As downtown sees slowing of development, new programs aim to promote activity

In delivering its annual State of Downtown report that showed some slowdown in development efforts in the central business district, the Downtown Austin Alliance announced two new efforts intended to improve quality of life and bring more activity throughout the downtown area.

The announcements were part of the group’s Future of Downtown event held Wednesday, which included an award ceremony for groups and individuals recognized by DAA for their contributions to downtown character and impact. Following an introduction from Mayor Kirk Watson, CEO Dewitt Peart shared that the DAA has created the Downtown Austin Space Activation program that will let local businesses and creatives activate underutilized commercial and other space downtown including vacant storefronts, plazas, alleyways and other areas.

Peart said the program is intended to bring more arts and music culture into the city core amid an affordability crisis that is threatening small businesses and individual creatives throughout the city.

“The very culture that has drawn people to our city is now under threat due to challenges with affordability. In short, what brought people here in the first place is putting at risk what makes us special,” he said. “​​For downtown to thrive, its prosperity must be shared by everyone, especially those who laid the foundation for our city’s cultural richness. We believe vacant spaces, when activated, can provide economic, social and cultural benefits for everyone. By supporting diverse communities in downtown, downtown itself sustains its vibrancy.”

Peart also announced DAA will commit another $2.4 million to its ambassadors program that provides cleaning and safety services throughout the area and also helps to connect those experiencing homelessness to social services and other assistance. The extra money will allow the program to expand to 90 full-time employees who will provide 24-hour service.

Among the data included in the latest report:

• More than 40 new developments were completed over the past three years, adding 13.7 million square feet of commercial, residential and other space.
• Last year, 11 projects were delivered accounting for 3.85 million square feet, with 16 projects under construction – totaling 7.1 million square feet.
• The makeup of those projects were 22 percent office space, 38 percent mixed-use and 40 percent residential.
• Office vacancy rates increased slightly to 18 percent last year, while downtown employment has increased by 21 percent overall since mid-2020.

Peart said the slight slowdown in development activity will give residents and businesses in the area a chance to look at how to improve downtown as major projects such as the reconstruction of Interstate 35 and the Project Connect mass transit system bring major disruptions and opportunities.

“Like many downtowns nationwide, we’re confronting economic challenges, rising interest rates and inflation. Social challenges are all casting a shadow of uncertainty over our future, as many downtowns are feeling the same challenges,” he said. “As we navigate this market correction, we can’t afford to be complacent. We must actively work to draw more people downtown, countering the impact of remote work and reduced consumer spending. … We need a plan to ensure downtown’s resiliency during the next decade of these large public work projects.”

In looking at the impact of past efforts such as the Second Street retail district and the ongoing Waterloo Greenway public spaces district, Watson said the city needs to work to make downtown Austin as inclusive and coordinated as possible.

“Those major transformations highlight what downtown does best, in my mind, and that is it brings people together. Downtown Austin is where people from all over Central Texas and the world come to share ideas, do business, have fun. It is the living room of our entire community,” he said. “Some of the indicators aren’t as strong as we’ve seen them in the past decade, but that’s OK. We expect those types of fluctuations in such a vibrant, lively place. Downtown is one of the economic generators for our city. Having a healthy downtown is absolutely crucial to our success. As we confront what are going to be inevitable headwinds due to local and global challenges, we need to come together as leaders, partners and community members to plan a resilient and an inclusive future.”

Photo made available through a Creative Commons license.

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Posted In: Austin, District 9