As the office recedes in importance, central business districts are transforming into spaces to live and socialize, not just work.

America’s downtowns are in big trouble, or so the pundits tell us, thanks to the enduring effects of Covid-19 and the rise of remote and hybrid work. In 10 of the largest US cities, office occupancy averages are less than half, roughly 44% as of mid-August, of what they were back in 2020 before the pandemic hit. That’s better than they looked in May 2021, when the average stood at just 27%. But several big cities, including New York, Chicago and San Francisco, have been stalled at 40% or under for several months — a sign that the workplace disruptions of the Covid era are with us for the long haul.1

Can America’s iconic downtowns survive this shift? 

Yes, and for a basic reason. Great downtowns are not reducible to offices. Even if the office were to go the way of the horse-drawn carriage, the neighborhoods we refer to today as downtowns would endure. Downtowns and the cities they anchor are the most adaptive and resilient of human creations; they have survived far worse. Continual works in progress, they have been rebuilt and remade in the aftermaths of all manner of crises and catastrophes — epidemics and plagues; great fires, floods and natural disasters; wars and terrorist attacks. They’ve also adapted to great economic transformations like deindustrialization a half century ago.

The rise of remote work today won’t kill off our downtowns, but they will be forced to change once again. And with smart strategies and perseverance on the part of city leaders, real estate developers and the civic community, they can become even better than they were.

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