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Downtowns across the U.S. continue to struggle

Office vacancy rates are hitting all-time highs, even as employers end WFH

The future of downtowns: In this series, we dive into challenges and opportunities as cities try to rebuild their downtowns

Downtown St. Louis has struggled with high office vacancy rates and shuttered businesses. Photo by Kenny Nguyễn on Unsplash

What you probably already know: Downtowns across the U.S. have been slow to recover from the pandemic, and many are still struggling with high office vacancy rates. While it is easy to blame the work-from-home trend for this shift, downtowns were already being overbuilt before 2020. Now, more than 20% of offices remain empty — the highest rate since 1979 when data tracking began. With fewer people downtown, crime and drug issues have become more pronounced, making downtowns feel less safe and creating a "doom loop" that can be difficult to escape.

Why? Downtown St. Louis was ensnared in the downward doom-loop spiral long before the pandemic, but a sharp drop in foot traffic in recent years exacerbated the cycle. Businesses left downtown office buildings and moved to the suburbs, taking employees who frequented nearby shops and restaurants with them. Fewer customers led many storefronts to close or move away, leaving empty streets that became more dangerous and less attractive to residents, while tax revenue dropped. Reversing the downtown real estate doom loop is difficult, but Detroit has shown it’s not impossible. A decade after declaring bankruptcy, the city now has a booming central business district where people want to work and live as billions are spent on converting empty offices into apartments, hotels, retail and entertainment spaces, bars, and restaurants. In short, Detroit embraced a more European downtown model.

What it means: The cycle of urban decay in St. Louis is reflected in other cities across the country, particularly in the Midwest. Empty streets have seen upticks in crime, drug use, and homeless encampments, presenting public safety and social challenges for city leaders. On top of that, more people are returning to downtown offices as employers sunset work-from-home policies. That, however, is disrupting the lives of many working women who found it easier to balance childcare and work in the new model. Demand for more affordable housing is also leading building owners and investors to consider converting offices into residential units. Now, the question many cities are asking isn’t how to return downtown to its previous state, but rather what will it take to shape future downtowns into a more inclusive, balanced, and sustainable places?

What happens now: We want to answer that question and better understand the current state of downtown at home and across the country. To do that, we’re seeking out a diverse array of women leaders in their respective spheres and sharing their thoughts on everything from housing equity and urban development to life after the WFH era. Do you have a story idea or know of someone we should talk to as we work on this series? Drop us a line by simply replying to this email.

— Series by contributing writer Cambrie Juarez