Following a year that saw sharp drops in consumer and resident activity throughout downtown Austin, the city’s central economic and cultural district is poised for recovery on several fronts heading into the latter half of 2021 and beyond, according to new analyses from the Downtown Austin Alliance. “The much-anticipated light at the end of the tunnel is burning brightly for Austin and downtown because of the adaptability we have witnessed from business owners, the hospitality industry and signs pointing to a record-setting 2021 for the development of Class A office space in downtown,” DAA President and CEO Dewitt Peart said during an April 21 videoconference. The DAA’s outlook for sustained growth projected in its 2021 annual report comes after a year that saw business and entertainment venue patronage, tourism, and in-person office work and occupancy plummet throughout the approximately 1,100-acre Austin downtown, according to DAA Director of Research and Analysis Jenell Moffett. “Not only is it the central business district, it’s where you hear live music; it’s where you attend your favorite concert or show; it’s where you eat at your favorite restaurant … and the list goes on and on,” she said. “Downtown is truly a place for everyone, and COVID-19 tried to change that.” One of the most visible examples of the pandemic’s effect on the downtown economy is the dozens of spaces that permanently closed their doors through 2020 and early 2021. Moffett said declining activity from residents, commuters and tourists alike contributed to the closures of 10 music and event venues and 88 storefronts tracked by the alliance downtown since last March. Click to read more at www.communityimpact.com.

AUSTIN (KXAN) — The pandemic’s economic impact translated to closed-up storefronts in a usually thriving downtown area. The Downtown Austin Alliance compiled data showing just how much downtown businesses suffered. ‘State of Downtown’ report gives a glimpse of how Austin businesses struggled during a pandemic. The alliance said as of February, about 20-25% of downtown storefront businesses are seemingly empty. “88 storefronts have reportedly closed, and another 96 storefront businesses we’re unsure about,” said Jenell Moffett, Downtown Austin Alliance Director of Research and Analysis, during Wednesday’s report presentation. Visits to the office also dropped dramatically during the pandemic. “Downtown office visits dropped by almost 90% in April. As restrictions changed, we’ve seen an uptick of employees returning… however, we’re still well below pre-pandemic levels,” Moffett said. Employers also put discussions on pause about what work would look like post-pandemic and vacancies nearly doubled throughout 2020. “Many were hesitant to lock down terms for office space. Subsequently, vacancy rates increased as well,” Moffett said. But empty storefronts don’t necessarily reflect the future of downtown, which the alliance said is poised for a rebound. John Gump, Austin executive vice president of CBRE, a global commercial real estate company, said the demand for office space right now is about the same as what it was before the pandemic. “It feels like we’re back full steam ahead,” Gump said. He said they’re tracking more than 2 million square feet of demand — tenants who are actively either looking for a new space or to move from an existing space. Click to read more at www.kxan.com.

Austin developer Ari Rastegar on how Covid will change real estate in large American cities forever… and how Texas is cashing in. He closed 11 major commercial real estate deals during the Covid-19 pandemic. This came after years of telling anyone who would listen how much opportunity there was in the central Texas capitol city many refer to as Silicon Hills. His proclamation earned Ari Rastegar the moniker ‘Oracle of Austin’. But Ari Rastegar isn’t stopping with Austin. “Austin was our prototype to establish and then expand around the Sun Belt,” says Rastegar, founder of Rastegar Property Company, an Austin-based CRE investment firm & vertically integrated real estate company with a focus on value-oriented real estate. “Nashville, Dallas, Phoenix, Raleigh and Tampa – the Sun Belt is hotter than it has ever been, and we see no end to the migration. You think Austin is exciting?” says Rastegar. “Get ready!” For years he watched droves of young professionals making their way to Austin, and he took careful note. That’s why, when the pandemic hit, Rastegar realized it would only expedite these migration trends. He utilized this insight and his uncanny ability to see around corners to position and propel Rastegar’s business plan forward. Now, that vision is bearing its fruit as companies like Apple, Facebook and Amazon invest long term in the city where he was born. Rastegar’s keen understanding of his hometown —- where he made his first real estate deal while in law school — gave him the advantage of knowing exactly where the young professionals coming to the city would want to live and the type of housing that would appeal to them. Click to read more at www.forbes.com.