year as they balanced following public health precautions and conducting business. The use of different travel modes shifted accordingly.

While transit ridership dropped by as much as 60% in April 2020, overall, this mode experienced

4

the least amount of change. Car travel showed the most significant rebound, increasing 30% from its 74% drop in March. Micromobility (bikes, scooters, etc.) and pedestrian foot traffic suffered the deepest and longest dips in activity but are slowly rebounding each month.

COVID-19 IMPACT ON DOWNTOWN MOBILITY (Percent change from 2019) Downtown Daily Vehicle Traffic

Austin Transit Ridership

Austin Micromobility

Congress Avenue Pedestrian Counts

10% 0% -10% -20% -30% -40% -50% -60% -70% -80% -90% -100%

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Source: Streetlight Data, City of Austin, EcoCounter

STATE OF DOWNTOWN AUSTIN 2021

17

Austin-area consumer spending dropped as much as 30% early in the pandemic but quickly rebounded to exceed pre-pandemic levels. For the most part, benefits of these spending trends have not translated

5

to downtown. Retail sales have remained severely depressed as many continue to spend money closer to home or online. Additionally, a largely remote downtown workforce coupled with a sharp reduction in tourism spending has left a void in downtown foot traffic and retail business patronage.

COVID-19 IMPACT ON CONSUMER SPENDING (percent change in consumer spending, indexed to 2019 levels) Downtown

Austin

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

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Source: Affinity Solutions

As stay-at-home orders went into effect, pedestrian activity plummeted as residents, visitors and workers limited their activity to essential travel only. As mandates were lifted and additional safety

6

measures were put in place, overall pedestrian traffic increased downtown. Prior the pandemic, visitors represented 62% of downtown pedestrian activity. And while downtown saw a 74% decrease in daily traffic from visitors, this group has also been the quickest to return. Most are likely from Austin or places accessible by car.

COVID-19 IMPACT ON DAILY PEDESTRIAN ACTIVITY (Estimated number of people based on location analytics) Residents

Visitors

Workers

280K 240K 200K 160K 120K 80K 40K 0

Pre- Mar Covid 17-31

Apr Apr May May 1-15 16-30 1-15 16-31

Jun Jun Jul 1-15 16-30 1-15

Jul Aug Aug 16-31 1-15 16-31

Sep Sep Oct 1-15 16-30 1-15

Oct 16-31

Nov Nov Dec 1-15 16-30 1-15

Dec 16-31

Source: Streetlight Data

18

DOWNTOWN AUSTIN ALLIANCE

k, r o w o t n i ust A n i e v i l n't o d e l p re." o e e h P " e v i l o t r they work , filmmaker & screenwrite odriguez R t r e b o -R

STATE OF DOWNTOWN AUSTIN 2021

19

DOWNTOWN IS CHALLENGED: AN ANALYSIS OF MARKET IMPACT

Downtown Austin’s momentum continues.

PAUL HANAOKA

The COVID-19 pandemic has had a devastating impact on many businesses, especially those in the hospitality and tourism industries.

Yet Austin remains ahead of its peer cities, outperforming them on a wide range of economic indicators.

As the rest of the world grapples with rebuilding what has been lost, Austin continues to draw business, talent and investment from all over the country.

Despite the pandemic, Austin’s diverse talent still continues to thrive.

20

DOWNTOWN AUSTIN ALLIANCE

OFFICE MARKET, EMPLOYMENT & TALENT

Over 1.5 million square feet of Class A office space will deliver downtown in 2021, breaking all previous annual records.

The pandemic has caused

talent will continue to outpace

significant disruption to our office

supply in many industries. With its

market. As most office workers

abundant parks and green space,

continue to work from home, many

live music, bars and restaurants,

companies have put off leasing new

downtown Austin is essential to our

space. As a result, leasing activity

city’s ability to attract top talent.

fell significantly compared to recent

Major downtown employers remain

years just as the total amount of

committed to downtown, and the

sublease space available increased

area continues to draw new talent

to a record high of 1.3 million square

as well. Whole Foods is moving

feet at the end of 2020. Overall,

forward with the development

asking rents fell 2% and vacancy

of Shoal Creek Walk’s second

nearly doubled to 10.5% throughout

building, and the Austin Innovation

2020.

District’s first tower is underway.

Additionally, major downtown

Just as the pandemic will be

tenants like Google and Facebook

temporary, so too will its intense

have maintained their intention to

impact on our market. Downtown

return to their offices, recognizing

Austin’s office market is well-

the important role of office space

positioned to capitalize on the

in building corporate culture and

future of work. The demand for

employee collaboration.

OFFICE BUILDINGS DELIVERING DOWNTOWN IN 2021 INDEED TOWER

(669,130 SF)

300 COLORADO (353,938 SF)

1836 SAN JACINTO

(230,609 SF)

405 COLORADO (206,946 SF)

THE QUINCY (78,196 SF)

STATE OF DOWNTOWN AUSTIN 2021

1.7M

144K

17K

375K

789K

851K

Estimated Delivery 484K

179K

Delivery 71K

2M

694K

790K

Net Absorption

21

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

1.5M 1M 500K 0

-1.5M

2015

2016

2017

2018

2019

--16,515

-1M

-890K

ATELIER WONG PHOTOGRAPHY

-500K

2020

2021

YTD 4.1.2021 Source: CoStar

DOWNTOWN OFFICE MARKET RENT & VACANCY RATE (per sq. ft.)

Downtown Austin Asking Rent

Downtown Austin Vacancy Rate

12%

$60

10%

$50

8%

$40

6%

$30

4%

$20

2%

$10

0%

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1

$0

Source: CoStar

DOWNTOWN OFFICE MARKET LEASING ACTIVITY 2020

2017–2019 (3 year average)

Largest Lease of the Year

Total SF Leased

500,000

1,000,000

1,500,000

2,000,000

2,500,000 Source: CoStar

22

DOWNTOWN AUSTIN ALLIANCE

Austin Talent /// By the Numbers /// CBRE TECH TALENT RANKING (2020) AUSTIN DISTEL

#6

TOTAL TECH TALENT EMPLOYED (2019)

76,270

GROWTH IN TECH TALENT (2014–2019)

11%

GROWTH IN POPULATION WITH BACHELOR’S DEGREE OR HIGHER (2010–2019)

57%

GROWTH IN TOTAL LABOR FORCE (2010–2020)

39%

Although some industries were hit hard, downtown didn’t lose as many jobs as feared.

In 2019, total employment

downtown year over year. These

downtown surpassed 100,000

industries enjoyed the ability

for the first time ever. However,

to quickly pivot to remote work

the area has since lost 3,255 jobs

while still maintaining a desirable

(3.2% of its pre-pandemic peak),

downtown address for recruiting

mirroring the city’s job losses.

talent—and returning to the office as

The most recently available data

the pandemic recedes.

available for downtown confirms that some industries were hit harder than others. As of the third quarter of 2020, employment in the accommodation and food

Source: CBRE Scoring Tech Talent 2020 Report, American Community Survey 5-Year Estimates

services industry was down 20% from the previous year.

Conversely, the technology and professional service industries expanded, adding 652 jobs

While the food and accommodation industries struggled, the technology and professional service industries expanded.

STATE OF DOWNTOWN AUSTIN 2021

23

WHO WORKS DOWNTOWN? WORKER RACE

61% MALE // 39% FEMALE

White (89%) Asian (7%)

47% 25-34 YEARS OLD // 18% 35-44 YEARS OLD

Black (2%) Two or more race groups (2%)

72% HAVE A BACHELOR’S DEGREE OR HIGHER WORKER ETHNICITY: 14.1% HISPANIC OR LATINO

Source: JobsEQ

DOWNTOWN EMPLOYMENT % Change from One Year Ago

Total Employment

% Change Year

Total Downtown Employment

5%

120K

4%

100K

3% 2%

80K

1%

60K

0% -1%

40K

-2%

20K

-3% -4%

2005 Q3

2006 Q3

2007 Q3

2008 Q3

2009 Q3

2010 Q3

2011 Q3

2012 Q3

2013 Q3

2014 Q3

2015 Q3

2016 Q3

2017 Q3

2018 Q3

2019 Q3

2020 Q3

0

Source: JobsEQ

TOP 5 DOWNTOWN INDUSTRIES BY EMPLOYMENT EMPLOYMENT (2020 Q3)

% OF DOWNTOWN EMPLOYMENT

% CHANGE YEAR OVER YEAR

Public Administration

31,097

31%

2%

Professional, Scientific & Technical Services

20,466

21%

3%

Accommodation & Food Services

10,787

11%

-20%

5,117

5%

-3%

5,094

5%

5%

INDUSTRY

Health Care & Social Assistance Finance & Insurance

Source: JobsEQ

24

DOWNTOWN AUSTIN ALLIANCE

HOUSING MARKET & RESIDENTS Development outlook is strong as employment and population growth continue.

Downtown residents enjoy being

surpassing 2018 and 2019 levels.

in the center of everything life has

Asking rents fell quickly during the

to offer. From their front door, they

peak of the pandemic but have

can easily access the Live Music

since regained much of their lost

Capital of the World® and walk

ground as year-over-year absorption

to hundreds of places to eat and

remained positive.

drink. The pandemic forced this activity to stop and downtown fell

The downtown Austin apartment

quiet, but as more restaurants and

market was in excellent condition

bars reopen, downtown residential

prior to the pandemic as demand

leasing activity has increased.

for downtown living continued to

Two massive apartment projects in Rainey district continue to move forward despite the pandemic.

After a rough second quarter of 2020 when absorption fell by 79 units, net absorption rebounded in the third and fourth quarters,

surge new developments forward.

Several projects will deliver in 2021, including The Quincy, Alexan Capitol and the Sienna at the Thompson, providing over new 900 units total. Two massive apartment projects in the Rainey District, 9092 Rainey and Riverside Residences, continue to move forward despite the pandemic and will bring 198 and 409 units, respectively, to this growing neighborhood.

STATE OF DOWNTOWN AUSTIN 2021

25

ERIKA RICH PHOTO

Downtown’s rent premium compared to the rest of the city dipped temporarily but has recovered as more businesses reopen.

DOWNTOWN AUSTIN ASKING RENT (per month) Downtown Austin Asking Rent

Downtown Austin Asking Rent Growth (YOY)

10%

$3,000

8%

$2,500

6% 4%

$2,000

2%

$1,500

0% -2%

$1,000

-6%

$500

-8% -10%

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1

$0

Source: CoStar

AUSTIN APARTMENT VACANCY (percentage of vacant apartments) Downtown Austin Vacancy

Citywide Vacancy

25% 20% 15% ATELIER WONG PHOTOGRAPHY

10.34% 10% 5% 0%

7.32%

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Source: CoStar

/// By the Numbers /// DOWNTOWN RESIDENTS

16,700

ERIKA RICH PHOTO

(2020 EST)

RESIDENTIAL UNITS

12,728 (2020 EST)

WHO LIVES DOWNTOWN? Millennials (56%)

59% MALE // 41% FEMALE

Baby Boomers (23%) Generation X (16%)

$116K MEDIAN HOUSEHOLD INCOME

The Silent Generation (3%)

77% HAVE A BACHELOR’S DEGREE OR HIGHER

Generation Z (2%) Source: 2019 5-year American Community Survey

As the pandemic pushes people to consider where and how they live, many are choosing to relocate to Austin.

Downtown Austin has a staggering 52% of apartments underway as a percent inventory—more than any other market in the country. This is an indicator of pre-pandemic demand.

DOWNTOWN RESIDENTIAL DEVELOPMENT PIPELINE TREND (total units) 3,972

2,411

551

581

844

Proposed / In Planning 3,037

4,000

Under Construction 2,855

4,500

2,456

Delivered 2015-2020 1,567

26

DOWNTOWN AUSTIN ALLIANCE

3,500 3,000 2,500 2,000 1,500 1,000 500 0

Apartments

Condos

Total Residential

Source: CoStar (Apartment Data), Downtown Austin Alliance Emerging Projects Database (Proposed / In Planning)

STATE OF DOWNTOWN AUSTIN 2021

Over the course of 2020, Austin’s for-sale housing

expanding for years as more people choose a

market heated up citywide. However, while prices

walkable urban lifestyle. Developers have responded

increased downtown, the area did not experience

to increased demand, adding 1,386 condos since

this same surge in demand. Downtown successfully

2010, leading to a steady flow of both new deliveries

absorbed two new developments, 70 Rainey and The

and absorption. Values have grown for years as

Independent, which added 543 units to our relatively

demand has continued to outpace the available

small market of roughly 5,000 condos. At the higher

supply. In 2018, the average cost per square foot was

end of the market, in 2020 the Independent recorded

$547. By the end of 2020, the cost had grown 17% to

32 sales averaging $842 per square foot, and 70 Rainey

$640 per square foot.

recorded 25 sales averaging $811 per square foot,

27

Downtown Austin’s condo market has been

according to a recent Towers.net analysis.

DOWNTOWN ACTIVE LISTINGS & MONTHS OF INVENTORY Months of Inventory

Active Listings

Months of Inventory

Active Listings

250

12 10

200

8

150

6 100

4

50

2 0

2018 Q1

2018 Q2

2018 Q3

2018 Q4

2019 Q1

2019 Q2

2019 Q3

2019 Q4

2020 Q1

2020 Q2

2020 Q3

2020 Q4

0

Source: ABOR

DOWNTOWN RESIDENTIAL SALES & INVENTORY DOWNTOWN 2020 Q4

AUSTIN MSA DECEMBER 2020

Active Listings

183

1,954

Closed Sales

81

3,626

Months of Inventory

8.2

0.6

Median Closed Price

$630,000

$370,000

Average Price per Sq. Ft.

$640

$228

Median Price per Sq. Ft.

$627

$187 Source: ABOR, Texas A&M Texas Real Estate Research Center

28

DOWNTOWN AUSTIN ALLIANCE

ERIKA RICH PHOTO

RETAIL & SMALL BUSINESS

PRE-PANDEMIC RETAIL MIX IN DOWNTOWN Drinks & Entertainment Retail Goods

Retail Services

Food Places

100% 90% 80%

40%

70% 60% 50%

18%

40% 30%

17%

20% 10% 0%

25%

Retailers, restaurants and our entertainment oriented small businesses suffered as demand downtown disappeared.

Downtown’s role as the city’s most

number of people who came

vibrant and welcoming gathering

downtown every day. While

place is anchored by our small,

downtown residents remained

locally owned businesses. The

in place, the absence of others

pandemic has reversed what was

significantly reduced the customer

otherwise a very strong retail market.

base for the 700+ restaurants, bars,

In 2019, downtown Austin’s retail

live music venues and service-

occupancy rate stood at 97.5%

oriented businesses downtown. For

according to CBRE. Both new and

example, downtown’s food trucks,

longtime businesses were thriving

restaurants and cafes that serve

as demand from office employees,

the workforce suffered when an

day trippers and local residents

estimated 60% of these 100,000

increased steadily.

employees instead worked from

Retail businesses lost a significant portion of their user base.

The pandemic and stay-at-home orders significantly reduced the

home. The sharp decrease in pedestrian activity along Congress Avenue in March and April, when restaurants, bars and retailers were ordered to close, highlights this impact.

STATE OF DOWNTOWN AUSTIN 2021

29

The steep decline in pedestrian activity along Congress Avenue and alcohol sales at bars and restaurants highlight the severe loss downtown storefront businesses are experiencing.

AVERAGE DAILY PEDESTRIAN COUNT ON CONGRESS AVENUE BY MONTH 25K

20K

15K

10K

5K

0

Apr May Jun 2019

Jul

Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 2020

Jul

Aug Sep Oct Nov Dec Jan Feb 2021 Source: EcoCounter

PERCENT CHANGE IN MIXED BEVERAGE GROSS TAX RECEIPTS (year over year) Downtown

Citywide

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

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Source: State of Texas Comptroller, 2020

30

DOWNTOWN AUSTIN ALLIANCE

An estimated half of downtown storefront businesses

restaurants and venues have shown extraordinary

reopened throughout the summer of 2020 after

creativity and resilience during a time of unprecedented

Governor Abbot lifted public health orders, allowing

economic uncertainty. For example, over the 2021 Super

businesses to open at limited capacity. As the vaccine

Bowl weekend, some restaurants and bars opened to

rollout continues and more public health restrictions

offer outdoor game-watching venues. The restaurant

are lifted, additional businesses have reopened. A

and retail economy will begin its recovery in earnest

February 2021 census of downtown retail storefronts

once more office workers come back to their desks and

found that 63% had reopened their doors; however,

hotels begin to fill up with tourists.

12% had permanently closed. Many businesses that or permanently as companies’ return-to-office plans are still in flux.

In the Rainey Street District, 75% of all businesses were operating in February, compared to 25% in the Red River Cultural District and 55% on East Sixth Street. Retailers,

Retailers, restaurants and venues have shown extraordinary creativity and resilience during a time of unprecedented uncertainty.

ERIKA RICH PHOTO

cater to office workers have closed either temporarily

STATE OF DOWNTOWN AUSTIN 2021

31

Now that restrictions are lifted and people are receiving vaccinations, the future for downtown retail is promising.

PERCENT OF DOWNTOWN STOREFRONT BUSINESSES OPERATING Operating

Temporarily Closed

Permanently Closed

100% 90%

11% 12%

25%

80%

3%

70%

As of February 7, 2021, more businesses had shifted from temporary to full operations. As a percent share of their downtown footprint, retail goods and services have more of their locations operating.

Bars, entertainment and performance venues have the largest share of closed locations.

15%

23%

60%

Status Unknown

50% 40% 30%

63%

49%

20% 10% 0%

July 26, 2020

February 7, 2021 Source: Downtown Austin Alliance Retail Inventory

PERCENT OF DOWNTOWN STOREFRONT BUSINESSES OPERATING BY TYPE Operating

Temporarily Closed

47%

Drinks & Entertainment

Permanently Closed

63%

Food Places

Status Unknown

69%

Retail Goods

78%

Retail Services

Source: Downtown Austin Alliance Retail Inventory, February 2021

32

DOWNTOWN AUSTIN ALLIANCE

HOTELS & TOURISM

Public health restrictions had a huge impact on tourism, but demand will return as the pandemic recedes.

Prior to the pandemic, the Austin

restrictions have severely curtailed

hospitality sector was on track to

leisure, business, and convention

welcome more visitors, take in more

travel. According to Visit Austin, in

hotel occupancy tax, and employ

2020, downtown hotels’ revenue

more people than ever. On March

per available room decreased

6, 2020, downtown was just a few

70% year-over-year as occupancy

days away from hosting the annual

plummeted at the onset of the

SXSW Conference & Festivals when

pandemic and average daily room

the local disaster declaration was

rates fell. Astonishingly, in April

announced and the event was

2020, downtown hotel occupancy

canceled, dealing a devasting

fell below 5%.

blow to the downtown economy.

According to an analysis by Greyhill Advisors, the loss of SXSW resulted in $34 million in lost hotel revenue, or 58,000 room nights, and $355.9 million in lost economic impact for the city as a whole.

While the pandemic has affected all industries, perhaps none has been as severely impacted as the hotel industry. Public health

While the pandemic has affected all industries, perhaps none has been as severely impacted as the hotel industry.

STATE OF DOWNTOWN AUSTIN 2021

MONTHLY HOTEL ROOM OCCUPANCY RATE Citywide Occupancy

Downtown Occupancy

THE INGALLS

90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

Jan 2019

Apr

Jul

Oct

Jan 2020

Apr

Jul

Oct

Jan 2021

Mar

Source: Visit Austin, STR

DOWNTOWN REVENUE PER AVAILABLE ROOM $200

February 2020 $178.39

$180 $160 $140 $120 $100 $80 $60

WHITE LODGING

$40

February 2021 $35.02

$20 $0

Jan 2015

Jul 2015

Jan 2016

Jul 2016

Jan 2017

Jul 2017

Jan 2018

Jul 2018

Jan 2019

Jul 2019

Jan 2020

Jul 2020

Jan 2021

Source: Visit Austin, STR

33

Hotel occupancy in downtown has begun to recover from the pandemic, reaching 39% in March, but still lags behind the city at 48%.

34

DOWNTOWN AUSTIN ALLIANCE

Tourism demand will return as the pandemic

Street at Sixth Street. After a slight delay, the 613-

recedes, although it will not return all at once.

room Austin Marriott Downtown opened on Cesar

Leisure travelers visiting Austin via car are expected

Chavez Street, providing even more supply to our

to return before those flying in from out of state.

expanding market.

Downtown Austin will continue to be an attractive travelers. As a result, hotel development has not shown any indication of slowing down. Several new site plans were filed in 2020, including a new 344-room hotel development along Colorado

Downtown Austin will continue to be an attractive destination for conventiongoers and leisure travelers.

WHITE LODGING

destination for convention-goers and leisure

STATE OF DOWNTOWN AUSTIN 2021

35

Downtown hotel occupancy tax receipts, which provide essential support to the cultural institutions that drive our tourism industry, decreased 69% in 2020.

TOTAL DOWNTOWN HOTEL OCCUPANCY TAX RECEIPTS 2019

2020

Year Over Year % Change

Total Taxable Receipts

YOY % Change

20%

80M 70M

0%

60M -20%

50M

-40%

40M 30M

-60%

20M -80%

10M 0

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

-100%

Source: State of Texas Comptroller

MONTHLY AIRPORT PASSENGERS AT AUSTIN-BERGSTROM INTERNATIONAL AIRPORT 2019

2020

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: Austin-Bergstrom International Airport

36

DOWNTOWN AUSTIN ALLIANCE

DOWNTOWN DEVELOPMENT THE RE-EMERGENCE SEEDS OPPORTUNITY Over the last decade, the southwestern corner of

tallest building and the tallest residential tower

downtown experienced a construction explosion.

west of the Mississippi. Meanwhile, in the southern

Its publicly owned master planned developments

and eastern portions of downtown, several

like Seaholm and Green Water produced new

additional projects are coming to the forefront.

investment in mixed-use high-rise buildings,

Now they are generating new density, new

streetscapes and public spaces. Other notable

amenities and the promise of new, authentic

projects included the award-winning Central

districts and complete neighborhoods that will

Library and The Independent, which is Austin’s

define downtown during the next decade.

A notable trend is emerging. The potential developments highlighted to the right in teal either have been announced, have plans on file with the city, or are under construction. They will rise above 420 feet and are known as super high-rise buildings. Downtown is already home to a handful of these towers, such as the Frost Bank Tower, the 360 Condominiums, the Austonian and The Independent. These tall buildings have reshaped Austin’s skyline, creating a new east-west orientation. And if the market allows, many more could be coming.

DEVELOPMENT PIPELINE PIPELINE STATUS

# OF PROJECTS

RESIDENTIAL UNITS

OFFICE SF

HOTEL ROOMS

Recently Completed

3

—

—

1,099

Under Construction

28

3,691

5,136,691

960

Proposed & In Planning

32

3,724

5,590,686

2,195

Source: Downtown Austin Alliance Emerging Projects Database, as of April 2021

6X Guadalupe

STATE OF DOWNTOWN AUSTIN 2021

37

The Independent BBVA Bank Tower The Republic Indeed Tower

Hanover Republic Square 5th & Colorado Block 185 Block 16

92-98 Red River

90-92 Rainey

80 Red River

Austin American-Statesman Site

River Street Residences

44 East

Capitol Complex

The Moody Center

38 38

Innovation District Central Health Property Redevelopment Waterloo Park

Health South Redevelopment

Plaza Saltillo

STATE OF DOWNTOWN AUSTIN 2021

39

DOWNTOWN IS RESILIENT: KEYS TO RECOVERY

Innovation District / Austin’s one-of-a-kind

Waterloo Park / Construction of the highly

in downtown’s northeastern corner. Slated to

The park features 11 acres primed for concerts,

bring in 2,800 new permanent jobs and $800

performing arts shows, food trucks, field trips and

million in economic output, the Innovation

more. It is part of the planned 1.5-mile Waterloo

District is well-positioned to be a hub of health

Greenway park system that will extend along

innovation at the center of a diversified and

Waller Creek from 15th Street to Lady Bird Lake.

Innovation District has begun to take shape

anticipated Waterloo Park is now complete.

regional economy.

Convention Center / In 2019, the Austin City

Capitol Complex / Construction is underway on the Capitol Complex project, which will include

Council approved a $12 billion plan to expand

two new state office buildings, the Texas Mall and

the Austin Convention Center. Added capacity

a new utilities plant. The Texas Mall will centralize

will drive the continued growth of downtown’s

state agencies and serve as a northern gateway

tourism economy as well as business opportunities

into downtown, with public green space for

throughout Central Texas.

tourism, events and festivals.

Plaza Saltillo / The recently completed 10-acre

Central Health Property Redevelopment /

stores Whole Foods and Target, while adding 800

blocks of redevelopment, creating a unique

apartments and 150,000 SF of office space to the

opportunity to both advance the Innovation

edge of downtown.

District and provide our local community health

district has over 100,000 SF of retail, including

Demolition is underway on the remaining five

care provider with mission-critical funds.

The Moody Center / This multi-use arena is

currently under construction on The University of Texas at Austin campus. The $338 million

HealthSouth Redevelopment / The city is

negotiating a redevelopment agreement that will

venue will be the home of Texas Men’s and

result in a dense, mixed-use design that provides

Women’s Basketball and will host university, high

public amenities and community benefits.

school and community events as well as touring concerts and shows.

*Projects highlighted were completed in recent years, are under construction or are in planning.

40

MOBILITY Everyday travel within Austin and downtown looked much different in 2020 than in previous years. Prior to the pandemic, the city’s arterials and

2020 /// By the Numbers ///

DOWNTOWN AUSTIN ALLIANCE

corridors were packed with vehicles commuting into downtown and its surrounding neighborhoods and campuses. Public health restrictions limited much of this activity in the first part of 2020, but traffic had nearly recovered to pre-pandemic levels toward the end of the year. Despite the pandemic’s impacts on travel and commuter behavior, in November 2020 the Austin community

DOWNTOWN TRANSIT RIDERSHIP

1.9M

(ANNUAL RIDERS)

voted for a $7.1 billion transit initiative, Project Connect, which will add two light rail lines, another commuter rail line, additional rapid bus service and more. This speaks to the optimism and continued market demand the region anticipates well into the future. As Austin recovers from the pandemic, these transformational investments in downtown make the case

DAILY AVERAGE VEHICLE TRAVEL

100K

(WEEKDAY TRIPS ENDING DOWNTOWN)

for continued vibrancy and relevancy in decades to come. Downtown is at the center of these major infrastructure improvements, maintaining its position as the central business, civic, and cultural district of the city.

NOTABLE ACHIEVEMENTS IMPACTING DOWNTOWN MOBILITY People for Bikes’ list of America’s Best

Bikeways of 2020 / The addition of 1.3 miles of protected bike lanes along Congress Avenue between 11th Street and Riverside Drive was recognized among 11 outstanding projects across

MICROMOBILITY RIDERSHIP

1.4M

(CITYWIDE TOTAL TRIPS)

WALK SCORE

99

the country.

Passport + Google Partnership / The City of

Austin is the first city in the United States where customers have the option to use the Google Maps application to pay for street parking.

MetroBike Launch / The City of Austin and Capital Metro partnered to manage Austin’s

BCycle bikes. Improvements include rebranding to MetroBike, seamless transactions through the Capital Metro app and full electrification.

TRANSIT SCORE

73

BIKE SCORE

92

STATE OF DOWNTOWN AUSTIN 2021

41

BILLIONS INVESTED IN MOBILITY Project Connect / Austin Voters approved this $7.1 billion transit initiative, which will enable

equitable mobility by creating a system of highcapacity transit options that will connect people to downtown’s amazing places and abundant opportunities. The system includes two light-rail lines that will run through a downtown tunnel, connecting people from North and South Austin, as well as the airport. As many 95,000 riders per day are expected on these two routes by 2040.

Interstate Highway 35 / The Texas

Transportation Commission is set to fund the $7.5 billion reconstruction of I-35. With the purpose of improving safety and congestion, the I-35 Capital Express Project plans to add two non-tolled managed lanes in each direction of the highway, reconstruct intersections and bridges, and improve bicycle and pedestrian accommodations along the frontage roads.

Capital Metro Downtown Station / Opened in 2020, Capital Metro’s newly improved Downtown Station welcomes MetroRail passengers to downtown businesses, hotels, and the Convention Center. It also connects them with MetroBus, MetroBike and other modes of transportation. Overall, the $2.1 million project helps keep cars off the roads by providing better and more reliable transit options.

The Austin metro area population surpassed 2 million in 2015. Between 2010 and 2019, Austin’s MSA has grown by 30%. Austin continues to be

ATELIER WONG PHOTOGRAPHY

one of the fastest-growing cities in the country.

42

DOWNTOWN DOWNTOWN AUSTIN AUSTIN ALLIANCE ALLIANCE

PARKS & PUBLIC SPACE CLEAN, GREEN, & WELCOMING Downtown Austin is filled with green spaces that offer a variety of experiences for people all across the city. Twenty percent of downtown’s land area is dedicated to parks and open space.

Parks and open space are especially important during a time of heightened stress brought on by the pandemic. With stay-at-home orders in place for more than a year, taking a walk or run on downtown’s 15.4 miles of trails proved to be especially important to many Austinites’ social, physical and mental well-being. Most downtown residents and employees are within a five-minute walk of a downtown park or plaza.

e pandemic has “Living in downtown Austin during th ts, I am grateful been a real gift. Like many residen ly enjoy the to be able to get outside and safe paces. Among area’s beautiful walkways and greens ught us that one many things, this past year has ta d, and I am so best not take too much for grante place.” thankful to be living in this special tion -F. Xavier Peña, St. David's Founda

STATE OF DOWNTOWN AUSTIN 2021

43

SPOTLIGHTING A FEW OF DOWNTOWN’S PUBLIC SPACE AMENITIES: • Downtown Ambassadors are stewards for

downtown, providing locals and visitors with information, assistance and local insider tips. They also work all day, every day to keep downtown and its parks clean and beautiful.

The Ambassador program is funded and

MICHAEL KNOX, DOWNTOWN AUSTIN ALLIANCE, ERIKA RICH PHOTO, TOMEK BAGINSKI, SHOAL CREEK CONSERVANCY (right side, top to bottom) THOMAS PHIFER AND PARTNERS (Rendering of Moody Ampitheater at Waterloo Park, far left)

managed by the Downtown Austin Alliance.

• A reimagined Waterloo Park will open in

Summer 2021 as the first phase of Waterloo Greenway, which will eventually line downtown’s eastern edge with 35 acres of connected green spaces, pathways and gardens—amplifying the best of downtown’s natural and cultural assets.

• Downtown is home to three historic

squares: Republic, Wooldridge and Brush.

Each square has a unique history and identity, and together they welcome thousands of visitors annually.

• Salt & Time Café, Republic Square’s newest all-day café opened this year and offers

a unique outdoor dining experience for the square’s visitors and the downtown community.

• Lady Bird Lake and Butler Trail receives

more than 2.6 million visits a year, making the 10-mile trail Austin’s most recognized and popular recreational area.

• Shoal Creek is an 11-mile creek flowing

through the heart of Austin, TX. The Shoal Creek Trail, Austin’s oldest trail, remains an invaluable greenway embedded in our quickly changing urban landscape, providing a pathway for cyclists, walkers and runners.

From its hot job & real estate markets to the active lifestyle of its residents, Austin is a great place to be right now.

AUSTIN HAS THE #1 JOB MARKET IN THE U.S. FOR SECOND YEAR IN A ROW Wall Street Journal, February 2020

AUSTIN RANKS #3 IN BEST PLACES TO LIVE FOR 2020-2021 U.S. News & World Report, October 2020

44

AUSTIN IS THE #1 DESTINATION CITY FOR RELOCATING HOUSEHOLDS AND #3 DESTINATION CITY FOR CORPORATE MOVES IN 2020 Allied Van Lines, January 2021

AUSTIN RANKS #2 IN REAL ESTATE MARKET FOR 2021 PwC/Urban Land Institute, October 2020

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

AUSTIN RANKS #5 AMONG MOST RECESSION-RESISTANT CITIES SmartAsset, March 2020

45

46

DOWNTOWN AUSTIN ALLIANCE

STATE OF DOWNTOWN AUSTIN 2021

47

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

Erica Hess, Copy Editor, Plume

DOWNTOWN AUSTIN ALLIANCE TEAM Dewitt Peart President and CEO Julie Fitch Chief Operating Officer Samia Burns Controller Pam Power VP, Marketing and Communication Bill Brice VP, Investor Relations Michele Van Hyfte VP, Urban Design Melissa Barry VP, Planning

Molly Alexander Executive Director, Downtown Austin Alliance Foundation Jenell Moffett Director of Research & Analysis Mandi Thomas Director of Strategic Partnerships Matt Macioge Director of Operations Gabriel Schumacher Research Analyst

Amalia Carmona Project Coordinator Vanessa Olson Director of Investor Relations Vanessa Zhou Accounting Coordinator Nicole Basham Digital Content Manager Angie Tubbs Executive Assistant

Emily Risinger Planning and Urban Design Manager

RESEARCH TASK FORCE Photo (left): ERIKA GONZALES Cover photo: RYAN CONWAY Photos on pages 44-45 (left to right from top down): ERIKA RICH PHOTO RYAN CONWAY JTYPE ERIKA RICH PHOTO ERIKA RICH PHOTO ERIKA RICH PHOTO DOWNTOWN AUSTIN ALLIANCE ERIKA RICH PHOTO ERIKA RICH PHOTO PARAMOUNT THEATRE ERIKA RICH PHOTO RYAN CONWAY @ISLANDGIRL_GYPSY DOWNTOWN AUSTIN ALLIANCE

Christine Cramer Visit Austin

Beverly Kerr Austin Chamber of Commerce

Charles Heimsath Capitol Market Research

Cole Kitten Austin Transportation Department

Mike Kennedy MK Interests

Margaret Shaw City of Austin Economic Development Department Sam Tenenbaum CoStar Group

Jon Rees EY

ACKNOWLEDGEMENTS Austin Transit Partnership

Jim Ritts

Ryan Garrett, Stubbs

Capital Metro

Movability

City of Austin Smart Mobility

Nelson\Nygaard

Texas Transportation Commission

Greyhill Advisors

Paramount Theater

48

DOWNTOWN AUSTIN ALLIANCE

DOWNTOWNAUSTIN.COM