As downtown enters a period of unprecedented transformation, Downtown Austin Alliance calls on the community and investors to seize the moment, keeping downtown accessible, vibrant and open for all

AUSTIN, Texas, May 13, 2026 /PRNewswire/ -- Today, the Downtown Austin Alliance (Downtown Alliance) presented findings from its 2026 State of Downtown Report at its annual Future of Downtown event, held for the first time at the historic Paramount Theatre. The annual gathering convened business leaders, residents, property owners and community stakeholders for a forward-looking discussion about downtown Austin's trajectory. Based on 2025 metrics, the report, produced by the Downtown Alliance since 2019, tracks key data points to tell the story of downtown's growth, vitality and long-term trends.

"The time is now," said Davon Barbour, president and CEO of the Downtown Austin Alliance. "Downtown Austin isn't managing decline — it's managing growth. Fueled by catalytic public infrastructure investments, we are entering one of the most transformative periods in downtown's history. Our focus is on keeping downtown accessible, vibrant and open to all as this next chapter unfolds. The opportunity before us is extraordinary, and this community has everything it takes to seize it."

Findings of note from the 2026 State of Downtown Report include:

• Downtown is home to 13,976 residents, 131,775 employees and 14,164 residential units, with average daily visits exceeding 160,000 people.
• Downtown Austin is entering a pivotal period of delivery, not just planning. Billions of dollars in coordinated investment are now underway or breaking ground, including the Congress Avenue Urban Design Initiative, Waterloo Greenway Confluence, I-35 Reconstruction, Austin Light Rail and the Austin Convention Center redevelopment.
• Six projects totaling 2.9 million square feet are currently under construction, with 21 additional projects in planning stages that will add approximately 8.2 million square feet to downtown.
• Office market vacancy stands at 20.6% and is beginning to rebound, supported by strong leasing activity. Downtown asking rents remain $15 per square foot above the broader Austin market and developers report a bullish long-term outlook.
• Retail remains one of downtown's strongest sectors. Total consumer spending reached $2.53 billion in 2025, foot traffic has rebounded to 93% of pre-pandemic levels and downtown's 740+ active storefronts, including 90 restaurants and two MICHELIN Star establishments, continue to drive regional appeal.
• The downtown residential sales market is on an upward recovery trajectory, with the condo market up 64% since 2018. Multifamily occupancy stands at 87.2% with asking rents beginning to show signs of growth.

With major construction projects simultaneously underway across the urban core, the Downtown Alliance made keeping downtown accessible its top operational priority this past year. The organization deployed a Construction Mitigation Framework, launching a Rideshare Voucher Program in partnership with Uber that supported nearly 5,000 rides from almost 2,000 users in one month, a Construction Impact Relief Grant that awarded $80,000 to eight locally owned businesses and a Downtown Patron Parking Pilot that engaged 35 businesses near the Convention Center redevelopment site. These pilots reflect the Downtown Alliance's commitment to ensuring that downtown remains open for business and that the businesses and workers who define the district are not left behind during its transformation.

Public safety and quality of life remained central priorities. Year-over-year data from 2024 to 2025 showed meaningful progress. In January 2026, the Downtown Alliance launched the Facade Improvement Grant Program on East Sixth Street, offering matching grants as part of a broader effort to evolve the corridor into a safe, thriving 18-hour destination. The Downtown Alliance's Downtown Ambassadors team removed more than 206,000 pounds of trash and made nearly 77,000 hospitality contacts over the course of the year.

The Downtown Alliance deepened its investment in arts, culture and economic opportunity downtown. The Downtown Austin Space Activation (DASA) program hosted 155 events and program series during the 2025-2026 year, and the inaugural VIBE Downtown event drew more than 1,000 attendees and distributed over $40,000 to local artists and creatives. In September 2025, the 5th Street Mexican American Heritage Corridor earned designation as a Cultural Heritage District by the Texas Commission of the Arts, unlocking state funding to preserve and uplift the community's cultural legacy.

The event featured a keynote address from Davon Barbour, president and CEO of the Downtown Austin Alliance, as well as a keynote from Tavel Bristol-Joseph, Chief Operating Officer of Emmer & Rye Hospitality Group, a 2026 James Beard Foundation finalist whose downtown restaurants Emmer & Rye and Hestia hold MICHELIN recognition. Mayor Kirk Watson delivered welcome remarks. Barbour underscored the urgency of the moment, calling on business leaders, investors and community members to act boldly and collaboratively as downtown enters its next phase of growth.

The Downtown Alliance recognized the following award winners:

• Meredith Powell Award for Community Culture recipient: Antone's
• Downtown Vision Award recipient: Red River Cultural District

The full 2026 State of Downtown Austin Report can be viewed online. For more information on the work of the Downtown Alliance and its Foundation, please visit downtownaustin.com.

About Downtown Austin Alliance: The Downtown Austin Alliance (Downtown Alliance) works with key downtown stakeholders—property owners, residents, business owners, community organizations and government officials—to advance our collective vision for the future of downtown Austin. The Downtown Alliance is engaged in dozens of projects and issues that contribute to the safety, cleanliness and appeal of downtown Austin to residents, employees and visitors. As a full-time advocate for downtown, the Downtown Alliance is actively engaged in planning decisions that impact the area. We also advance downtown's vision through direct services supporting safety and cleanliness. For more information, please visit downtownaustin.com.

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SOURCE Downtown Austin Alliance