STATE OF DOWNTOWN Economic Report / 2021
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TABLE OF CONTENTS 03 Welcome Messages 05 Downtown Seattle 2020 Report Card 08 Economic Competitiveness Economic Report Sponsor 25 Transportation & Access 32 Urban Experience Credit: Andrew Jacob Media STATE OF DOWNTOWN 2021 ECONOMIC REPORT TABLE OF CONTENTS / 01
A ME SSAGE FROM OUR PRE SIDENT & CEO Just a year ago, downtown Seattle was That Seattle spirit is already at work. firing on all cylinders. We ended the prior Many restaurants, retailers and nonprofits decade with record growth, outperforming have creatively shifted their business almost every major city in the country on models during the past year. In the first development, job and population growth. week of 2021, there were roughly a dozen announcements of new business openings Since the onset of the pandemic, we’ve seen downtown and approximately 90 new business dozens of downtown businesses permanently announcements in 2020. close, and our arts, entertainment, tourism and hospitality sectors devastated. Indeed, As we recover, we’re committed to downtowns across the world and the country embracing a new vision for the center of have a unique and daunting set of challenges our city, where everyone feels that they as we emerge from this historic event. belong and everyone has an opportunity to participate and share in the prosperity. The The recovery of our downtown is critical to downtowns that rebuild in this way will be the economic future of our entire city; to more dynamic, desirable and resilient. our robust tax base and quality of life; to our ability to invest in infrastructure; and to Whether you’re a longtime DSA member, provide opportunity for the next generation. potential investor or exploring the benefits of DSA membership, we invite you to join us as The good news is that we are building back we reshape and reengerize this downtown into from a very strong base. We have some of the an even better version of the one we knew in most innovative private sector leaders in the March 2020. world, one of the largest downtown residential populations in the country, and we’re making generational investments in our city. We’ve seen hard times before. Each time downtown Jon Scholes Seattle has faced challenges — whether it be President & CEO the Great Fire of 1889, the 1950s-’60s flight to Downtown Seattle Association the suburbs, or the collapse of the retail core in the early 1990s — we emerged stronger. STATE OF DOWNTOWN 2021 ECONOMIC REPORT WELCOME MESSAGES / 03
LET TER FROM THE MAYOR The year 2020 was a brutal one of unprecedented and historic challenges for our city: a global pandemic, a civil rights reckoning, a climate crisis and an economic crisis that has had a devastating impact on our workers and our local businesses, especially downtown. With the lowest cases and hospitalizations of every major American city, Seattle showed it could lead the way during the pandemic with our collective actions. We began adapting early to respond to the COVID-19 pandemic, establishing a first-in-the-nation small business support program to provide grants to hundreds of struggling businesses, free citywide testing, and assistance to our residents for rent, meals and child care. The challenges ahead are some of the greatest in our city’s history, but 2021 also offers hope with a vaccine. Getting millions of our workers and residents vaccinated will be key to reopening and economic recovery, and Seattle will lead the nation with efforts on equitably distributing vaccines. As we reopen the city, revitalizing and supporting downtown businesses, nonprofits, workers and residents will be key to our long-term economic recovery. I am proud to support the efforts of the Downtown Seattle Association as they work to support their members, ratepayers and stakeholders through the immense challenges brought on by COVID-19. I love this city, and I am confident that we will come back more just and equitable. Stay healthy, Jenny A. Durkan Mayor of Seattle STATE OF DOWNTOWN 2021 ECONOMIC REPORT WELCOME MESSAGES / 04
DOWNTOWN SEATTLE 2020 Report Card LIVE WORK Residential Population Total Number of Jobs 37% increase since 2010 / 2020 estimate: 84,201 37% increase since 2010 / 2020 estimate: 300,375 60% 60% 40% 40% 20% 20% 0% 0% 2010 2012 2014 2016 2018 2020 2010 2012 2014 2016 2018 2020 SHOP PLAY Brick-and-Mortar Retail Jobs Dining, Hotel, Recreation, Arts and 31% decrease since 2010 / 2020 estimate: 6,069 Entertainment Jobs 44% decrease since 2010 / 2020 estimate: 15,282 50% 50% 25% 25% 0% 0% -25% -25% -50% -50% 2010 2012 2014 2016 2018 2020 2010 2012 2014 2016 2018 2020 Sources: data on this page were derived from multiple sources, including CoStar, Esri, Puget Sound Regional Council, Opportunity Insights and the Washington State Employment Security Department. Note that while most jobs data are for March, we used 2Q estimates for 2020 to better capture the impacts of COVID-19. Population data are for July of each year and 2020 population was adjusted downward based on occupancy data from CoStar. STATE OF DOWNTOWN 2021 ECONOMIC REPORT DOWNTOWN SEATTLE 2020 REPORT CARD / 05
5 N Galer St. Mercer St. El l io tt Av UPTOWN SOUTH e . LAKE UNION WEST CAPITOL HILL DENNY Broadway BELLTOWN TRIANGLE RETAIL CORE WEST FIRST EDGE HILL WATERFRONT Downtown Is a Family PIONEER of Neighborhoods SQUARE CHINATOWN- INTERNATIONAL DISTRICT Downtown Seattle is a collection of 12 neighborhoods that account for approximately half of all the economic activity in Seattle. Downtown is home to some of the densest neighborhoods in the Pacific Northwest. In fact, more than one in 10 Seattleites calls downtown home. During the COVID-induced SODO downturn, these areas of residential density have been crucial to the survival of the street- level businesses that make downtown a vibrant urban center. S. Lander St. STATE OF DOWNTOWN 2021 ECONOMIC REPORT NEIGHBORHOOD MAP / 06
From the vibrancy of Pike Place Market to the blue waters of Elliott Bay, there are so many things to love about downtown Seattle— including its resilience. In the face of the pandemic’s harsh impact, DSA continues to strive to ensure the health of the city’s urban center, and the quality of life within it. The future of downtown remains bright, and we can’t wait to be reunited with it once again. lanepowell.com | 800.426.5801 STATE OF DOWNTOWN 2021 ECONOMIC REPORT ADVERTISEMENT / 07
Economic Competitiveness Murals on First Avenue STATE OF DOWNTOWN 2021 ECONOMIC REPORT ECONOMIC COMPETITIVENESS / 08
Seattle has been the envy of the nation, adding can least afford it. Hotels, retail, restaurants, arts jobs and residents faster than nearly every major and entertainment have been particularly affected. city most years since 2010. Unfortunately, greater Those industries will likely take years to recover Seattle was the first area in the nation to be to pre-COVID-19 levels of activity. Federal aid and impacted by COVID-19. Because of the growth of downtown Seattle’s residential population of nearly the tech sector and the area’s diverse, talented and 90,000 have been key components in supporting educated workforce, Seattle will have advantages small businesses that reopened. Downtown over other cities in the years ahead. Still, a full neighborhoods saw restaurants and stores spill recovery will likely take two or more years. onto sidewalks and streets over the summer and innovate with tenting and heat to serve customers Without intervention, the economic recovery will through the fall and winter. be uneven. Many of the industries hit hardest are in sectors dependent on foot traffic and visitors. In the section that follows, we look at the With most office employees working from home characteristics that have made downtown and a once-thriving visitor industry decimated by Seattle the economic powerhouse of the region the pandemic, businesses in the downtown core and use these to assess the current health of the face ongoing challenges. This especially impacts downtown economy. people in lower-income job categories — those who Downtown Seattle Is the Heart of the City’s Economy Downtown as a Percent of the City’s Total: Despite being less than 6% of Seattle’s landmass, downtown accounts for approximately half of the economic activity in Seattle, including more than 81% 78% 55% 54% half the jobs, about a third of brick-and-mortar retail sales, more than a third of Office Space Hotel Rooms Jobs Commercial leisure spending (including Inventory Property Value dining) and half the taxes paid by businesses in the city. Downtown businesses 52% 49% 39% 31% contribute 49% of the gross regional product within the city of Seattle. Business Taxes Gross Regional Leisure Spending Brick-and-Mortar (2019) Product (2019) (2017) Sales (2017) Sources: CoStar, Emsi, Esri, Puget Sound Regional Council, Smith Travel Research and Visit Seattle. Figures are for 2020 unless otherwise specified. Leisure spending includes dining, arts, entertainment and recreation. STATE OF DOWNTOWN 2021 ECONOMIC REPORT ECONOMIC COMPETITIVENESS / 09
Working Toward Inclusive Recovery The coronavirus pandemic brought into clear focus ensure that the economic recovery supports the most socioeconomic disparities across our country, state and vulnerable among us and provides opportunities for more city. People of color, the elderly, low-income individuals, people to share in future economic prosperity. people working in service industries and those without As we work to rebuild, we must remove unnecessary access to health resources have proven to be at much barriers to permitting and housing development so more higher risk. people who want to live here can do so. This must be The uprising against racial injustice over the summer met with investments in infrastructure that support our of 2020 further elevated the inequities that exist and growing communities, particularly low- and middle- the work that lies ahead. For downtown to be healthy income families, with greater investment in public schools, and vibrant, we must commit to an inclusive recovery, recreational amenities, and open space. We must fulfill meaning one that welcomes everyone to the city and our promise to complete the Sound Transit 3 package, that provides economic opportunities and social support bring back buses to our streets, and improve the transit for marginalized communities. As the heart of city life, rider experience because we know that transit is the great downtowns should represent and welcome residents, equalizer for accessing jobs and housing. Finally, we employees and visitors of all incomes, races and must elevate our private sector partners who are boldly ethnicities, genders and ages. reinventing ground-floor spaces to increase opportunities for small businesses and entrepreneurs and then support With the rollout of vaccines creating the potential for them by providing a safe and welcoming place to a further reopening of our economy, it is important to conduct business. Downtown’s Most Vulnerable Populations 13,895 8,664 7,853 residents are senior citizens (65+) residents work in the households include someone service industry with a disability 6,044 5,128 4,669 households are below the households have no households receive poverty level internet at home food stamps/SNAP 4,157 1,400 15.4% residents have no health insurance residents do not speak English well of downtown residents who are in the workforce are unemployed Source: Esri Community Analyst. These data are as of July 1, 2020. Note that Esri’s models reflect COVID-19’s estimated impacts for economic statistics but not for demographic statistics. STATE OF DOWNTOWN 2021 ECONOMIC REPORT ECONOMIC COMPETITIVENESS / 10
Myrtle Edwards Park, Waterfront Diversity Index +6 52 -11 change in downtown Seattle downtown’s current downtown Seattle compared diversity index 2010–2019 diversity index score to downtowns nationwide The diversity index represents the likelihood that two persons chosen at random from the same area belong to different races or ethnic groups. It also captures the racial and ethnic diversity of a geographic area in a single number, zero to 100 (a higher score represents a more diverse population). From 2010 to 2019, downtown Seattle’s diversity index increased 6 points from 46 to 52. This is still 11 points lower than the 2019 average of 63 for downtowns nationwide. In the 2020 International Downtown Association Affordability Metrics Vitality Index, downtown Seattle scored high marks for Downtown Seattle percent difference from its economy and vibrancy, on par with New York City nationwide downtown average and San Francisco. Seattle’s center city also improved on its diversity index score over the past decade. However, compared to other U.S. downtowns, Seattle Median Owner-occupied Housing Value 135% scored low on other measures of inclusion, including residential diversity, the share of the population that is Median Rent 55% middle income and home ownership affordability. Area Median Income (2018) 33% Income Spent on Housing and Transportation 9% Source: International Downtown Association, 2020 Downtown Vitality Index STATE OF DOWNTOWN 2021 ECONOMIC REPORT ECONOMIC COMPETITIVENESS / 11
Who Works Downtown? 51% are male and 49% are female 44% have a bachelor’s degree or higher Jobs Are Key to Downtown’s Continued Success 60% are between the ages of 30 and 54 Employment peaked in the first quarter of 2020 with an estimated 348,000 jobs based downtown. After adding 129,000 jobs between 2010 and 2020, downtown lost 45,000 jobs in the second quarter of 2020. This compares to 28,000 15% jobs lost during the Great Recession. While some jobs are identify as Asian coming back, we estimate downtown ended the year with (the fastest-growing employee population approximately 20,000 fewer jobs compared to the first quarter. downtown by race) Most job losses are expected to be temporary. However, with remote working becoming more common and the effects of COVID-19 on transit service, it is uncertain how long it will take before the daytime worker population returns to previous levels. In a September 2020 DSA survey of businesses and 50% travel less than 10 miles organizations in Seattle, nearly half of respondents said that to get to work at least 25% of their employees had already returned to their office or worksite and most expect at least 25% to return by mid-2021. These workers, along with residents and visitors, support a vibrant, diverse array of urban amenities such as restaurants, bars, brick-and-mortar retailers and a lively nightlife scene. 6% also live downtown Downtown has increasingly been a place for people to gather, share ideas and enjoy the benefits of proximity. Amid a pandemic, however, people are cautious about unnecessary time spent outside the home. Many workers express a desire to Source: U.S. Census Bureau (onthemap.ces. return to the office at least a few days per week. Downtown’s census.gov). These represent 2018 figures. return to vibrancy is tied to getting COVID-19 under control and providing safe spaces conducive to the return of urban life and the downtown workforce. STATE OF DOWNTOWN 2021 ECONOMIC REPORT ECONOMIC COMPETITIVENESS / 12
Denny Triangle COVID-19 Impacts Create Uncertainty for Downtown’s Office Market In 2020, downtown Seattle office rents fell by 6% and Despite the pandemic, investors continue to show vacancy increased from 5.4% to 8.7%. Much of the new confidence in the Seattle market. Lab space is in high vacancy was due to new construction as occupancy did not demand. In fact, the vacancy rate for Seattle lab space at decrease. Rent growth is expected to be flat through 2021 the end of 2020 was less than 1%, according to CBRE. The before beginning to climb again the following year. The area also saw some of the highest-priced office deals in the amount of occupied office space downtown is expected nation since the start of the pandemic, including the $652 to continue to increase annually but at a much lower rate million sale of 2+U (Qualtrics Tower). This was the highest than was seen over the past few years. Including new price for a single-asset property in the Puget Sound region construction, vacancy is expected to top out at 11.5% in the and the seventh-largest in the U.S. third quarter of 2021 and remain above 10% until 2024. Source: CoStar STATE OF DOWNTOWN 2021 ECONOMIC REPORT ECONOMIC COMPETITIVENESS / 13
Office Vacancy Office Rent Downtown Seattle (year-end data) Downtown Seattle (year-end data) 15% $50 $40 10% $30 $20 5% $10 0% $0 2010 2015 2020 2025 2010 2015 2020 2025 Actual Forecast Peer-city Comparisons Change in Occupied Office Space Occupied office space downtown grew only slightly in 2020, Net change in occupied square feet yet our center city experienced one of the best performances in downtown Seattle each year among peer downtowns. San Francisco fared the worst, with downtown occupancy decreasing 7.2%. 2010 0.9 M 2011 1.7 M Change in Occupied Square Feet of Office Space 2012 1.1 M Among peer downtowns, year-over-year change, 2020 2013 0.8 M 2014 0.9 M San Francisco -7.2% 2015 3.8 M Austin -5.5% 2016 3.1 M 2017 0.9 M Boston -3.9% 2018 3.3 M Portland -2.8% 2019 2.3 M Denver -2.7% 2020 0.4 M Salt Lake City -2.5% 2021* 0.5 M 2022* 1.6 M Washington, D.C. -1.6% 2023* 1.4 M Atlanta -1.3% 2024* 1.7 M Los Angeles -0.9% 2025* 1.6 M Vancouver, B.C. -0.6% *2021-2025 show forecast data Chicago -0.4% Seattle 0.5% Source: CoStar. The cities were selected based on similarities to Seattle that make them competitive markets (for example, strong growth in tech talent). For consistency, CoStar’s “multifamily” downtown boundary was used for each city except for Seattle, where DSA’s boundary was used. Note that these are preliminary numbers. STATE OF DOWNTOWN 2021 ECONOMIC REPORT ECONOMIC COMPETITIVENESS / 14
Downtown Office Construction With an inventory of 79 million square feet of office space, downtown supports a dynamic economy. This sector has experienced a net gain of 17 million square feet since 2010. This has expanded the downtown office inventory by 27% over that period. Currently, there are 3.1 million square feet of office space under construction downtown. This is about on par with the average over the past 10 years. Despite this new supply, downtown occupancy rose from 86% in 2010 to 91% by the end of 2020. In addition to space under construction, there is more than a half-million square feet in demolition, shoring and excavation phases in preparation for future development. An additional 7.7 million square feet are in earlier stages of development (“land-use issued” and “predevelopment” phases) and do not yet have building permits. Rainier Square Office Space Square Footage by Status and Completion Year Completed 2010 1,169,000 Under Construction 2011 1,622,000 Demolition, Shoring and Excavation 2012 534,000 Land-use Issued 2013 409,000 Predevelopment 2014 63,000 The numbers next to each bar indicate the 2015 2,593,000 total square feet of office space completed or scheduled for completion each year. 2016 2,521,000 Please note that those in predevelopment have uncertain timelines and do not yet 2017 3,621,000 have land-use or building permits. 2018 500,000 2019 4,511,000 2020 1,198,500 2021 2,543,500 2022 2,022,000 2023+ or TBD 6,868,757 Source: DSA 2020 Year-end Development Guide STATE OF DOWNTOWN 2021 ECONOMIC REPORT ECONOMIC COMPETITIVENESS / 15
A Hot Housing Market Cools Credit: Alex Mulyar The Cobb Building The past decade was one of incredible the center city had fewer occupied decreased supply and increased growth in the residential sector. apartments at year-end than at the demand and prices. Approximately 45% of apartment start. Downtown lost 1,594 apartment One outcome of lower rents and units downtown were built since households in 2020, with vacancy condo prices downtown is that they 2010 and yet vacancy was at a record rising to 10.4%. Suburban markets may become more affordable and low of 5% by the end of 2019. High saw a modest increase in occupancy therefore accessible to a more diverse demand drove rent increases faster and a slight increase in vacancy, spectrum of individuals. Younger in Seattle than in most U.S. cities, mostly driven by new construction. artists, middle-income families and though this was tempered somewhat The condo market downtown was working-class households may find by unprecedented residential also not immune to a downturn. downtown more affordable in the construction bringing new supply to Through the summer of 2020, wake of geographic shifts caused the market. downtown experienced increases in by COVID-19. In downtown, there are some signs the number of listings and decreases *2000 is as far back as this data set goes. of residential demand slowing down. in closed sales and prices while For the first time since at least 2000*, other areas of the Puget Sound saw Annual Change in Occupied Apartment Units Downtown Seattle 6,000 4,000 2,000 0 -2,000 2000 2005 2010 2015 2020 2025 Sources: Costar, Northwest Actual Forecast Multiple Listing Service STATE OF DOWNTOWN 2021 ECONOMIC REPORT ECONOMIC COMPETITIVENESS / 16
Percentage of Units Vacant at the End of Each Year Downtown Seattle 20% 15% 10% 5% 0% 2000 2005 2010 2015 2020 2025 Actual Forecast Source: CoStar Residential Units by Current Status and Delivery Year Completed 2010 829 Under Construction 2011 202 Demolition, Shoring and Excavation 2012 1,875 Land-use Issued 2013 2,446 Predevelopment 2014 3,292 The numbers next to each bar indicate 2015 3,600 the total units completed or scheduled for completion that year. Please note that 2016 2,199 those in predevelopment have uncertain timelines and do not yet have land-use or 2017 5,723 building permits. 2018 3,780 2019 3,195 2020 2,020 2021 7,262 2022 4,104 2023+ or TBD 20,024 Source: DSA 2020 Year-end Development Guide STATE OF DOWNTOWN 2021 ECONOMIC REPORT ECONOMIC COMPETITIVENESS / 17
Peer-city Comparisons In 2020, downtown Seattle’s apartment rents decreased more than all of our peer downtowns except for Boston. All but Atlanta and Vancouver, British Columbia saw decreasing rents. In terms of the change in the number of occupied units, roughly half of the downtowns saw decreases and half increases. The number of occupied units in downtown Seattle decreased 3.1%. Downtown San Francisco fared the worst, with a 5.4% decrease in occupied units. Onni South Lake Union Year-over-year Change in Year-over-year Change in Apartment Apartment Rents 2019-2020 Occupancy 2019-2020 Percentage change in rent among Percentage change in number of units peer downtowns occupied among peer downtowns Boston -13.3% San Francisco -5.4% Seattle -11.1% Washington, D.C. -4.5% Chicago -10.2% Boston -4.2% Los Angeles -9.4% Seattle -3.1% Washington, D.C. -9.4% Chicago -2.1% Portland -6.6% Los Angeles 0.3% San Francisco -5.7% Vancouver, B.C. 1.7% Denver -4.5% Denver 1.8% Austin -2.9% Austin 2.0% Salt Lake City -1.0% Salt Lake City 2.2% Atlanta 0.6% Portland 2.4% Vancouver, B.C. 7.3% Atlanta 4.6% Source: CoStar. The cities were selected based on similarities to Seattle that make them competitive markets (for example, strong growth in tech talent). For consistency, CoStar’s “multifamily” downtown boundary was used for each city except for Seattle, where DSA’s boundary was used. Note that these are preliminary numbers. STATE OF DOWNTOWN 2021 ECONOMIC REPORT ECONOMIC COMPETITIVENESS / 18
Ben Paris, The State Hotel A Visitor Industry Devastated by COVID-19 Hotels Downtown is the center of the visitor industry for Seattle, with 37% of the Airbnb listings With an incredible natural backdrop, outstanding in the city, 78% of the hotel rooms and more visitor amenities and an array of things to see and than 80% of the hotel revenue. However, due do, Seattle has long been the Northwest’s leading to COVID-19 impacts, hotel revenue was down destination for tourists and conventioneers. The more than 90% nearly every day through the loss of this business due to COVID-19 has had a spring and summer of 2020. As many as 29 devastating economic impact. Before the pandemic, hotels closed at least temporarily. By June, the 15 million people visited Pike Place Market each year number of units listed on Airbnb in Seattle had and 12 million visited the Seattle Center, where more decreased by 26% year-over-year. than 5,000 events were held annually. Locals, along with visitors, have enjoyed downtown’s unmatched The hotel sector is expected to take a long time entertainment options, including art galleries, to recover from the downturn, not returning to performances, museums, professional sporting events 2019 levels until 2023 or later. and myriad dining options. Sources: Airbnb, Pike Place Market, Seattle Center, Visit Seattle and Smith Travel Research STATE OF DOWNTOWN 2021 ECONOMIC REPORT ECONOMIC COMPETITIVENESS / 19
Hotel Demand (Nights Sold) Hotel Revenue Downtown Seattle Downtown Seattle 5M $1B 4M $750M 3M $500M 2M $250M 1M 0M $0M 2012 2014 2016 2018 2020 2012 2014 2016 2018 2020 Actual Forecast Sources: Visit Seattle and Smith Travel Research Thompson Seattle, West Edge Downtown Hotel Occupancy Compared to Peer Cities July 2019 vs. 2020 90% 91% 89% 89% 89% 87% 86% 84% 81% 74% 74% 34% 36% 31% 31% 26% 28% 28% 23% 20% 15% 17% Seattle Vancouver, B.C. Austin Boston Portland Nashville Denver San Francisco San Diego Atlanta Los Angeles 2019 2020 Sources: Visit Seattle and Smith Travel Research. Cities selected from those that Visit Seattle considers Seattle’s peer downtowns. STATE OF DOWNTOWN 2021 ECONOMIC REPORT ECONOMIC COMPETITIVENESS / 20
Hotel Jobs Downtown Seattle Jobs at downtown hotels decreased 8,000 by approximately 4,000 in the second quarter of 2020 due to furloughs and layoffs. This represents a 6,000 loss equivalent to almost half the estimated 2019 hotel employment 4,000 downtown. 2,000 Source: Puget Sound Regional Council. Note that the 2020 figure was estimated using data from PSRC and the Washington State Employment Security Department. While PSRC figures are for 0 March of each year, we estimated 2020 using 2010 2012 2014 2016 2018 2020 data from April to better capture the effects of COVID-19. The 2013 jobs data were unavailable and were therefore interpolated. citizenM, South Lake Union STATE OF DOWNTOWN 2021 ECONOMIC REPORT ECONOMIC COMPETITIVENESS / 21
Credit: Port of Seattle The 2020 Seattle cruise season was canceled with a loss of roughly $900 million in economic impact and 5,500 jobs. Smith Cove Cruise Terminal at Pier 91 Cruise Ships Cruise Passengers Seattle serves as the leading U.S. Port of Seattle West Coast port for Alaska cruises. The Port of Seattle has hosted more 2010 961,698 than 1 million passengers annually since 2017* and is homeport to 2011 885,949 the largest ships on the West 2012 934,900 Coast, including Norwegian Bliss, 2013 870,994 Norwegian Encore and Ovation of the Seas. The major cruise lines serving 2014 823,780 Seattle include Carnival, Celebrity, 2015 898,032 Holland America, Norwegian 2016 983,539 Cruise Line, Oceania, Princess and Royal Caribbean. 2017 1,071,594 2018 1,114,888 *Due to the COVID-19 pandemic, all 2020 sailings 2019 1,210,722 were canceled. 2020 0 Source: Port of Seattle STATE OF DOWNTOWN 2021 ECONOMIC REPORT ECONOMIC COMPETITIVENESS / 22
Washington State Convention Center Addition, Summit building Looking Ahead: The Washington State Convention Center Addition The Washington State Convention Center has been a Opening in 2022, WSCC’s Summit building will be powerful economic driver for our community. Since its transformative, adding an estimated $260 million in annual opening in 1988, people from outside Washington have visitor spending and 3,900 direct and indirect jobs when spent over $6.9 billion locally when coming to WSCC fully operational. The Addition is also supporting as many events. In 2019, this spending added an average of as 6,000 union jobs during construction, including an $986,062 per day to Washington’s economy and directly estimated 900 apprentices. Located just one block northeast generated some 3,616 jobs (full-time equivalent). of the existing Arch building, Summit will double the capacity of the center’s offerings. Convention Attendance Washington State Convention Center At least 76 future citywide 2010 390,000 conventions previously booked at the 2011 420,000 Washington State Convention Center 2012 422,000 have canceled, resulting in a loss of at least $512 million in economic impact. 2013 404,000 Cancellations represent a definite loss 2014 420,000 to the region because of Seattle’s lack 2015 380,000 of available future dates and the fact that we have a smaller convention 2016 380,000 center compared to other major cities. 2017 383,000 2018 400,000 2019 390,000 2020* 95,000 *2020 figure is an unofficial estimate. Sources: Pine Street Group, Washington State Convention Center STATE OF DOWNTOWN 2021 ECONOMIC REPORT ECONOMIC COMPETITIVENESS / 23
Credit: Urban Villages RailSpur, Pioneer Square Downtown Development In conjunction with the State of Downtown Economic new projects announced in 2020 and some were canceled Report, the Downtown Seattle Association publishes a or put on hold. Safety measures also delayed some projects development guide each year to summarize construction underway. However, Seattle remains one of the top and investment activity downtown. These statistics are a markets in the nation for new construction, once again measure of optimism and confidence in the future of the outpacing all other U.S. cities in Rider Levett Bucknall’s downtown economy. crane index (July 2020). COVID-19 has so far affected downtown construction activity less than many other industries. There were fewer Data Snapshot new residential units new hotel rooms square feet of new office space In 2020, downtown developers completed 21 projects, including: 2,020 560 1.2M As of December 2020, 54 projects were under construction, including: 8,840 369 3.1M For the most up-to-date information, please visit: downtownseattle.org/development Source: DSA 2020 Year-end Development Guide STATE OF DOWNTOWN 2021 ECONOMIC REPORT ECONOMIC COMPETITIVENESS / 24
Transportation & Access Credit: @transit_culturalism South Jackson Street STATE OF DOWNTOWN 2021 ECONOMIC REPORT TR ANSPORTATION & ACCESS / 25
As the employment center of the region, it is essential Credit: Sound Transit to have a variety of options to get to, through and around downtown. Safe and reliable transportation is a priority for DSA. Before COVID-19, Seattle had some of the highest transit demand in the nation. COVID-19, however, has impacted how people move about the city. Preferences for transit and shared mobility options have given way to a desire for personal space. Between diminished transit service, social-distancing requirements limiting capacity, and a large share of the population expressing apprehension about riding transit, bringing the downtown workforce back to 2019 levels of ridership will be a challenge. Shifting to driving is simply not an option and is not consistent with Seattle’s climate goals. What is needed for continued economic prosperity for downtown and the region is a smart, forward-looking, multi-pronged mobility strategy. In the section that follows, we look at how transportation to and around downtown has changed over the past year and explore some of the challenges and opportunities ahead. LINK Light Rail COVID-19 Had a Profound Impact on Transportation in 2020 Seattle was the first major metro area in Apple Mobility Index the nation impacted by COVID-19. On Average percent change from Jan. 13, 2020 March 5, King County recommended that anyone who could work from home do 48% 2020 Q2 so until at least the end of that month. This led to a massive contraction in the number of people moving around the city. 2020 Q3 19% 14% 2020 Q4 When Washington Gov. Jay Inslee issued 1% a statewide “Stay Home, Stay Healthy” -7% Source: Apple Mobility Index. order on March 23, Seattleites were already Data indexed to where Jan. 13 = 100. Based on phone driving 45% less, taking transit 81% less -27% searches for directions by frequently and walking 41% less, according mode of travel. Note that this data is particular to users of to the Apple Mobility Index (which uses a -63% Apple products and therefore Jan. 13, 2020 baseline). When Seattleites -67% may not be representative of the entire population. emerged from their homes again, driving -77% was the dominant mode of travel. By December 2020, transit ridership remained DRIVING TRANSIT WALKING down nearly 70% compared to the baseline, while driving and walking were near pre-pandemic levels. STATE OF DOWNTOWN 2021 ECONOMIC REPORT TR ANSPORTATION & ACCESS / 26
Washington State Ferry, downtown Seattle Transportation Changes Year-over-year Average daily percent change (2019–2020) I-5 (Downtown) King County Metro Highway 99 Tunnel Washington State Ferries Amtrak (Cascades) (Systemwide) (Downtown) -16% -16% -34% -54% -57% -62% -65% -68% -65% -71% -76% -81% -89% -92% Q2 Q3 Q4 -95% In 2020, transit ridership, including ferries and long-distance rail, dropped 50% or more Sources: Seattle Department according to each agency’s data, but has started to increase again. Driving showed the of Transportation, Washington State Department of fastest return to normal by the end of the year, with vehicular traffic on I-5 just north and Transportation COVID-19 south of downtown down only 16%. According to the Seattle Department of Transportation, Multimodal Transportation System Performance Dashboard vehicle traffic counts on downtown surface streets are starting to tick up again as well. Having been down approximately two-thirds from pre-COVID-19 levels in April and May, surface traffic was down roughly a third from 2019 levels toward the end of 2020. STATE OF DOWNTOWN 2021 ECONOMIC REPORT TR ANSPORTATION & ACCESS / 27
A Shift Toward More Remote Work Many employees based downtown are currently working the office after the pandemic is over. In addition to worker from home due to COVID-19. Cell phone data aggregated preferences and a shift in office culture, COVID-19-related by Placer.ai showed that weekday daytime visits to school closures and lack of daycare options could keep the neighborhood by those who work downtown have employees from returning to their offices in the near term. consistently been down about 80% compared to pre- The current work-from-home period has some clear pandemic levels. In a Commute Seattle survey, 89% of downsides and a mix of in-office and remote work is likely employers said that some portion of their employees are in the future. A study published by Cushman & Wakefield working remotely, with nearly three-quarters saying that shows that not all people want to work from home and between 81% and 100% of their employees were doing so among those that do, most prefer a hybrid model. Working as of May 2020. In that same survey, 50% of employers exclusively from home, office workers feel disconnected, anticipated a post-COVID-19 work culture where their and there are fewer opportunities, particularly among new employees would work from home at least a few times hires who benefit from in-person mentoring when working per week. in an office setting. Cushman & Wakefield’s research also This is in line with national surveys of employers as well showed that work-from-home scenarios are likely to have as employees. In a meta-analysis of several national office only a slight impact on office absorption as offices increase employee preference surveys, CoStar found that 21% of space per employee and utilize more square footage for employees favor a fully remote work environment, 55% flexible meeting spaces. prefer partially remote and 25% prefer to work entirely at Remote Work Culture Among Seattle companies 1% Every day 9% A few times 9% a week 41% About once 15% REMOTE WORK FREQUENCY a week 7% Pre-COVID-19 A few times 27% a month Post-COVID-19 9% Questions asked: About once 17% a month Which best describes your organization’s remote work culture prior to COVID-19? 5% After COVID-19, what do you anticipate your organization’s remote work culture to be? 27% Never 6% 4% Unsure 23% Source: Commute Seattle STATE OF DOWNTOWN 2021 ECONOMIC REPORT TR ANSPORTATION & ACCESS / 28
How Workers Commuted Before COVID-19 In 2019, 74% of workers came downtown by some other means than driving alone. That number had been steadily rising for more than a decade. The largest share (46%) came by transit. Pre-COVID-19 Commute Choices Downtown Seattle workers 3% 3% 6% 7% Transit Drive Alone Carpool & Vanpool 9% 46% Walk Telework Bike Other 26% Source: Commute Seattle 2019 Commuter Mode Split Survey. Note that this data does not include workers who live downtown but commute to locations outside downtown; nor does it include the SoDo neighborhood. Figures are based on those who begin work between 6–9 a.m. on weekdays. Credit: Urban Villages Streetcar, Pioneer Square STATE OF DOWNTOWN 2021 ECONOMIC REPORT TR ANSPORTATION & ACCESS / 29
Credit: Sound Transit U District Light Rail Station The Need to Invest in a Variety of Transportation Options In the face of the pandemic and beyond, Seattle and are approximately $200 million less than the pre-COVID-19 the region are still actively investing in a world-class forecast. Sound Transit projects a revenue gap of $6.1 transportation system to meet the future needs of the billion from 2020 through 2041. city. As workers return to their offices, there must be There is some positive news. Light-rail stations opening viable options other than driving alone. Before COVID-19, in the University District, Roosevelt and Northgate will nearly half of downtown employees took transit to work. connect these neighborhoods to downtown as early Shifting even a quarter of these trips to cars is not a viable as fall 2021. New stations in Bellevue will allow for a solution. Downtown has a limited supply of parking and 24-minute ride from downtown Bellevue to Westlake roadways were already at capacity pre-COVID-19. The Station by 2023 and commuters from Lynnwood will be closure of the West Seattle Bridge due to structural issues able to access downtown by light rail starting in 2024. has decreased road capacity further. Some city projects are Also, while funding issues could cause some delay, the getting pushed out into the future, such as the Center City implementation of Sound Transit 3 is still on the horizon, Connector streetcar along First Avenue. Without additional with opportunities to create greater, long-term access resources to increase service levels and ensure riders have across the region. Passed in 2016, ST3 is the region’s enough personal space, the system cannot sufficiently largest investment in our transportation future. It will bring back downtown’s workforce. dramatically increase connectivity to, through and within When we move to a post-COVID-19 world, there may downtown. The levy will fund an additional 62 miles of initially be trepidation around transit use. Other light-rail lines, expand bus rapid transit, increase Sounder commuting options such as biking and walking can help train capacity and add a second downtown transit tunnel fill the gaps. to serve six new stations. In addition, 88% of Seattleites recently voted to fund 150,000 hours of transit service Budget constraints may also limit the ability of transit over the next six years through the Seattle Transportation agencies to provide adequate service as workers begin to Benefit District. return downtown. The 2021-22 King County budget noted that projected sales-tax revenues for Metro in 2021-2022 STATE OF DOWNTOWN 2021 ECONOMIC REPORT TR ANSPORTATION & ACCESS / 30
It is important to provide a variety of safe, reliable ways to travel. Long-term trends favor high transit usage. However, in the wake of the pandemic and with restricted road and transit capacity, other options must also be explored. This could include flexible remote-work options. Encouraging walking and biking by providing ample welcoming safe public spaces would also encourage the adoption of these alternatives. Spreading out the workday with Help your business get ready for the future of staggered start times or compressed workweeks is commuting. DSA partner Commute Seattle another potential way of bringing workers back safely provides free consultations and resources in the short term while transportation capacity is to businesses on topics like transportation limited. In the long term, robust transit funding to benefits, telework policies, carpool and vanpool sustain and grow Seattle’s transit service will help programs and supporting active commutes. ensure a downtown and a region that are poised for Visit commuteseattle.com to learn more and recovery and continued investment. connect with their transportation specialists. STATE OF DOWNTOWN 2021 ECONOMIC REPORT TR ANSPORTATION & ACCESS / 31
Urban Experience Pike Place Market STATE OF DOWNTOWN 2021 ECONOMIC REPORT URBAN EXPERIENCE / 32
Holidays at Westlake Park Downtown has a strong economic foundation. Downtown is the center of Seattle’s cultural In recent years, the center city has seen life. Before COVID-19, downtown saw more growth and investments that position Seattle foot traffic, more park users and more tourists for resiliency. Downtowns are strong due than anywhere else in the city. While the to their density, access to public spaces and pandemic created a major economic setback, diversity of residents compared to car- we are confident that downtown will remain centered neighborhoods. Downtown Seattle’s an attractive place to visit, shop, live, work, walkability and accessibility make it a place play and invest. that a large cross-section of society can In the section that follows, we look at what access and enjoy. To ensure the resilience makes a vibrant urban experience and how of downtown and the region, these assets downtown Seattle is performing against should be protected and built upon. Ongoing these metrics. attention to affordability, public amenities and safety are critical. STATE OF DOWNTOWN 2021 ECONOMIC REPORT URBAN EXPERIENCE / 33
Pier 62, Seattle waterfront Who Lives Downtown? Downtown Demographics Downtown Seattle has evolved into one of the most dynamic urban centers in the country. During the past decade, a prospering job market, a beautiful 84,201* 37 natural environment and vibrant shopping, arts, population median age restaurant and cultural scenes attracted record numbers of new residents. While growth slowed in 2020 due to COVID-19-related factors, the downtown core is expected to remain an attractive place to 1.4 $82,586 average household size median household income live in the years to come. Today more than one in 10 Seattleites — 84,000 people — live in the center city. The following is a snapshot of who makes downtown *Our downtown total population estimate from Esri was their home. Please note that all statistics on adjusted using residential occupancy data from CoStar to downtown population and households are estimates account for changes due to COVID-19. for July 1 of each year. Given the speed and severity Source: Esri Community Analyst of the COVID-19 crisis, the data inputs used for these estimates may not yet capture the full impact of the pandemic. STATE OF DOWNTOWN 2021 ECONOMIC REPORT URBAN EXPERIENCE / 34
Educational Achievement While the city of Seattle ranks the Among downtown Seattle residents, age 25+ highest in the nation for educational attainment, according to U.S. Census Bureau data, the downtown population scores even higher on education than the city or county. No High School Diploma 5% High School Graduate 8% Some College 19% Bachelor’s Degree 37% Advanced Degree 31% Credit: Seattle University Children Under 18 Downtown Seattle 2,022 2010 More than 5,500 children under 18 live downtown. In the past decade, school- 1,637 2020 aged children (ages 5-17) increased by 168%. Downtown has the densest and fastest-growing child population in 1,252 the city but, is the only neighborhood 966 without its own public school. 673 543 422 362 Source: Esri Community Analyst AGE 0–4 5–9 10–14 15–17 STATE OF DOWNTOWN 2021 ECONOMIC REPORT URBAN EXPERIENCE / 35
Households by Income Downtown Seattle
Fifth & Pine COVID-19 Had a Profound Impact on the Urban Environment Loss of Foot Traffic Means the Loss of Business Business Closures COVID-19 led to the closure of many businesses downtown • According to a study by Yelp, more than 4,500 businesses and across the region. In DSA’s Business Outlook Survey in the Seattle Metro area had closed between March and conducted in May and September, restaurants and retail April. By the end of August, that number was still over were hit particularly hard and were more likely than those 3,000, with 59% being permanent. in most other industries to express concern about having • DSA has tracked more than 220 permanent street-level to close locations or pay rent. These industries, along with business location closures in Seattle in 2020, including arts, entertainment and hotels, also said it would take more than 160 downtown alone.* longer to bring employees back and become profitable than those in other industries represented in the survey. • Despite a decline in foot traffic downtown, roughly 90 businesses overcame all odds to open new storefronts in 2020. *Note that this count refers to specific brick-and-mortar locations. Some of these businesses shifted to other models such as online and delivery and some may still have open locations downtown or elsewhere. While it’s assumed that the majority of these locations closed due to the pandemic, there may be other reasons for business closures. DSA’s business closure tracking is not a complete inventory. Rather, it is primarily based on news reports, announcements by individual businesses, and listings and direct observation of spaces that have gone up for lease. STATE OF DOWNTOWN 2021 ECONOMIC REPORT URBAN EXPERIENCE / 37
Creative Solutions in the Face of Crisis Economic recovery could be a two- or three-year time horizon, but actions can be taken now to sustain downtown’s treasured mix of amenities and ensure a thriving urban core. Support for small business is essential. Creative adaptation of shared public space is key to addressing the economic effects of the pandemic and impacts of social isolation. Also, maintaining outreach, clean and safe services, which the DSA provides through the Metropolitan Improvement District, are a foundation for recovery and renewal. Below are just a few of the creative responses that emerged in 2020. Takeout and Delivery As COVID-19 impacted the ability to serve large groups of patrons with the same density, businesses and nonprofits shifted gears. Some restaurants enhanced delivery services and added take-out options and to-go windows for food and cocktails. Some offered products that were not previously part of their business model. And some began using their kitchens to make food for those in need. Credit: FareStart Outdoor Seating Many restaurants added outdoor seating. Some brought shelters by way of tents, canopies or plexiglass. Others experimented with dining bubbles. In response to the impacts of COVID-19 on local businesses, the Seattle Department of Transportation has issued special permits allowing for expanded use of sidewalks and street space by restaurants. At the start of 2021, there were 61 downtown restaurants with these temporary outdoor seating permits. DSA’s Park Ambassadors spaced out tables and chairs for social distancing and added spacing indicators for food truck lines. Pike Place Market STATE OF DOWNTOWN 2021 ECONOMIC REPORT URBAN EXPERIENCE / 38
Through the work of DSA and others, numerous murals were created in downtown neighborhoods: 38+ 53+ 50+ 53+ 39+ Belltown Capitol Hill Chinatown-ID Pioneer Square Retail Core Local artist, Carina at Sixth & Pine Urban Art DSA helped coordinate corporate and private funding to hire artists and create many storefront murals on boarded-up buildings during business shutdowns. The murals added a touch of vibrancy, creativity and positivity and helped to deter graffiti and damage while stores were closed. With these shutdowns, there was more than an acre’s worth of plywood spread across the facades of businesses in the Pike-Pine corridor alone. Photo credit: Matt McDonald Street art, downtown Seattle STATE OF DOWNTOWN 2021 ECONOMIC REPORT URBAN EXPERIENCE / 39
Tougo Coffee, First Hill A Changing Retail Landscape Assuming that downtown followed the trends for Downtown’s Retail Real Estate King County, the center city lost an estimated $103 Downtown currently has 10.3 million square feet of retail million in taxable retail sales in 2020 (a 5% drop for the space, with nearly a half million more under construction. year). We also estimate (based on county trends) that After achieving a record low of 1.7% in 2019, downtown’s approximately 4,400 brick-and-mortar retail jobs were retail vacancy is estimated to have reached 2.5% by the end lost downtown in the second quarter, though some of 2020 and rent growth slowed to a halt. of those have come back. This was after downtown had seen a 5% increase in brick-and-mortar retail employment in 2019. Retail Rent Retail Rent Vacancy Downtown Seattle Downtown Seattle $50 4% $40 3% $30 2% $20 1% $10 $0 0% 2010 2015 2020 2025 2010 2015 2020 2025 Actual Forecast Sources: Esri, Opportunity Insights, Puget Sound Forecaster, Puget Sound Regional Council. STATE OF DOWNTOWN 2021 ECONOMIC REPORT URBAN EXPERIENCE / 40
Peer-city Comparisons Change in Occupied Square Feet Seattle was about on par with other of Retail Space downtowns nationally for retail Among peer-city downtowns, performance. Retail occupancy was either year-over-year in 2020 flat or down in all of these downtowns. Overall, they fared somewhat worse than their metro areas but, retail struggled at Austin -2.1% both the downtown and metro levels. Denver -2.0% Washington, D.C. -1.8% Source: CoStar. The cities were selected based on similarities to Seattle that make them competitive markets (for example, San Francisco -1.6% strong growth in tech talent). For consistency, CoStar’s “multifamily” downtown boundary was used for each city Salt Lake City -1.6% except for Seattle, where DSA’s boundary was used. Note that these are preliminary numbers. Portland -1.2% Los Angeles -1.0% Seattle -0.8% Atlanta -0.4% Chicago -0.3% Vancouver, B.C. -0.1% Boston 0.0% Nordstrom flagship store, Seattle STATE OF DOWNTOWN 2021 ECONOMIC REPORT URBAN EXPERIENCE / 41
The Paramount Theatre Arts, Entertainment and Restaurant Industries Were Hit Hard in 2020 Parts of the economy have already started to reopen with new protocols in place to ensure safety for workers and customers. Nevertheless, national polling and evidence from other areas that have reopened show that — regardless of the level of reopening — the pandemic will continue to have a depressing effect on the economy, particularly for sectors related to travel or in places where people congregate such as fitness centers, restaurants, hotels, sports, arts and entertainment venues. STATE OF DOWNTOWN 2021 ECONOMIC REPORT URBAN EXPERIENCE / 42
Job Impacts Food-Service Jobs While many of the jobs lost have already started Downtown Seattle coming back, COVID-19 shutdowns had a profound impact on these industries. There were approximately 25,000 13,700 job losses among downtown food-service workers in the second quarter of 2020. This is the 20,000 equivalent of approximately 60% of the total food- service jobs downtown in 2019. Center city jobs in arts, 15,000 entertainment and recreation industries decreased by roughly 6,300 in the second quarter, the equivalent of 10,000 approximately three-quarters of the employment in these industries downtown in 2019. 5,000 0 2010 2012 2014 2016 2018 2020 Economic Impacts to the Arts Arts, Entertainment and Recreation Jobs Downtown Seattle Nearly all arts organizations canceled programs due to COVID-19 and a majority called off annual fundraisers, 10,000 a critical source of revenue for these organizations. ArtsFund surveyed its members in March 2020 and projected that Puget Sound-area arts organizations 7,500 would see the following as a direct result of COVID-19: 5,000 NEARLY AS MUCH AS 5,000 $135M workers furloughed in lost revenue in 2020 2,500 or laid off 0 2010 2012 2014 2016 2018 2020 Source: Puget Sound Regional Council. Note that the 2020 figure was estimated using data from PSRC and the Washington State Employment Security Department. While PSRC figures are for March of each year, we estimated 2020 using data from April to better capture the effects of COVID-19. The 2013 jobs data were unavailable and were therefore interpolated. STATE OF DOWNTOWN 2021 ECONOMIC REPORT URBAN EXPERIENCE / 43
COVID-19 Heightened Challenges Facing Downtown’s Urban Environment Before downtown can return to viability, some key challenges must be addressed. Public spaces must feel accessible, safe and welcoming to everyone. Before COVID-19 and the civil unrest triggered by the murders of George Floyd, Breonna Taylor and others, the issue of homelessness nearly always topped the list of concerns in downtown stakeholder surveys, along with transportation and housing affordability. Recently, there has been a notable increase in the number of people citing concerns about public safety as well. Violent Crime in Downtown Seattle Includes aggravated assault, homicide, rape and robbery Looking north from Beacon Hill 1,936 1,955 1,835 A Safe Urban Environment for Everyone 1,697 Seattle’s criminal-justice and behavioral-health systems are fractured and fail to protect all Seattleites, deter crime, 1,541 support, or help those who become trapped in a cycle of 1,486 crime, arrest and release. In the face of a public-health crisis, this puts downtown small businesses in further jeopardy. Concerns over personal safety are compounding concerns about returning to the office. Citywide and downtown polling shows that Seattleites believe there is an urgent need to help people struggling in crisis on our streets. In this environment, downtown is in a fragile state and without action, this could have long-term impacts. Without a cohesive solution, downtown has seen an increase in reports of violence, theft, vandalism and individuals in crisis. All of these make the neighborhood feel less safe. The increase in violent crime is particularly disturbing. Between 2015 and 2020, these crimes increased by 23%. As downtown reckons with the current health and economic crisis and continued social injustice, our city leaders must come together to forge a way that allows Seattle to be a model for cities around the world by becoming a safe and 2015 2016 2017 2018 2019 2020 welcoming place for everyone and an attractive destination for visitors, residents and investment. Source: City of Seattle STATE OF DOWNTOWN 2021 ECONOMIC REPORT URBAN EXPERIENCE / 44
DSA Outreach Team near Western Avenue Seattle Continues to Face a Growing Homeless Crisis A January 2020 point-in-time count conducted by All As a region, we must address our growing homelessness Home King County tallied 11,751 individuals experiencing crisis. The city of Seattle and King County are moving homelessness in King County — a 5% increase over 2019. forward together on plans to merge operations and policy- Roughly half of those were sleeping outside, mostly within making for homelessness services. This is a much-needed the city of Seattle. step toward housing the incredible number of people experiencing homelessness in Seattle and King County. The need has only gotten more urgent in the face of a However, this work has only begun. We can’t lose focus public-health crisis. As COVID-19 outbreaks created fear on what’s happening downtown, where hundreds sleep of sleeping in shelters and capacity was limited due to outside on any given night. A sustainable solution requires social-distancing requirements, the number of tents working together on many fronts. This includes increasing throughout downtown’s neighborhoods multiplied coordination, diversion and prevention, state and regional dramatically. By the end of 2020, the number of tents investment, and increased housing supply. downtown had increased to more than three times the highest previous record. STATE OF DOWNTOWN 2021 ECONOMIC REPORT URBAN EXPERIENCE / 45
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