People have been talking about living downtown forever it seems, but in reality it’s been more of a pioneering initiative with notable – though few in number – converted renovations of existing buildings. But that’s finally changing now, isn’t it?
Yes, in the past 14 months, four multi-family projects – all new construction – have introduced 730 new residential units to the downtown market. The pipeline for mixed-use development continues to fill with an additional 750 units that are either planned or under construction through 2017.
What’s the residential population of downtown today? Next year? Down the road?
There are more than 2,000 people currently living downtown; as the new multi-family communities continue to fill, we are anticipating downtown’s population will soon surpass 3,000. The residential projects in the pipeline that are planned and approved will yield an additional 750 units, which will push downtown’s residential population to 5,000.
Who’s moving in? What’s the average price point on the new residences?
We are seeing a few factors driving downtown’s residential market. Until recently, there were only 1,500 residents downtown and a 99% residential occupancy rate; in other words, there were very limited opportunities available for those interested in downtown living. Downtown’s housing inventory in many ways is playing catch up.
Also, two of the population’s largest generations – the baby boomers and millennials – are actively in the market for this type of housing stock. The baby boomers are typically empty nesters looking to downsize. The millennials are relatively new to the housing market and looking for a point of entry, and with downtown’s strong and growing job market, people are increasingly choosing to live near their work. On average, the rental rates for the downtown apartments range from $800 to $2,500 per month.
We’re famous for our restaurants, and now there’s even talk that there might be too many for our market. Same with our hotel space, that perhaps we’re bringing more to town than we need, at least for the immediate future. Could you speak to that?
Downtown’s bar/restaurant scene is as vibrant as ever with existing businesses expanding and choosing to open new concepts in other downtown locations. Downtown’s hotel market was dramatically underserved. The Convention Center, corporate traveler and visitor markets were not adequately served by 187 rooms. The four new hotel projects are largely “boutique” in nature, bringing an additional 450 rooms to the market; they only begin to address downtown’s lodging deficiency.
Still, the reality is that downtown’s lacking such key amenities as a supermarket, that it’s perceived as not safe enough. Is downtown ready for city living?
Downtown’s infrastructure will be challenged to keep pace with the growing day and nighttime population and the migration to an 18-hour activity center. Well-lit, clean, safe and well-maintained sidewalks that connect businesses, residents, visitors and activities provide a high quality of life downtown.
