1 STATE OF DOWNTOWN AUSTIN 2020
STATE of DOWN TOWN AUSTIN 2020
2 DOWNTOWN AUSTIN ALLIANCE
3 STATE OF DOWNTOWN AUSTIN 2020
LETTER FROM THE CEO We are pleased to share the 2020 State of Downtown Report,
Although downtown’s growth has created exceptional market
which presents the latest data on downtown's economic
strength, demand has also exposed challenges – especially in
sectors as well as the plans shaping its future.
the areas of mobility and equity.
It is important to note that we compiled this data in January
Among large U.S. cities, Austin has the third-highest number of
and February 2020, just before the COVID-19 pandemic
commuter hours in traffic. The section of I-35 running through
led Austin to cancel SXSW and other gatherings, close
downtown is extremely congested, and central Austin has
schools and issue Stay at Home – Work Safe orders. It is too
little room for new roads or road capacity. We hope the trend
early to predict or measure the effects this will have on our
of increased teleworking continues long after the COVID-19
community’s health and our local economy. Austin was one
outbreak is contained. We have two other prime opportunities
of the most resilient metro areas during the 2008 financial
to reduce our dependency on single-occupancy vehicles:
crisis, but our current situation is unprecedented for us all.
Project Connect’s proposed multimodal, central city transit network and the lowering and capping of I-35 through
We produce this report annually as a tool for decision-making.
downtown. These will both need public investment and support.
This year, it is a baseline for where we were at the beginning of 2020 – and a benchmark for where we hope to return as
An increasing number of our fellow Austin residents are
soon and as safely as possible.
experiencing homelessness. Like in other major cities, downtown has the greatest concentration of people
We entered this decade in a position of incredible strength,
experiencing homelessness. Our city has fewer than 800
with growth in nearly every category of our urban core. The
shelter beds, and on any given night, over 1,100 people are
culture, innovation and tax revenue generated downtown have
without a roof over their heads. Addressing this issue
far reaching benefits across Austin and Central Texas. And they
requires an actionable plan, improved public policy, and
contribute to Austin’s continued drumbeat of awards such as
new initiatives such as ATX Helps.
“Best Place to Live” (U.S. News and World Report) and “No. 1 City for Real Estate Prospects” (Urban Land Institute).
Our downtown community is collaborating on long-term plans that not only address the challenges of growth but also
2019 was another record-setting year for office construction
proactively create thriving neighborhoods. From creating
downtown. Companies such as Facebook and Google
an urban greenbelt to rewriting our city’s land development
anchored new buildings. The state government began
code for the first time in 30 years, these moves will shape
revitalizing the area around the Texas Capitol Complex.
downtown for decades to come.
An emerging Innovation District is bringing together the health care, life sciences and technology industries.
We invite you to learn more and to join us in re-capturing the downtown we will always love.
Downtown is also a popular place to live, with more than 15,000 residents. And downtown hotel capacity doubled between 2010 and 2019 to accommodate the increase in visitors for conventions, SXSW, ACL Fest, Longhorn Football and everyday getaways.
DEWITT PEART President and CEO Downtown Austin Alliance
Dewitt Peart
4
8
MARKET STRENGTH
10
SAYAKA KUNZE
CONTENTS
DOWNTOWN AUSTIN ALLIANCE
10 Aerial view of downtown from the east
DOWNTOWN DEVELOPMENT
The story behind our changing our skyline
12 OFFICE MARKET Why the downtown Austin office market attracts top companies
14 HOTEL MARKET A look at hotel market performance and potential
16 HOUSING MARKET How residential development is shaping and growing downtown’s neighborhoods
18 RETAIL MARKET A look at Austin’s retail districts and the development pipeline
16 View of residential towers at sunset
5
22
RESIDENTS
Learn about downtown's population growth, Austin's affordability crisis and efforts to solve homelessness
24 WORKFORCE An overview of downtown employment trends and demographics
26 TALENT Explore Austin’s Innovation District and talent pool
28 VISITORS View tourism highlights and plans for the Austin Convention Center
30 CONNECTING DOWNTOWN MICHAEL KNOX
A look at downtown mobility options and efforts to shift commute modes
28
38
36
m e a n d e r by frankev, Creek Show 2019
LOOKING AHEAD
ROGER HO
Visitors and locals alike watching the bats take flight from underneath Congress Avenue bridge
JTYPE
20
OPPORTUNITIES & CHALLENGES
STATE OF DOWNTOWN AUSTIN 2020
38
PUBLIC SPACE
From Congress Avenue to the Waterloo Greenway, how downtown’s spaces are shaping the future
40
SHAPING THE FUTURE OF DOWNTOWN
Transformative plans and initiatives impacting the future of downtown
6 DOWNTOWN AUSTIN ALLIANCE
STATE OF DOWNTOWN
As we embark on a new decade, downtown is in a
state of explosive growth and exciting opportunity. Austin is one of the fastest-growing cities and among the most desirable places to live in the U.S. Downtown Austin is the economic, governmental and cultural center of both Austin and all of Central Texas. This is a critical role. Downtown Austin's growth continues to drive opportunities for innovation, collaboration, recreation, arts and culture that benefit the entire region. At the same time, this growth has amplified affordability and mobility challenges.
Martin Luther King Jr. Blvd.
Many large-scale projects, such as the new Central Library and Dell Seton Medical Center at The University of Texas, have transformed downtown over the past decade to better Lamar Blv d.
serve Austin's growing population. This trend continued in 2019 with significant investments I-35
in new buildings, parks and green spaces; a new vision for the Austin Convention Center; and an emerging Innovation District. We must thoughtfully plan for all aspects of downtown’s growth to keep the area prosperous and vital through 2030 and beyond. Lady Bird Lake
VISION & STRATEGIC PRIORITIES
The Downtown Austin Vision is a guide for shaping downtown in a way that supports our community’s values and aspirations. It is used by the Downtown Austin Alliance as well as by other
DOWNTOWN BOUNDARIES Downtown Austin Downtown Austin Public Improvement District
community leaders and citizens. The Downtown Alliance engaged more than 3,000 residents in developing the Downtown Vision. Together we identified four strategic priorities — Thriving Center, Welcoming Places, Growing Neighborhoods and Leading Mobility — that work together to create and sustain the
Map: Downtown Boundaries Downtown Austin is generally defined as the 1,100-acre area bordered by Martin Luther King Jr. Boulevard, I-35, Lady Bird Lake and Lamar Boulevard. Downtown Austin Public Improvement District, or PID, is a district specifically formed for the purpose of enhancing, improving or promoting the interests of the municipality. The Downtown Austin Alliance, the PID's managing entity, leads and participates in a broad range of programs and initiatives that create, preserve and enhance the value and vitality of downtown Austin. Imagery ©2020, CAPCOG, Maxar Technologies, U.S. Geological Survey, USDA Farm Service Agency, Google
downtown you will always love. Monitoring the state of downtown annually ensures our entire community remains focused on these priorities. Read more about the Downtown Austin Vision at downtownaustin.com/vision.
7 STATE OF DOWNTOWN AUSTIN 2020
DOWNTOWN AUSTIN'S ECONOMIC IMPORTANCE
Downtown Austin is a major economic driver
Downtown makes up a small share of Austin’s land
for the city, contributing more than $732
area but has substantial economic importance.
million in tax revenue in 2019. This revenue
With an average assessed value of $17 million per
paid for education, parks and public services
acre, downtown is 20 times more valuable than
throughout the city. Despite making up only
the citywide average. Additionally, one-third of
0.5% of Austin's land area, downtown accounts
downtown's land is tax-exempt, yet its share of
for 9% of all property tax, 47% of all hotel
Austin's property value has doubled in the past
tax and 11% of all sales tax generated within
10 years, reinforcing its economic importance to
the city limits. Since 2018, the total amount
the region. When considered in greater context,
of property, hotel and sales taxes generated
downtown Austin’s outsized impact extends well
downtown has increased by 35%.
beyond its geographic boundaries.
1
Downtown's share of Austin’s property value has doubled in the past 10 years.
/// Downtown by the Numbers ///
15,513 RESIDENTS
96,396
11,828
EMPLOYEES
RESIDENTIAL UNITS
11,017
11M
HOTEL ROOMS
SQUARE FEET OF MULTI-TENANT OFFICE SPACE2
$323M AARON WADE
SALES
$96M $313M HOTEL
— 1
Source: Travis County Central Appraisal District, 2019; State of Texas Comptroller’s Office, 2018 Qtr3-2019 Qtr2
2
Multi-tenant Office Space only includes sites that are greater than 100K sqft
PROPERTY
8
MARKET STRENGTH
DOWNTOWN AUSTIN ALLIANCE
9 STATE OF DOWNTOWN AUSTIN 2020
DRIVING RECORD GROWTH & DEVELOPMENT
10
DOWNTOWN DEVELOPMENT The story behind our changing our skyline
12
OFFICE MARKET Why the downtown Austin office market attracts top companies
14
HOTEL MARKET A look at hotel market performance and potential
16
HOUSING MARKET How residential development is shaping and growing downtown’s neighborhoods
18
RETAIL MARKET A look at Austin’s retail districts and the development pipeline
Downtown has enjoyed rapid growth, exceptional market strength and great opportunity to shape its future. Downtown Austin just completed an amazing decade of development. Demand for downtown's amenity-rich environment has continued to outpace new supply. To catch up, development pace and scale increased significantly over the past few years. From 2010 to 2019, 65 developments were completed in downtown Austin, compared with 51 in the preceding decade. In 2019 alone, 10 projects were completed and many more began construction. This development surge has been especially prominent in the office and residential markets. The core’s 11 million square feet of multi-tenant office inventory provides the city's densest concentration of employment opportunities, hosting 13% of Austin jobs and nearly 100,000 employees. These workers, and their workplaces, are vitally important to maintain our thriving city center. Additionally, downtown has attracted and retained the region's top talent by offering an amazing urban experience, full of cafes and nightlife, that makes Austin a place unlike anywhere else. It is walkable and well-connected to the entire region through an expanding urban transit system. Finally, Austin's top-ranked strong economy is palpable and proven in downtown, with record growth rates and transformative initiatives like the emerging Innovation District, Texas Capitol Complex construction and a reimagined Convention Center.
Photo by CARLOS ALFONSO
10 DOWNTOWN AUSTIN ALLIANCE
Downtown’s current development pipeline is at a record high, with
CARLOS ALFONSO
DOWNTOWN DEVELOPMENT
“
our skyline: The 688-foot Independent became Austin's tallest tower in
20 projects under construction and another 19 projects planned.
Austin Ranked #1 in the Real Estate Market
2019, but its record will quickly be eclipsed by the mixed-use, 848-foot 6X Guadalupe development currently
The past decade of development
under construction.
surpassed 2000-2009 figures in
—URBAN LAND INSTITUTE
every category except retail. In the
Downtown has delivered about
2010s, developers produced 6,067
35 million square feet in new
residential units, 68% of which
development over the past 20 years.
were apartments. We estimate
Most of this development has taken
that this rapid housing increase
place in the Lower Shoal Creek
has brought the downtown
area along Lady Bird Lake, in the
population to more than 15,500.
Seaholm/2nd Street District and in
Furthermore, the historically tight
the Core/Waterfront District, where
labor market has driven demand
there have been large amounts
for an increased development of
of public and private investment,
downtown office space.
generous zoning entitlements
35 million square feet have been developed in the last 20 years. At the current rate, that amount will be matched in less than 10 years.
and fewer Capitol View Corridor Downtown's growth is changing
limitations or height restrictions.
DOWNTOWN DEVELOPMENT SINCE 1999 (by SF) 830,843
529,639
705,604
991,429
3,293,199
1,541,739
2,568,219
2,536,448
3,136,651
2,501,705
2,798,364
2,258,988
'04
1,503,847
'03
1,590,439
1,429,133
'02
293,796
764,693
'01
418,602
1,462,851
'00
826,195
698,174
'99
584,459
860,170
3.5M
Under Construction
742,476
Complete
'06
'07
'08
'09
'10
'11
'12
'13
'14
'15
'16
'17
'18
'19
'20
'21
'22
3M 2.5M 2M 1.5M 1M .5M 0
'05
Source: Downtown Austin Alliance Emerging Projects Database, January, 2020
11 STATE OF DOWNTOWN AUSTIN 2020
Base Map Data © 2020 Google
EMERGING DEVELOPMENT PROJECTS3 Under Construction Proposed & In Planning Recently Completed
For an up-to-date listing, visit our interactive project map on our website at downtownaustin.com/emergingprojects.
DOWNTOWN DEVELOPMENT PIPELINE PROJECTS
TOTAL SF
OFFICE SF
RESIDENTIAL UNITS
HOTEL UNITS
PARKING SPACES
RETAIL SF
Recently Completed
10
3,136,651
727,315
946
402
3,366
56,102
Under Construction
20
7,559,057
3,845,908
2,528
1,722
11,457
233,492
Planned or Proposed
19
12,830,697
4,315,849
3,097
839
2,048
136,978
TOTAL
49
23,526,405
8,889,072
6,571
2,963
16,871
426,572
PIPELINE STATUS
— 3
Downtown Austin Alliance Emerging Projects Database, as of January 2020
12
“Tau Ceti” by JOSEF KRISTOFOLETTI / Photo by ALEX GEORGE
DOWNTOWN AUSTIN ALLIANCE
OFFICE MARKET Last year was an exciting one for downtown office development.
In 2019, approximately 800,000 square feet of new office space was delivered. Ten projects are currently under construction, totaling a record 4.4 million square feet. Six additional projects are being planned. For comparison, the past decade delivered nine projects, totaling 2.3 million square feet of new office space. This new space under construction could conservatively yield 17,600 additional jobs (estimating four employees per 1,000 square feet), although given current tenant layout trends, this figure may be much higher. For instance, Block 185 is expected to house at least 5,000 Google employees in its 793,883 square feet when it delivers in early 2023.4
The downtown Austin office market is considerably smaller in size than our Texas peers, yet it remains the strongest in the state. The downtown Austin office
DOWNTOWN MARKET COMPARISON Inventory (sq. ft.)
30%
26.2%
42.3M
24%
12% 6% 0
22.3M 11.5M
6.2% AUSTIN
with our competing markets across the U.S. Even within Texas,
Inventory
Vacancy
18%
market is relatively small compared
Total Vacancy (pecentage)
27.2M
29.3M
17.2%
50M 40M 30M 20M
14.3% 8.9%
10M 0
SEATTLE
DALLAS
DENVER
HOUSTON
Source: CBRE Research 2019 Q4 Office Market View Report — 4
Source: Austin Business Journal, 2019
the Dallas and Houston markets have substantially more inventory, yet their markets continue to lag behind Austin in overall market health indicators. Downtown’s average multi-tenant asking rent has consistently been 35%–45% above the city average. In 2019, it was $52.40 per square foot compared with $37.61 citywide.
13 STATE OF DOWNTOWN AUSTIN 2020
DOWNTOWN OFFICE DEVELOPMENT PIPELINE PIPELINE STATUS
PROJECTS (N)
OFFICE SF
2019 DELIVERIES
Recently Completed (2019)
4
727,315
901 E. 6th
Under Construction
10
3,596,908
SXSW Center
Proposed & In Planning
6
3,398,069
Third + Shoal
20
7,722,292
Westview
TOTAL
Source: Downtown Austin Alliance Emerging Projects Database, as of January 2020
DOWNTOWN NET ABSORPTION AND DELIVERY (by SF) 144K
17K
375K
789K
851K
484K
179K
71K
694K
790K
Delivery
195K
1M
670K
Net Absorption
800K 600K 400K
SAYAKA KUNZE
200K 0
2014
2015
2016
2017
2018
2019 Source: CoStar, 2019
DOWNTOWN OFFICE MARKET RENT & VACANCY Office Gross Rent Direct
Total Vacancy (%)
Vacancy
Gross Rent Per SF
35%
$70
30%
$52.40
$60
25%
$50
20%
$40
15%
$30
6.1%
10% 5% 0%
$20 $10
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
2020
$0
Source: CoStar, 2019
14 DOWNTOWN AUSTIN ALLIANCE
HOTEL MARKET Austin has one of the strongest hotel markets in Texas, led by
The number of hotels rooms downtown has increased by 94% in the past 10 years.
JTYPE
downtown.
DOWNTOWN VS CITY HOTEL REVPAR (Revenue per available room)
With an average daily room rate of
Citywide RevPAR
CBD RevPAR
$231, downtown hotels generated an estimated $179 in revenue per available room in 2019. Compared with other cities such as Dallas, Houston and San Antonio, average daily room rates in downtown continued to climb as a mix of new boutique, business and luxury hotels filled the skyline. There are over 11,000 hotel rooms downtown, representing 26% of the Austin area's total supply.
$200
$179.16
$160
$103.83
$120 $80 $40 0
'01 '02 '03 '04 '05 '06 '07 '08 '09 '10
'11
'12
'13
'14
Another 2,561 hotel rooms are
'15
'16
'17
'18
'19
Source: Visit Austin, 2019
under construction or planned for downtown. The number of hotels rooms downtown has increased by 94% in the past 10 years.
AUSTIN HOTEL OCCUPANCY RATES (Percentage of occupied rooms) Citywide Occupancy
CBD Occupancy
84% 80%
77%
76%
72%
72% 68% 64% 60% 56%
'01 '02 '03 '04 '05 '06 '07 '08 '09 '10
'11
'12
'13
'14
'15
'16
'17
'18
'19
Source: Visit Austin, 2019
15 STATE OF DOWNTOWN AUSTIN 2020
DOWNTOWN HOTEL DEVELOPMENT PIPELINE PIPELINE STATUS
PROJECTS (N)
HOTEL ROOMS
2019 DELIVERIES
Recently Completed (2019)
2
243
Homewood Suites
Under Construction
3
1,074
The Carpenter
Proposed & In Planning
2
489
TOTAL
7
1,806 Source: Downtown Austin Alliance Emerging Projects Database, as of January 2020
CITY COMPARISON Average Daily Room Rate
Hotel Occupancy (percentage)
Occupancy
80% 64%
77.4%
67.5%
$231.41
$160.07
79.5%
70.9%
65%
79.8%
$225.72
Rate
$250
$212.58
$200
$185.39 $150.30
48%
$150
32%
$100
16%
$50
0
0
AUSTIN
DALLAS
HOUSTON
SAN ANTONIO
NASHVILLE
SAN DIEGO Source: STR, 2019
HOTEL TAX REVENUE
TOTAL HOTEL TAX REVENUE GENERATED (in Millions)
by 57% since 2000.
$203M
$96M
$167M
$78M
revenue in 2019. Downtown’s share has grown
$143M
sales taxes, contributing over $96 million in tax
$58M
$14M
Downtown generates 47% of Austin’s hotel room
Austin $73M
Downtown
$25M
market, generating significant tax revenue.
$53M
A vibrant tourism industry drives a strong hotel
$200 $160
Downtown Austin (78701) was the highestgrossing ZIP code in Texas for mixed-beverage sales in 2019, with $320 million. This accounts for 37% of all mixed beverage sales in Travis county, reflecting the economic benefit of downtown Austin’s abundance of hotels, bars, clubs and entertainment venues.
$120 $80 $40 0
2000
2010
2015
2018
2019
Source: State of Texas, Comptroller, 2019
16 DOWNTOWN AUSTIN ALLIANCE
JTYPE
HOUSING MARKET
AUSTIN APARTMENT RENTAL RATE (per SF) Citywide Rate
CBD Rate
$2.74
$2.80 $2.24
$1.48
$1.68
Downtown continues to attract
$1.12
new residents.
$0.56 0
Residential development is changing the skyline while shaping and growing downtown’s neighborhoods.
In 2019, three residential towers and '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10
'11
'12 '13 '14 '15 '16 '17 '18 '19 Source: CoStar, 2019
one mixed-use hotel/apartment tower were completed downtown. These towers — The Independent (currently downtown's tallest
AUSTIN APARTMENT OCCUPANCY (Percentage of available apartments) Citywide Occupancy
CBD Occupancy
Gables Park Plaza — added 691 new residential units. New additions were also made within the 2nd Street District and Rainey Street District,
100%
93%
92%
92%
where tenants enjoy direct access to downtown parks and green space such as Republic Square and the Ann and Roy Butler Hike-and-Bike Trail at Lady Bird Lake. Rental prices
83%
for downtown apartments grew 7.5% year over year — the highest increase
74% 65%
tower), 70 Rainey, Austin Proper and
in the city. '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10
'11
'12 '13 '14 '15 '16 '17 '18 '19 Source: CoStar, 2019
17 STATE OF DOWNTOWN AUSTIN 2020
RESIDENTIAL DEVELOPMENT PIPELINE
With 946 apartment and condo units recently completed, 2,528 units under construction and another 3,097 planned, downtown’s growing housing stock is being quickly absorbed.
DOWNTOWN RESIDENTIAL DEVELOPMENT PIPELINE PIPELINE STATUS
PROJECTS (N)
RESIDENTIAL UNITS
2019 DELIVERIES
Recently Completed (2019)
4
946
70 Rainey
Under Construction
5
2,528
The Independent
Proposed & In Planning
4
3,097
Gables Park Plaza/Hotel Zaza
TOTAL
13
6,571
The Tyndall
Source: Downtown Austin Alliance Emerging Projects Database, as of January 2020
/// By the Numbers /// APARTMENTS
5,316 Apartment Units
$2,561 Average Rent per Month
CONDOS
$2.70
374
Average Rent per Sq. Ft.
Condo Sales in 2019
$696K
$575
Average Sale Price
Average Price per Sq. Ft.
Source: Source: Capitol Market Research, 2019
APARTMENT & CONDO UNITS DEVELOPED SINCE 2000 Apartment Units
Condo Units
1,600 1,400
1,479
704
818
1,200 1,000
725
800 600
660
400 200 0
360
2000 2001
155
584
476
445
82
239
292
533
290
240 99
266
199
159
80
2002 2003 2004 2005 2006 2007 2008 2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
221 2019
Source: Downtown Austin Alliance Emerging Projects Database, as of January 2020
18 DOWNTOWN AUSTIN ALLIANCE
RETAIL MARKET Over the years, the square footage and amount of retail space in downtown Austin have grown significantly.
When people think of Austin, they think of quirky bars on Rainey Street, live music on Red River Street and old-fashioned saloons on East Sixth Street. This uniquely vibrant scene has been buoyed as recently completed developments from Seaholm District to East Sixth Street have connected downtown’s shopping and entertainment options all the way to Lamar Boulevard. Furthermore, the market has maintained a high occupancy rate of 97.7% and rents ranging from $30 to $40 per square foot.
Congress Avenue Shops
DOWNTOWN RETAIL DEVELOPMENT PIPELINE PIPELINE STATUS
PROJECTS (N)
RETAIL SF
2019 MULTI-USE DELIVERIES
Recently Completed (2019)
8
56,102
70 Rainey
The Carpenter
Under Construction
8
233,492
901 E. 6th
The Independent
Proposed & In Planning
9
136,978
Gables Park Plaza/Hotel Zaza
Third + Shoal
TOTAL
25
426,572
SXSW Center
Westview
Source: Downtown Austin Alliance Emerging Projects Database, as of January 2020
CONGRESS AVENUE PEDESTRIAN COUNTS (Average count/time of day) At the Bridge The Austonian 408 Congress (Newks) 609 Congress (Royal Blue) 800 Congress (Cafe) 1005 Congress (Capitol)
AVERAGE ANNUAL ASKING RENT
$34/SQ. F T.
1,000
OCCUPANCY RATE
97.7%
Source: CBRE 2019 Q4 Retail Market View
750 500
Pedestrian activity along Congress Avenue, our retail core, gives retailers
250
a sense of downtown’s vibrancy. For example, weekdays see a lunchtime
0
0:00
2:00
4:00
6:00
8:00
10:00
12:00
14:00
16:00
18:00 20:00 22:00 Source: EcoCounter, 2019
surge as tourists, residents and office workers alike enjoy downtowns food, drink and entertainment options.
19 STATE OF DOWNTOWN AUSTIN 2020
RETAIL MIX BY DISTICT Food, Drink, Entertainment
Retail Goods
Retail Services
NORTH LAMAR 2ND STREET CONGRESS AVE. DOWNTOWN OVERALL EAST 6TH STREET WEST 6TH STREET RED RIVER RAINEY STREET 0%
25%
50%
75%
100% Source: LiveXYZ, 2019
RETAIL MAP Food, Drink & Entertainment Retail Goods Retail Services
Base Map Data © 2020 Google Source: LiveXYZ, 2019
20
OPPORTUNITIES & CHALLENGES
DOWNTOWN AUSTIN ALLIANCE
21 STATE OF DOWNTOWN AUSTIN 2020
DOWNTOWN IN DEMAND
22
RESIDENTS Learn about downtown's population growth, Austin's affordability crisis and efforts to solve homelessness
24
WORKFORCE An overview of downtown employment trends and demographics
26
TALENT MARKET
Explore Austin’s Innovation District and talent pool
28
VISITORS View tourism highlights and plans for the Austin Convention Center
30
CONNECTING DOWNTOWN A look at downtown mobility options and efforts to shift commute modes
While downtown is in high demand, the area isn't without challenges. Issues of affordability, safety and accessibility are apparent and threaten its full potential. Downtown residents of all ages benefit from their proximity to landmarks such as the Texas State Capitol and Lady Bird Lake, as well as to major employers, restaurants and entertainment options. Furthermore, new residents bring energy, character and vibrancy to downtown's fast-changing landscape. The increased population density has also attracted local shops, restaurants, health and beauty establishments and other neighborhood services. These amenities, along with access to many transit options, make downtown living very appealing. Austin continued to live up to its "Live Music Capital of the World" reputation in 2019, with famous downtown events such as South by Southwest and the Austin City Limits Music Festival, as well as thousands of smaller nightly performances, drawing locals and tourists alike. Although music put Austin on the map, the city's worldclass dining, outdoor recreation, sports events and cultural attractions have further raised its international profile. The continual growth in tourism and festivals has fueled much of downtown retail activity and sales. Efforts to maintain our city’s thriving center don't come without challenges. Mobility is critical to downtown Austin’s ability to grow and thrive in the long term. Residents, employees and visitors must be able to safely and easily move into, out of and around the urban core. Also, Issues of affordability and homelessness are magnified in downtown, similar to other cities. Austin's sprawling growth presents challenges, but many of the solutions lie downtown. Photo by TOMEK BAGINSKI
22 DOWNTOWN AUSTIN ALLIANCE
RESIDENTS Downtown is one of Austin's most popular neighborhoods, growing by an estimated 8% annually.
AARON WADE
There are more than 15,500 residents living in downtown Austin. The population has been growing steadily since 2000, adding over 7,800 residents (103% growth) in the past 10 years.
POPULATION & HOUSING ESTIMATES (Total number) Housing Units 15,000
948
Downtown households are mostly composed of single professionals
Residents
4,222
earning a median income of $110,000
2,331 4,176
5,670 7,635
11,828 15,513
30% of downtown households have a median income of $200,000 or more.
5,000 1990
2000
2010
2019
Source: U.S. Census Bureau, Downtown Austin Alliance, 2019
MEDIAN HOUSEHOLD INCOME (in Thousands of Dollars) Downtown
Austin
Texas
neighborhoods have a high
$110K
100
concentration of college-educated
$67K
50
$60K 1990
A diverse, sizable residential population is a critical component of a thriving, healthy downtown. Downtown and its adjacent
150
0
downtown have surpassed Austinarea incomes since 2010. Additionally,
10,000
0
per year. Median household incomes
2000
generation (ages 23-38) accounts for the largest share of downtown’s
ACS 2014-2018
2010
millennial residents. While the millennial
Source: US Census 1990, 2000, 2010, ACS 2014-2018
demographic profile at 56%, baby boomers (ages 55-75) comprise 21% of the downtown population — a 78% increase since 2010.
GENERATIONS (per capita) Downtown
As Austin grows more racially diverse, downtown is lagging in its share of
Austin 3% 3%
Matures
nonwhite residents. According to the 2018 American Community Survey
21%
Baby Boomers
estimate, the downtown population
15% 18% 19%
Gen X
is 27% nonwhite, whereas Austin's
Millennials Gen Z
42%
2% 0%
56%
20%
30%
40%
of residents continue moving to Austin, opportunities remain for downtown to
21% 10%
population is 52% non-white. As droves
50%
60%
Source: US Census ACS 2014-2018
attract and serve diverse populations.
23 STATE OF DOWNTOWN AUSTIN 2020
WHO LIVES DOWNTOWN? POPULATION CHARACTERISTICS
DOWNTOWN
AUSTIN
15,513
935,755
Population Under Age 18 (Children)
2%
21%
Population Age 65 and Over
11%
9%
Median Age
35
33
Median Home Value
$457,428
$312,300
Median Household Income
$110,303
$67,462
Male/Female Ratio
61% / 39%
51% / 49%
College Educated
74%
50%
1.6
2.5
27%
52%
Total Population
Average Household Size Non-White Population
Source: US Census ACS 5-year 2018 Estimates
HOMELESSNESS
Over the past 15 years, Austin has experienced tremendous population growth coupled with significant increases in housing costs. According to local data, approximately 3,000 Austin households need immediate housing and services. And according to the Downtown Alliance Homeless Process Triage, Austin's homeless service system is operating at one-third of the needed capacity.
Addressing homelessness is a top strategic priority for the Downtown Austin Alliance and the City of Austin. Private sector initiatives such as Community First Village and ATX Helps will add to the much needed capacity in the near future. To read more about Downtown Austin Alliance’s efforts to broadly address the needs of people experiencing homelessness, visit:
5
In 2019, there were an estimated 2,255 people experiencing homelessness in the city. Of greater
downtownaustin.com/what-we-do/advocacysupport/homelessness-initiatives.
Over the past five years, overall homelessness increased by 23% and unsheltered increased by 63%.
concern are the steady increases of overall and unsheltered homeless since 2015 — Austin's 10-year low point. Over the past five years, overall homelessness increased 23% and unsheltered increased 63%.
AUSTIN'S HOMELESS POPULATION LOCATED DOWNTOWN
35%
AUSTIN'S TOTAL UNSHELTERED POPULATION WITHIN 1/4 MILE OF 7TH & NECHES STREETS
— 5
Source: Downtown Austin Alliance Homeless System Process Triage, 2019. Austin-Travis County Annual Point-in-Time Count.
25%
24 DOWNTOWN AUSTIN ALLIANCE
WORKFORCE Downtown has the city’s highest concentration of jobs per square mile.
SAYAKA KUNZE
Downtown Austin has remained very attractive to potential tenants willing to pay a premium to office in an environment more amenity-rich than other local submarkets. Downtown workers enjoy abundant lunch options, happy hour spots, live music venues, parks and cultural events. The area's rent premium has been consistently increasing because of downtown's historically small market and tight vacancy rates. It also
Downtown Austin’s total employment is smaller than that of our peers' downtowns but has grown at a much faster rate.
reflects the region's extremely tight labor market, in which unemployment is at 2.5%.
79,007
77,812
75,762
75,538
77,727
81,424
85,875
88,458
91,111
93,448
96,396
77,151
74,226
71,629
70,123
71,009
74,146
100K
73,578
DOWNTOWN EMPLOYMENT
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
80K 60K 40K 20K 0
80 2002
2003
2004
2005
2006
2007
2008
Source: JobsEQ 2019 Q3
% CHANGE IN TOTAL DOWNTOWN EMPLOYMENT 2012-2017 22.5%
19.0%
18.2%
9.6%
6.2%
6.0%
CHARLOTTE
AUSTIN
DALLAS
HOUSTON
DENVER
SEATTLE
24% 18% 12% 6% 0%
Source: JobsEQ 2019 Q3
25 STATE OF DOWNTOWN AUSTIN 2020
WHO WORKS DOWNTOWN? JOBS BY GENDER
DOWNTOWN
AUSTIN
Male
50.1%
51.4%
Female
49.9%
48.6%
Age 29 or younger
22.1%
23.9%
Age 30 to 54
59.7%
58.1%
Age 55 or older
18.2%
18.0%
$1,250 per month or less
12.9%
17.7%
$1,251 to $3,333 per month
22.2%
28.8%
More than $3,333 per month
64.9%
53.5%
White Alone
82.3%
80.5%
Black or African American alone
9.5%
10.2%
American Indian or Alaska Native alone
0.7%
0.8%
Asian alone
5.6%
6.5%
Native Hawaiian or Other Pacific Islander alone
0.1%
0.1%
Two or more race groups
1.8%
1.9%
Not Hispanic or Latino
77.0%
72.6%
Hispanic or Latino
23.0%
27.4%
Less than high school
8.9%
11.0%
High school or equivalent, no college
16.9%
17.7%
Some college or associate degree
25.5%
24.2%
Bachelor's degree or advanced degree
26.6%
23.2%
Educational attainment not available (workers 29 or younger)
22.1%
23.9%
JOBS BY WORKER AGE
JOBS BY EARNINGS
JOBS BY WORKER RACE
JOBS BY WORKER ETHNICITY
JOBS BY WORKER EDUCATIONAL ATTAINMENT
Source: U.S. Census Bureau, OnTheMap Application and LEHD Origin-Destination Employment Statistics (Beginning of Quarter Employment, 2nd Quarter of 2002-2017).
Health & Social Assistance Other Services
8.3%
5.5% 29.2%
Food & Accommodation Services
Professional & Technology Services
14.2%
19.9%
Public Administration
EMPLOYMENT BY INDUSTRY
22.9% Business Services Source: JobsEQ® 2019Q3
26 DOWNTOWN AUSTIN ALLIANCE
TALENT Nationally recognized companies such as Google, Facebook and Indeed have continued to locate downtown, choosing to pay a premium to gain
AUSTIN TALENT /// By the Numbers ///
unfettered access to one of the nation’s best talent pools — and to offer employees the unique perk of working downtown.
CBRE TECH TALENT RANKING (2019)
Austin-Round Rock leads all Texas metro regions in educational attainment growth, adding 157,879 adults
#5
with a minimum of a bachelor’s degree from 2010 to 2019. This has made our region highly competitive within the global employment market.
TOTAL TECH TALENT (2018)
72,360
Locating in downtown Austin gives employers prime access to one of the nation's best talent pools.
GROWTH IN TECH TALENT (2013-2018)
AUSTIN-ROUND ROCK MSA'S GROWING LABOR FORCE (in Millions)
TECH TALENT LABOR CONCENTRATION (2018)
Civilian Labor Force
1.23M
1.2M
1.16M
1.12M
1.07M
1.05M
1.02M
Year Over Year Increase
988K
961K
931K
886K
7%
Annual Growth
Civilian Labor Force
1.4
12.6%
7%
1.2
6%
1.0
5%
0.8
3.1% 4% 3%
0.6 0.4
2%
0.2
1%
0
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
0%
Source: U.S. Bureau of Labor Statistics, 2019
TOTAL INCREASE IN CIVILIAN LABOR FORCE (2018-2019)
37,706
UNEMPLOYMENT RATE (2019)
2.5%
EDUCATIONAL ATTAINMENT % INCREASE (2012-2019)
57.20%
POPULATION OF 20-SOMETHINGS (2017)
19%
Source: Bureau of Labor Statistics, CBRE Tech Talent Rankings 2019
27 STATE OF DOWNTOWN AUSTIN 2020
LOOKING AHEAD: AUSTIN'S INNOVATION DISTRICT
2,800
new permanent jobs Photo Courtesy of Dell Medical School
$800M economic output
Health innovation is taking shape in Austin. The Innovation District, a one-of-a-kind downtown Austin neighborhood, has gone from generating buzz to breaking ground. Redevelopment of
$12M new tax base
+27%
increase in jobs accessible to those without a college degree
Central Health’s downtown property — the former Brackenridge Campus — has begun. Block 164, the flagship building of Austin’s Innovation District, is now under construction. A broad, community-wide network is shaping the Innovation District into a hub of health innovation and positioning it to be the center of a diversified, inclusive regional economy.6 Downtown Alliance, in partnership with UT Austin's Dell Medical School, Central Health, Ascension Seton and Opportunity Austin, is leading Capital City Innovation, the nonprofit coordinating the vision, strategic direction and emergence of Austin's Innovation District. It supports and encourages innovation among the life sciences, health care and technology industries throughout Central Texas by combining creative placemaking and programs that promote partnerships.
53%
increased land value Concordia University Texas
4%
rent growth premium
Central Texas Angel Network
The Domain
TiE Austin
BioAustin Tech Ranch Austin Technology Incubator Health Tech Austin Capital Factory Techstars
ACC Bioscience Incubator
Manor New Tech High School
The University of Texas at Austin Huston-Tillotson University Central Health St. Edward’s University
— 6
Source: Austin’s Innovation District Market Analysis, 2020
= INNOVATION DISTRICT
Texas State University
28 DOWNTOWN AUSTIN ALLIANCE
Downtown Tourism (2019)
A timeline of daily activities & yearly highlights
VISITORS Downtown attractions anchor Austin’s strong tourism industry. The city center offers unique, once-in-a-lifetime experiences that push culture and entertainment to new heights.
Downtown Austin is a hub of tourism and culture for the city as well as home to Austin's largest concentration of hotels. Visitors and residents can walk to downtown's dozens of live music venues, hundreds of bars and restaurants, 113 public
JANUARY Women's March
MORNING
MARCH
Many explore Austin's history with a downtown guided walking tour, learning about the city's rich history and culture.
South by Southwest
Austin Reggae Festival
art installations, 39 museums and cultural venues, historic structures, and sporting events at The University of Texas at Austin. Entertainment districts such as Sixth Street, 2nd Street, Red River, Congress Avenue, Rainey Street and the Warehouse District offer distinct experiences around the clock — from shopping and galleries to eclectic nightlife and events.7
2019 TOURISM HIGHLIGHTS
NOON Filled with many lunch options, downtown has over 150 restaurants to choose from.
• The New York Times named Austin one of its "52 Places to Go in 2020."
• Austin-Bergstrom International Airport announced new
nonstop flights between Austin and Paris and Amsterdam, joining the existing nonstops to London and Frankfurt.
• The 2019 Austin City Limits Music Festival brought in $265
million, featuring stars including Billie Eilish, Lizzo, Childish 8
Gambino and The Cure.
Austin Food & Wine Festival
EVENING Yoga and other fitness events commence. Happy hours, street cafe specials, and live music begin to line the streets as the work day comes to a close.
Pecan Street
Festival
JULY Red River Cultural District's Hot Summer Nights Austin's Birthday Bash
AUGUST Pride Week
• SXSW 2019 brought in $356 million,9 attracting tech, film and
OCTOBER
• Other downtown-area events such as the Austin Food & Wine
Austin City Limits Festival
music industry innovators from around the world.
Festival, Trail of Lights, Downtown Sing-Along and Holiday
Stroll, Creek Show, Pride Week, Moontower Comedy Fest and the Austin Women's March united residents and tourists alike. • The University of Texas at Austin's new Bevo Blvd., which
turns San Jacinto Blvd. into an action-filled pregame street party before Longhorn football games, drew visitors from across the U.S.
• Hotel ZaZa and the Austin Proper Hotel opened downtown. — 7
Source: City of Austin Cultural Asset Mapping Project, 2018
8
Source: Angelou Economics, 2019
9
Source: Greyhill Advisors, 2019
LATE NIGHT Top musical talent and live acts at places such as The Parish and Mohawk celebrate Austin's music scene.
NOVEMBER Creek Show
DECEMBER Downtown Holiday Stroll Trail of Lights
29
Creek Show 2019 / ROGER HO
Austin City Limits Music Festival / MAXWELL COLLINS
STATE OF DOWNTOWN AUSTIN 2020
AUSTIN AREA VISITOR PROFILE
ORIGIN
80%
INTRASTATE
20%
$105,779
OUT OF STATE
AVERAGE HOUSEHOLD INCOME
PURPOSE OF STAY
74% LEISURE
26%
BUSINESS
DEMOGRAPHICS
45
AVERAGE AGE
63% MARRIED
35%
HAVE CHILDREN
75%
EMPLOYED
12% RETIRED
Source: Source: DK Shifflet, for the Office of Governor, Economic Development & Tourism Division (2017 data)
LOOKING AHEAD: AUSTIN CONVENTION CENTER The Austin Convention Center hosted 54 conventions and trade shows downtown in 2019. These drew 323,385 visitors — a 5.2% decrease from 2018. In 2019, the Austin City Council approved a $1.2 billion plan to expand the Convention Center. Added capacity will drive the continued growth of downtown’s strong tourism economy as well as business opportunities throughout Central Texas. Photo Courtesy of the Austin Convention Center
30 DOWNTOWN AUSTIN ALLIANCE
/// By the Numbers /// Austin is one of the most sprawling
cities in Texas. Rapid growth in the city’s periphery has accelerated
transportation constraints, producing
urban areas. This congestion cost Austin $1.2 billion in lost productivity and wasted fuel in 2017.11 As Austin continues to grow outward, this
some of the state’s highest averages
waste will only increase.
wasted in traffic.
A net average of 105 people move to
of miles driven daily and minutes
Austin each day,12 many from cities Downtown is Austin’s largest
with several transportation options.
employment center, with 96,396
This increased demand presents
employees in 2019. Only 2% of these
several mobility-related challenges
employees live downtown, and 20%
in Austin, limiting commuters’
live outside Austin's city limits.
access to and within downtown.
10
JTYPE
CONNECTING DOWNTOWN
However, a new mobility landscape
continued success hinges on moving
for downtown is starting to take
an ever-increasing number of Austin-
shape, with major initiatives like
area residents into and around
the upcoming rebuilt Downtown
downtown. Austin has the third-
MetroRail Station, the Project
highest number of commuter hours
Connect plan and I-35’s planned
in traffic among America’s large
reconstruction.
80,000+ ANNUAL MICROMOBILITY TRIPS
1 Million+
ANNUAL TRANSIT RIDERSHIP
3.9 Million
ALEX PUGLIESE
Downtown’s ability to grow and its
PARKING SPACES
— 10
Source: JobsEq, ESRI, Data as of 2019Q3
11
Source: Texas A&M Transportation Institute
12
Source: City of Austin Demographer, 2019
31 STATE OF DOWNTOWN AUSTIN 2020
MOBILITY & TRANSPORTATION B-Cycle Station
UT Shuttle
Multi-Use Paths
High Frequency Bus
Local Bus
Commuter Rail
Map Data © 2020 Google
32 DOWNTOWN AUSTIN ALLIANCE
SHIFTING COMMUTE MODE
Central Austin has reached a point where few additional roads and little road capacity can be built to accommodate the increasing numbers of single-occupancy vehicles and growth projections. Positive movement has been noted in multiple travel modes in downtown.
Telework: The most notable shift in Austin's commuting trends is the increase in telework. In 2017, 8.3% of the area's full-time employees telecommuted, up from 4.3% in 2005.13 Austin ranked second for telecommuting among the country's 100 largest metro areas. And 15% of people with jobs in the downtown area telecommute.
Although more commuters are opting to use other forms of transportation to conduct
This is a positive trend given our city's population
business, drive-alone commuting remains
growth and over-reliance on single-occupancy
the dominant mode of choice.
vehicles for commuting. However, in recent years job growth has outpaced the increase in telework. Other transportation modes must represent a
NOTABLE MODE SHIFTS
larger share of Austin’s commuting profile. As
While more commuters are opting to use other forms of transportation to conduct business, drive alone commuting remains the dominant mode of choice.
downtown employers begin to prioritize employee commute programs, flexible schedules and remote
Micromobility (Scooter and bike shares):
working options are key business strategies.
Austin is one of three cities leading in scooter ridership nationwide. In 2018, people
Transit: Annual Ridership in downtown has
took more than 84 million trips on shared
increased. Capital Metro's Downtown Station,
micromobility in the U.S., more than double the number of trips taken in 2017, according to the National Association of City Transportation Officials report. Eight micromobility companies were operating in Austin at the end of 2019, with more than 18,600 units permitted for use downtown. Forty percent of all micromobility trips in Austin either begin or end downtown.
where 250,000 commutes are made in and out of downtown each year on the MetroRail Red Line, is expanding to increase the line's capacity. The station was under construction for most of 2019. CapMetro opened a temporary station just east of downtown, which will be in use until the Downtown Station reopens in 2021 as a central hub for multimodal options and connectivity.
AUSTIN TRANSIT RIDERSHIP 2018
2019
Downtown Station experienced a year-over-year decline due to the site being under construction in 2019.
System-wide
Top Five Downtown Stops
Austin
28,458,345
635,267
Guadalupe/4th
650,830 289,586
Republic Square Station
305,119
29,101,101
252,168
Downtown
Lavaca/4th 3,943,230
0
10,000,000
251,747
Downtown Station
135,048 177,103
Austin History Center
3,951,576 20,000,000
30,000,000
359,062 0
200,000
400,000
600,000
800,000
Source: Capital Metro, 2019
— 13
259,110
Source: US Census ACS estimates 2013-2017
33 STATE OF DOWNTOWN AUSTIN 2020
CITY TO CITY COMPARISON OF EMPLOYEE DRIVE-ALONE RATES City-wide Employees
79%
NASHVILLE
77%
CHARLOTTE
74%
AUSTIN
70%
DENVER
61%
MINNEAPOLIS PORTLAND
58%
SEATTLE
48%
SAN FRANCISCO
33% 0%
25%
50%
75%
100%
Source: US Census ACS 2014-2018
MOVABILITY COMMUTE STUDY
Movability, Austin’s only Transportation Management Association, in partnership with Texas State University, launched a pilot project to measure downtown employees’ commuting habits. In late 2019, the project’s self-selecting survey asked more than 600 employees to track their commute modes for 30 days in the 60-day study. It found that employees traveled via single-occupancy vehicle
SAYAKA KUNZE
for 60% of their trips.
34
SAYAKA KUNZE
LOOKING AHEAD
DOWNTOWN AUSTIN ALLIANCE
MOBILITY MEETS DEMAND
Economic development activity downtown creates a major
W 45th
Street Airport
impact on Central Texas. Although thoughtful planning
E 45th Stre
et
Lamar
Blvd
significant financial investment, strong leadership and
Blvd
and large contributions in mobility have been made,
unwavering community support are crucial for Austin to
41st Stre
et
continue to thrive.
I-35
nation beyond. Navigating I-35 through downtown Austin,
Man
however, is a less inspiring and more frustrating experience. discuss conceptual solutions for I-35 through downtown.
Street W 24th
Mar
I-35
pressway
Enfield Road
once-in-a-lifetime opportunity to connect Austin’s central business district and the UT campus with East Austin over a highway that has divided our city since the 1950s.
ave z St
6th Street
ree t
E Cesar Chavez Street
I-35 IMPROVEMENT PROGRAM Project Scope
Major Points of Interest Separated by I-35
Nash Hernandez Congress Ave
an estimated construction cost of $5 billion. This presents a
r Ch
I-35
of the city. The project will begin construction in 2022 with
esa
Street
approximately three miles of highway through the center
W 6th Street WC
11th Street
S First
This massive undertaking will include the lowering of
15th Street
Lamar Blvd
environmental study of approximately 10 miles of Interstate Highway 35 through the heart of Austin, Texas.
1
11th
MoPac Ex
conversations, TxDOT is conducting a schematic design and
K
St
integrated into the fabric of downtown. As a result of those
her
co n
serve multi-modal traffic, and the frontage roads are not
Lut
Windsor Road
years, physically and socially separating downtown from the east side. Further, the east to west crossings do not
tin
Chi
downtown have negatively impacted our community for
or R
eeton Dean K
In 2014 TxDOT convened a Downtown Working Group to The group recognized that I-35’s elevated structures through
Street
tte St
et
E 38th
Lafaye
pressway
I-35 links downtown Austin to the entire state and our great
W 29th Stre
Guadal
MoPac Ex
INTERSTATE 35
Street
upe Str eet
E 38th
St
35 STATE OF DOWNTOWN AUSTIN 2020
PROJECT CONNECT A legacy of discrimination in housing and transportation policy has long segregated the city’s neighborhoods. Long-term investments in significant public transit infrastructure will begin to overcome these challenges by connecting our prosperous downtown to the metro region. Project Connect will enable equitable mobility by creating a system of high-capacity transit options that will connect people to downtown’s amazing places and abundant opportunities. Approval of the system plan is likely to go to voters in fall 2020 with construction expected to begin shortly thereafter. The proposed system includes two potential light-rail lines that run through downtown, connecting people from North and South Austin, as well as the airport. Daily ridership on two new light-rail lines, the Orange and Blue, is expected to reach over 68,000 by 2040. The light-rail lines will connect below Republic Square in the Downtown Transit Tunnel to ensure the 53rd Str eet
reliability of the entire transit system during peak hours.
(right) Downtown is the fulcrum of this 21st-century high-capacity transit system, Airp or t
connecting the entire region to each
Blvd
other through downtown.
d Roa
Kin
g Jr
12t
hS
d Blv
tree
SYSTEM COMPONENTS
t
Pedernales Road
E 6th Street
Downtown Transit Tunnel A downtown tunnel will provide speed and reliability.
Commuter Rail
Light Rail
BRT
Rapid Bus
The new Green Line will connect downtown to Colony Park and potentially beyond. Enhanced services on the Red Line will increase frequency and capacity.
The Blue Line will connect downtown, the University of Texas and the airport. The Orange Line will connect South Austin and North Austin through downtown.
Larger buses with faster onboarding in dedicated lanes through downtown.
More zero-emission vehicles in the fleet and improved bus amenities.
36
LOOKING AHEAD
DOWNTOWN AUSTIN ALLIANCE
37 STATE OF DOWNTOWN AUSTIN 2020
TRANSFORMING SPACES
38
PUBLIC SPACE From Congress Avenue & the Waterloo Greenway to Writing on the Walls—how downtown’s spaces are shaping the future
40
SHAPING THE FUTURE OF DOWNTOWN Transformative plans and initiatives impacting the future of downtown
2020 is a critical time in downtown's history, when more than half of the city's center is slated for major transformation. A lot has changed in the past two decades, and much more is planned for the future. Government, business and community leaders are working together to create and implement visionary plans that will shape downtown’s future. These plans will help us collectively navigate the challenges brought on by Austin’s growth. They will enable us to capitalize on opportunities for innovation, collaboration, recreation, arts and culture — opportunities that can benefit the city and the entire region. And they will create thriving districts and places where people want to be. Although much of downtown is developed, there is still a lot of potential — especially in the eastern half. Expected changes to the Land Development Code, along with pending planning efforts for various downtown districts, bring many opportunities to usher downtown into a new frontier. Public infrastructure investment guides real estate activity and economic development and reinforces the need for close coordination between policy and physical planning. The next 20 years may see even more growth as downtown continues to flourish.
Rendering of Moody Amphitheater at Waterloo Park by THOMAS PHIFER AND PARTNERS
38
PUBLIC SPACE /// By the Numbers /// Roughly half of downtown’s land is dedicated to the public realm, and transforming underutilized spaces into engaging, welcoming places is one of downtown’s biggest opportunities.
Downtown's development boom has spurred increased investment in our public spaces, such as parks, squares and plazas. Public spaces make downtown livable and enjoyable. They provide both lively gathering spots and respite from city life. And they are the perfect venue for showcasing Austin's unique history, culture, creativity and natural treasures.
REPUBLIC SQUARE Since reopening in fall 2017, Republic Square has become an essential outdoor respite for residents and employees in downtown. From the weekly SFC Farmers’ Market to Tuesday night yoga classes, we have seen record numbers of people enjoying community within the open space. In 2020, Salt & Time Café will open inside Republic Square, marking the first time in the park’s history visitors can purchase food, coffee, beer and wine for consumption on-site. Salt & Time Café will be open daily featuring farm-to-table take out options including charcuterie plates, fresh salads and artisan sandwiches with fresh-cut meats from their East Side butcher shop. The opening of Salt & Time Café will prove instrumental the square's programming. As the area around Republic Square continues to flourish, the square will become an even more critical piece of the downtown landscape and community.
(top right) Writing on the Walls was a series of public art installations and events in March 2020. As part of the event, artists Sandra Chevrier and Shepard Fairey collaborated on a new mural on the side of The LINE entitled, “The Beauty of Liberty and Equality.” (bottom right) Children pin up birthday cards they made for the city at Austin’s Birthday Bash at Republic Square in August 2019.
ACRES
283
SAYAKA KUNZE
DOWNTOWN AUSTIN ALLIANCE
39 STATE OF DOWNTOWN AUSTIN 2020
LOOKING AHEAD: AUSTIN'S PUBLIC SPACES Aerial View of Waterloo Park under construction. Photo Courtesy of Waterloo Greenway
CONGRESS AVENUE Congress Avenue, also known as the “Main Street of Texas,” is one of Austin's most iconic and active streets. From the Texas State Capitol to Lady Bird Lake, Congress Avenue serves as the central spine of downtown's cultural, economic and civic activity. It is home to both global technology firms and the world’s largest bat colonies. It connects downtown to a regional system of creeks and green space via the Ann and Roy Butler Hike-and-Bike Trail. And it serves as a major gateway to both South and Central Austin. Congress Avenue is undergoing a revitalization to fulfill the community's vision for the area. In partnership with the Downtown Alliance and community stakeholders, the City contracted with an Urban Design consultant team to help refine and realize the vision for the Congress Avenue from the Capitol to Riverside Drive. The Congress Avenue Urban Design Initiative is expected to be adopted by Council this year and will ensure the future of the street is vibrant, healthy, accessible and connected. Recent lighting and streetscape improvements, along with new banners, planters and public art, have increased the avenue's beauty and functionality.
SAFETY
Austin has the perception of being a very safe city, and by almost every measure it is. Austin has the fourth-lowest violent crime rate and ninth-lowest property crime rate of the most populous U.S. cities. Austin's violent crime rate has remained stagnant since 2014, whereas Austin's residential population has grown by an average of 3% annually. Austin's property crime rate has been on a downward slope since 2014, with a slight uptick in 2018. Conversely, downtown’s violent crime has increased over the past six years. Violent crime reached an all-time high in 2019. Making downtown's streets as safe and clean as possible is a top priority for the Downtown Austin Alliance so residents, employees and visitors alike can enjoy all the great activities and public spaces downtown Austin has to offer. To learn more about the Downtown Austin Alliance’s clean and safe program, visit: downtownaustin.com/what-we-do/
WATERLOO GREENWAY
our-services.
The vision for the 1.5-mile Waterloo Greenway is to connect downtown’s eastern edge via a chain of parks and trails along Waller Creek, bringing the entire Austin community together. The Waterloo Greenway Conservancy is implementing this vision in phases, with Waterloo Park currently under construction and anticipated to open in fall 2020. Palm Park will be revitalized as a major entrance point to the greenway, and this destination will become even more engaging for families and children from all over Austin.
As Austin’s prominence grows, safety in downtown has been challenged.
40 DOWNTOWN AUSTIN ALLIANCE
SHAPING THE FUTURE OF DOWNTOWN THE DOWNTOWN AUSTIN VISION The Downtown Austin Vision is a compass that bolsters the efforts of many public and private entities working together to tackle complex projects. It instills a broad sense of ownership, and urgency, around shaping the next era of downtown. The Vision is especially important right now, as change occurs rapidly and important citywide policy decisions are being made.
LAND DEVELOPMENT CODE The City of Austin is in the process of updating its 30-year-old land development code so that it reflects Imagine Austin, the city's comprehensive plan, and provides housing capacity for our fast-growing population. The code determines land use including what, where and how much development can (and cannot) be built. Its regulations will impact all aspects of future development including housing affordability and supply, capital improvements and infrastructure, drainage and water quality and parks and open space. The Code determines what can be built, where it can be built and how much can (or cannot) be built. This set of regulations impacts everything from transportation and signage to public space, first-floor uses, walkability and watershed protection.
ASMP & ACT PLAN The Austin Strategic Mobility Plan (ASMP) is a city-wide multimodal transportation plan. The plan reflects a two-year public engagement process and transportation planning analysis. ASMP’s overarching goal is to achieve a 50/50 mode share split (50% of people commuting via single-occupancy vehicle, 50% by other modes) by 2039 citywide. Austin has begun developing the Austin Core Transportation Plan (ACT) as an update to the 2002 Downtown Austin Mobility Plan and the Downtown Austin Plan’s 2008 Transportation Framework Plan. The ACT Plan will provide an integrative multimodal strategy that will align projects and policies in the downtown core. Imagery ©2020, CAPCOG, Maxar Technologies, U.S. Geological Survey, USDA Farm Service Agency, Google
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PLANNING FOR DOWNTOWN
UT CAMPUS MASTER PLAN Guides efforts to revitalize the core campus, enhance the central campus, forge strategic partnerships, facilitate safer mobility, transform the Waller Creek/San Jacinto Corridor, improve learning and research environments and weave together academic and residential life.
AUSTIN INNOVATION DISTRICT Envisions an inclusive community where Austinites collaborate to create new models of health and economic growth for all. Anchored by The University of Texas at Austin’s new Dell Medical School, Dell Seton Medical Center and Central Health Downtown, this downtown district is at the center of a regional ecosystem that will create, refine and validate ideas for improving health locally and even nationally.
TEXAS CAPITOL COMPLEX Reimagines the Texas Mall as a destination that celebrates and centralizes all state agencies. This tree-lined promenade will be located on Congress Avenue between 16th Street and Martin Luther King Jr. Boulevard, and it will serve as the northern gateway to the Capitol Complex with public green space for tourism, events, and festivals.
A NEW FUTURE FOR I-35 Presents new ideas for enhancing and connecting the surface areas of I-35, in conjunction with TxDOT's planned reconstruction of the highway. This year, the Downtown Austin Alliance led an Urban Land Institute panel discussion to scope the capping of I-35’s lanes through downtown. This once-in-a-lifetime opportunity will enhance downtown’s vitality by reconnecting the city’s east and west sides.
WALLER CREEK/PALM DISTRICT PLAN Includes the Waterloo Greenway, Convention Center, Red River Cultural District, 5th Street Mexican American Heritage Corridor, Palm School and Innovation District.
SOUTH CENTRAL WATERFRONT INITIATIVE Guides the next emerging neighborhood of downtown that will develop over the next 20 years. The goal is to ensure that as the area inevitably changes, every increment of change will contribute to making a great place.
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ACKNOWLEDGEMENTS
STATE OF DOWNTOWN AUSTIN 2020
REPORT TEAM Jenell Moffett, Director of Research & Analysis, Downtown Alliance
Jennifer Cote, Communication Coordinator, Downtown Alliance
Gabriel Schumacher, Research Analyst, Downtown Alliance
Erica Hess, Editor, Plume
Vanessa Olson, Strategic Communication Manager, Downtown Alliance Dana Hansen, Communication Manager, Downtown Alliance
Meredith Reshoft, Designer/Creative Director, The Killswitch Collective Capital Printing, Printer
RESEARCH TASK FORCE Charles Heimsath President, Capital Market Research
Sam Tenenbaum Central Texas Market Economist, CoStar Group
Melissa Barry VP, Planning, Downtown Alliance
Mike Kennedy Principal, MK Interests
Christine Cramer Director of Market Research, Visit Austin
Bill Brice VP, Investor Relations, Downtown Alliance
De Peart President and CEO, Downtown Alliance
Casey Burack General Counsel & VP, Government Affairs, Downtown Alliance
Beverly Kerr VP Research, Austin Chamber of Commerce Cole Kitten Division Manager, Austin Transportation Department Ryan Robinson City Demographer, City of Austin Margaret Shaw Economic Redevelopment Program Manager, City of Austin Economic Development Department
Julie Fitch Chief Operating Officer, Downtown Alliance Pam Power VP, Marketing and Communication, Downtown Alliance
Michele Van Hyfte VP, Urban Design, Downtown Alliance Emily Risinger Planning and Urban Design Manager, Downtown Alliance
SPECIAL THANKS AND CREDITS Angelou Economics Austin American-Statesman Austin-Bergstrom International Airport
Cover Photo: © TOD GRUBBS BEE CREEK PHOTOGRAPHY, All Rights Reserved
Downtown Austin Plan, 2011 Downtown Austin Vision, 2018
Austin Business Journal
Greyhill Advisors
Austin Chamber of Commerce
Homeless System Process Triage, 2019
Austin Transportation Department Photo by SAYAKA KUNZE
Downtown Austin Parking Strategy, 2016
JobsEQ
Capital Metro
Live XYZ
CBRE
Movability
City of Austin, Congress Avenue Urban Design Initiative
National Association of City Transportation Officials Report, 2018
CoStar
Nelson\Nygaard State of Texas, Comptroller State of Texas, Office of the Governor, Economic Development & Tourism Texas A&M Transportation Institute Travis County Central Appraisal District U.S. Census Visit Austin
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