Item #3 Presentation: State of the Downtown (backup) — original pdf

Backup

DOWNTOWN AUSTIN UPDATE PHOTO: MICHAEL KNOX COVID-19 Crisis Management Framework Downtown Alliance Response to COVID-19 Downtownaustin.com/covid-19 Downtown Alliance Response to COVID-19 Clean & Safe • Downtown Ambassadors: Activation • Republic Square: • Performed enhanced cleaning to • Partnered to produce PARKSPACE, a reduce infection spread • Staffed handwashing stations • Distributed water during summer • Assisted with welfare checks • Protest preparation and clean-up, graffiti and debris removal • Working with law enforcement and homelessness outreach teams on public safety issues social distance art installation, • Conducted Cinco de Mayo and Austin’s Birthday Bash online • Supported Salt & Time Café Opening • Hosting Fall Fitness Series of Classes • Partnered with Blue Starlite Mini Urban Drive-In Theater to produce parking garage roof-top drive-in movies • Preparing for Holiday Market and Shop- the-Block Downtown Alliance Response to COVID-19 Research • Conducted Downtown Austin Retail and Small Business Survey • Created Economic Recovery Index: economic indicators to track recovery • Conducted downtown office market survey • Hosted conversations with guest researchers from other downtowns and city centers • Tracking a series of measures including first floor retail operating status, mobility trends, public safety, and downtown development Outreach and Communications • Created a frequently updated COVID-19 section on website • Restructured annual Future of Downtown event to a video format which aired on KXAN and KVUE • Conducted a 6-week “Come Back Downtown” marketing campaign with giveaways supporting downtown small businesses • Promoted "City of Us" wear a mask campaign Downtown Alliance Response to COVID-19 Advocacy • Federal Save our Stages Act’s support for live music venues Participating in Local Efforts • Opening Central Texas Task Force led by Mayor Adler and Judge Eckhardt • Advancement of the Music Venue • City Economic Department’s Recovery Efforts: Cross-Sector Focus Group • AARO’s Regional Resilience Effort • Collaborating with other non-profits Preservation Fund • Downtown public health and safety concerns • Near-term Recommendations and Priorities for City's COVID-19 Spending Framework for CARES Act, FEMA and city funding sources • Safe opening best practices, expanding businesses outdoors (Shop the Block Program) Downtown Alliance Response to COVID-19 Unique Challenges for Downtowns and Urban Centers • Downtown is a major tourism destination. Its businesses rely much more heavily on tourism than businesses in other parts of the city. • Downtown is the region’s largest employment center. Its businesses are also very reliant on the employees that spend their weekdays in downtown. • Until employees return and tourism increases, businesses downtown will continue to struggle...unless, of course, we can draw from locals in the Austin area. • Critical efforts to help retailers and storefronts survive: 1) market the businesses that are open and help them generate revenue and 2) determine more resilient retail mixes downtown and increased opportunities for locals to engage in downtown,....more days of the week and more hours of the day. Economic Recovery Index COVID-19 Impact on Downtown Austin – Retail Congress Avenue Foot Traffic is down 80%. COVID-19 Impact on Downtown Austin – Tourism Downtown Hotel Room Occupancy is down 78%. Air Travel is down 75%. Source: Visit Austin, State of Texas, ABIA COVID-19 Impact on Downtown Austin – Office Market • Office tenants are continuing to pay rent although most employees are working from home. • Workforce return could take place as early as next Spring, dependent on a number of factors. Downtown Office Daily Asking Rent is holding steady. Downtown Office Daily Occupancy Rate is dropping. Source: CoStar, JobsEQ COVID-19 Impact on Downtown Austin – Residential Market • Most recent data suggests that 90%+ of rents are being collected, but, many are not renewing their lease. • Suburban markets are doing disproportionately well. Downtown rental asking rates declined by 8%. Downtown apartment occupancy rates have dropped 5% in the last quarter. Source: CoStar COVID-19 Impact on Downtown Austin – Mobility • Mobility has picked up in the downtown core. • Comparatively speaking, travel across the city and in downtown has increased. System wide transit ridership is down 40%. Daily vehicle travel volumes are down 42%. Source: Streetlight Data, City of Austin, Capital Metro COVID-19 Impact on Downtown Austin - Development Downtown Development continues during the pandemic. Our records indicate only one project has been cancelled. Many have emerged or resurfaced. •5 projects have been delivered so far this year: 3 hotels adding over 1,300 hotel rooms, one residential tower – The Austin Proper, and the final elements of the mixed-use property at Plaza Saltillo. •12 large scale mixed-use office towers along Congress Avenue and Colorado Street, 8 residential towers, mostly apartments, and 2 hotels are under construction: this will add more than 5 Million SQFT to the skyline. •16 new projects have been proposed or have recently resurfaced, including a cluster of office buildings just west of the Capitol Complex and several hotels and mixed-use projects in the Rainey district. Source: Downtown Austin Alliance Emerging Projects Database Downtown Emerging Projects Map Downtown Development Trends to Watch Work at Office vs. Work from Home • Construction continues as a result of • Expect a slowing of construction strong pre-pandemic economy. • Leasing activity nationwide ground to a halt when the pandemic began in March, dropping below activity levels during the Great Recession. • There has been a rapid increase in subleasing. • Work-from-home debate could impact central business districts nationally – opinions are split. • Retailer and Storefront impact – loss of iconic businesses activity in 2021. The next wave of projects, scheduled for Q4 2020 - Q3 2021, is problematic. • Will the office market downtown absorb the record amount of office space scheduled to deliver in the next year? • When will leasing activity in downtown rebound and return to pre-COVID-19 levels? • How will the sublease market evolve as all of this unfolds? Downtown Recovery Roadmap • Recovery = Downtown Vision • Resiliency • Vitality Downtown Recovery Roadmap A flexible and dynamic roadmap for downtown’s recovery and resiliency • Sets shared expectations for recovery that align with the Downtown • Informs priorities for our next fiscal year (service plan, work plans, • Seeks perspectives from a variety of stakeholders, experts, and Vision budget) community leaders • Focus groups • Interviews • Surveys Recovery Roadmap Process: Overview Oct Nov Dec Jan Feb Mar April May June July Aug Sept Oct Nov Dec Discovery Vision for Recovery Creating the Roadmap Realignment Action and Implementation Reauthorization Planning Reauthorization Petitioning Starts Recovery: What We’re Hearing Transportation and Mobility Retail Residential market Tourism Market Clean and Safe Homelessness Office Market Complete Neighborhoods Downtown for Everyone The Public Realm Cultural Arts and Live Music DOWNTOWN AUSTIN IS UNIQUE …. BUT! DOWNTOWN AUSTIN’S RESOURCES https://downtownaustin.com/ Thank You Michele Van Hyfte, AIA LEED AP – Vice President, Urban Design Jenell Moffett, MBA – Director of Research & Analysis Contact us at daa@downtownaustin.com