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Pandemic Recovery: Have North American Downtowns Bounced Back?

This is a syndicated repost published with the permission of Visual Capitalist. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

Pandemic Recovery: Have Downtowns Bounced Back?

As we continue on our journey towards recovery from the impacts of the pandemic, North American offices that sat empty for months have started to welcome back in-person workers.

This small step towards normalcy has sparked questions around the future of office life—will office culture eventually bounce back to pre-pandemic levels, or is remote work here to stay?

It’s impossible to predict the future, but one way to gauge the current state of office life is by looking at foot traffic across city centers in North America. This graphic measures just that, using data from Avison Young.

Change in Downtown Office Traffic

According to the data, foot traffic in 23 different metropolitan hubs across North America remains drastically below pre-pandemic levels.

Across all major cities included in the index, average weekday visitor volume has fallen by 73.7% since the early months of 2020. Here’s a look at each individual city’s change in foot traffic, from March 2, 2020 to Oct 11, 2021:

City Country Change in Foot Traffic
Austin 🇺🇸 -51.70%
Calgary 🇨🇦 -54.50%
Boston 🇺🇸 -54.90%
New York 🇺🇸 -60.50%
San Francisco 🇺🇸 -60.80%
Edmonton 🇨🇦 -62.20%
Houston 🇺🇸 -67.90%
Chicago 🇺🇸 -68.10%
Vancouver 🇨🇦 -68.20%
Los Angeles 🇺🇸 -68.60%
Philadelphia 🇺🇸 -69.00%
Washington, DC 🇺🇸 -69.40%
San Francisco Peninsula 🇺🇸 -70.00%
Denver 🇺🇸 -73.50%
Nashville 🇺🇸 -75.60%
East Bay/Oakland 🇺🇸 -76.10%
Atlanta 🇺🇸 -77.50%
Dallas 🇺🇸 -79.80%
Montreal 🇨🇦 -80.30%
Toronto 🇨🇦 -81.20%
Miami 🇺🇸 -82.20%
Silicon Valley 🇺🇸 -82.60%
Ottawa 🇨🇦 -87.70%

The Canadian city of Calgary is a somewhat unique case. On one hand, foot traffic has bounced back stronger than many other downtowns across North America. On the other hand, the city has one of the highest commercial vacancy rates in North America, and there are existential questions about what comes next for the city.

Interestingly, a number of cities with a high proportion of tech jobs, such as Austin, Boston, and San Francisco bounced back the strongest post-pandemic. Of course, there is one noteworthy exception to that rule.

A Tale of Two Cities

Silicon Valley has experienced one of the most significant drops in foot traffic, at -82.6%. Tech as an industry has seen one of the largest increases in remote work, as Bay Area workers look to escape high commuter traffic and high living expenses. A recent survey found that 53% of tech workers in the region said they are considering moving, with housing costs being the primary reason most respondents cited.

Meanwhile, in a very different part of North America, another city is experienced a sluggish rebound in foot traffic, but for very different reasons. Ottawa, Canada’s capital, is facing empty streets and struggling small businesses that rely on the droves of government workers that used to commute to downtown offices. Unlike Silicon Valley, where tech workers are taking advantage of flexible work options, many federal workers in Ottawa are still working from home without a clear plan on returning to the workplace.

Some Businesses Remain Hopeful

Despite a slow return to office life, some employers are snapping up commercial office space in preparation for a potential mass return to the office.

Back in March 2021, Google announced it was planning to spend over $7 billion on U.S. office space and data centers. The tech giant held true to its promise—in September, Google purchased a Manhattan commercial building for $2.1 billion.

Other tech companies like Alphabet and Facebook have also been growing their office spaces throughout the pandemic. In August 2021, Amazon leased new office space in six major U.S. cities, and in September 2020, Facebook bought a 400,000 square foot complex in Bellevue, Washington.

Will More Employees Return or Stay Remote?

It’s important to note that we’re still in the midst of pandemic recovery, which means the jury’s still out on what our post-pandemic world will look like.

Will different cities and industries eventually recover in different ways, or are we approaching the realities of “new normal” foot traffic in North American city centers?

The post Pandemic Recovery: Have North American Downtowns Bounced Back? appeared first on Visual Capitalist.

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