Business
Pandemic Recovery: Have North American Downtowns Bounced Back?
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, which measures foot traffic in major office buildings 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.
It’s also worth noting that these two cities are home to a lot of single-occupant office buildings, which is a focus of this data set.
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?
Retail
Visualized: 10 Black Friday Retail Trends
Consumers are expecting more this Black Friday, but for retailers, the pressure is mounting. Here are 10 trends that may impact them in 2023.
10 Black Friday Retail Trends
This year, retailers are under major pressure to orchestrate even more substantial and enticing Black Friday discounts for their customers.
We partnered up with Airwallex to visualize the latest available data from 2022 to understand what this year’s holiday weekend could look like for retailers.
Consumer Loyalty and Price
Theme: Buyer Behaviour
In a 2022 U.S. study conducted by Emarsys, 58% of people claim they are more loyal to retailers that offer them discounts, incentives, and rewards, indicating that price plays a crucial role in fostering loyalty.
Moreover, 60% of respondents admitted to turning their back on the brands they were previously loyal to in an effort to save money amid inflation hikes.
Convenience is King
Theme: Buyer Behaviour
Salesforce notes that 2022 saw a global increase of 9% in Buy Online, Pick Up In Store (BOPIS) adoption during Cyber Week compared to early November data.
Specifically in the U.S., retailers offering BOPIS experienced 38% higher growth in online revenue during Cyber Week compared to those without this service.
Global Spending is Up
Theme: Spending Patterns
Globally, 2022 Cyber Week spending increased 2% YoY to $281 billion. This is despite some regions experiencing a decline and some retailers reporting lighter foot traffic.
Margins at Risk
Theme: Spending Patterns
While consumers are spending more, retailers are still seeing their margins squeezed due to a variety of factors such as high inflation, high cost of goods, strained systems, and increased demand for discounts.
That is why we are starting to see certain retailers choosing to “boycott” Black Friday, and although estimates vary, The Guardian reported that as many as 85% of smaller retailers were not participating in Black Friday in 2021.
The Smartphone Surge
Theme: Buyer Behaviour
According to Adobe, 47% of U.S. online sales came from smartphones during the 2022 holiday spending season—up from 43% in 2021.
This reflects a broader trend within the retail sector, aligning with projections for substantial growth in the global mobile commerce market.
Deeper Discounts
Theme: Spending Patterns
In another benefit to consumers, discounts are getting deeper. Throughout the 2022 holiday season, the average discount stood at 21% compared to 19% in 2021 with apparel, skincare, and beauty touting the deepest discounts.
Alternative Payment Options
Theme: Payments
When it comes to payment methods, alternatives such as Buy Now Pay Later (BNPL) are gaining traction, as evidenced by a 5% increase in orders YoY.
Financing Lower-Priced Goods
Theme: Payments
Despite the success of Buy Now Pay Later, the average order value decreased 5% YoY, meaning consumers are using the payment method more, but to help finance lower-priced goods.
Sales Spikes in APAC + Europe
Theme: Payments
Even though Black Friday has been traditionally viewed as an American retail phenomenon, it has transcended its U.S. origins and has been embraced by consumers the world over.
Several countries witness significant spikes in online sales in 2022, most notably in Australia with a +239% sales spike, and Spain at +576% spike when compared to average October sales.
Retailers Hit with Hidden Fees
Theme: Payments
Did you know that merchants of all shapes and sizes can often find it hard to escape paying unnecessary transaction fees during the holiday season?
For context, every international dollar a retailer generates during the holiday period could be converted up to three times, costing them up to 5.5% of every transaction.
Considering the multitude of benefits afforded to consumers during Black Friday and the holiday season, the question that looms is: is this retail bonanza genuinely worthwhile for retailers?
By partnering with Airwallex, retailers can simplify global payments, but also capitalise on increased consumer spending—without sacrificing on profit.
Learn more about Airwallex now.
-
Markets2 weeks agoRanked: The Biggest Retailers in the U.S. by Revenue
From Best Buy to Costco: we list out the biggest retailers in the U.S., and how much they earned from their stores in 2022.
-
Brands2 weeks agoRanked: Average Black Friday Discounts for Major Retailers
To compile this list, WalletHub analyzed over 3,500 deals from 13 U.S. retailers to calculate their average black Friday discounts for 2023.
-
Business3 months agoVisualizing the Number of Costco Stores, by Country
This graphic breaks down the number of Costco stores globally, providing insight into the retailer’s global presence.
-
Advertising2 years agoRanked: The Reputation of 100 Major Brands in the U.S.
What comes to mind when you think of a good or bad brand? This poll ranks the brand reputation of 100 major companies in America.
-
Money3 years agoA Very COVID Christmas: The Pandemic’s Impact on Festive Spending
This graphic explores how festive spending in 2020 has changed as a result of the ongoing COVID-19 pandemic and evolving consumer behavior.
-
Business3 years ago5 Big Picture Trends Being Accelerated by the Pandemic
In some cases, COVID-19 has sped up societal and economic trends that were already in motion. Here we examine five examples.
-
GDP7 days agoVisualizing U.S. GDP by Industry in 2023
-
Business2 weeks agoRanked: Fast Food Brands with the Most U.S. Locations
-
Markets2 weeks agoVisualizing 30 Years of Imports from U.S. Trading Partners
-
Markets2 weeks ago
Ranked: The Biggest Retailers in the U.S. by Revenue
-
Globalization2 weeks agoThe Top 50 Largest Importers in the World
-
Maps2 weeks agoMapped: Which Countries Recognize Israel or Palestine, or Both?
-
Education1 week agoRanked: America’s Best Universities
-
War1 week agoRanked: Share of Global Arms Imports in 2022