AUSTIN, Texas — On Wednesday evening, Austin city leaders presented the latest State of Downtown report, meant to give insight on the area's economic health.
The report found office vacancy rates went up slightly last year to 18%, but downtown employment also increased by 21%.
Around 88% of available downtown storefronts were occupied in 2023, down 2% from the year before.
Sixty-eight downtown businesses permanently closed last year, but new business openings were up significantly from 2022, with 55 new establishments.
The report goes on to say the downtown area added 11 new projects last year, accounting for 3.85 million square feet. Of that, 22% was office space.
Despite the lack of demand to fill all that office space, Mayor Kirk Watson said he's not concerned.
"Some of the indicators aren't as strong as we've seen them in the past decade, but that's OK," Watson said. "We expect those types of fluctuations in such a vibrant, lively place."
Despite six beautification projects being completed, downtown visitor traffic still hasn't reached the level it was pre-pandemic. Last year, the average visitor traffic was still only 86% of the level it was in 2019.
To read the full report, visit the Downtown Austin Alliance's website.
Boomtown is KVUE's series covering the explosive growth in Central Texas. For more Boomtown stories, head to KVUE.com/Boomtown.