This story was originally published by PublicSource, a news partner of NEXTpittsburgh. PublicSource is an independent nonprofit newsroom serving the Pittsburgh region. Sign up for our free newsletters. By Aakanksha Agarwal, PublicSource January 21, 2025 In the nearly four years since the pandemic disrupted its office-centric core, Pittsburgh’s downtown hasn’t emerged from crisis. Officials and observers are asking: Can Downtown be more than office towers and briefcases? Can it become a true neighborhood? “Downtown Pittsburgh is not what it used to be,” said Kyle Chintalapalli, chief economic development officer in the administration of Pittsburgh Mayor Ed Gainey. “And that’s not necessarily a bad thing. “That said, we’re all clear-eyed that Downtown operates differently post-pandemic.” That redefinition is not over. Three months after Gov. Josh Shapiro announced a $600 million plan for revamping the Golden Triangle, the process has just begun, and big questions remain about the focus and emphasis of the effort. As Downtown preps for transformation, here is a by-the-numbers look at what Pittsburgh’s business district has been through, and where it might be going. drop in daily Downtown activity Daily Downtown activity — measured as the number of visits from residents, employees and visitors — remains 26% below its April 2019 peak as a benchmark month, according to the Allegheny Conference on Community Development. Once a bustling hub, Downtown Pittsburgh now faces the challenge of redefining itself in a world shaped by hybrid work and shifting lifestyle values. People pass the glowing window of S.W. Randall’s Toyes and Giftes on Dec. 4, along Smithfield Street in Downtown. (Photo by Stephanie Strasburg/PublicSource) This new reality has catalyzed new ideas and investments, supported by partnerships with the Shapiro administration, Allegheny County and corporate stakeholders. “This is a tremendous opportunity to redefine Downtown as a thriving, multifunctional hub,” said Chintalapalli. decline in Downtown workforce The pandemic’s most enduring impact on Downtown Pittsburgh has been the drastic transformation of its office market — historically one of the densest in the nation. Before 2020, the Golden Triangle was a bustling hub of commerce, with high occupancy rates in its office towers, particularly among top-tier buildings. Older and smaller office structures, however, were already showing signs of wear and diminishing appeal. Lauren Connelly, director of Allegheny County Economic Development, said the shift toward remote and hybrid work models, accelerated by the pandemic, has had lasting effects on Pittsburgh’s commercial real estate market. “We had one of the highest concentrations of office space in North America, and as a result we’re uniquely positioned to feel that pinch.” Smithfield Street in December. (Photo by Stephanie Strasburg/PublicSource) The number of Downtown workers has shrunk by 17% over two decades as remote and hybrid options have taken hold, accelerated by the pandemic, according to Connelly. “Many companies reassessed their real estate needs,” said Thomas Link, chief development officer at the Urban Redevelopment Authority [URA]. “Some reduced their office footprints by as much as half. Others left entirely. As a result, vacancy rates soared, property values declined and the ripple effects were felt on street-level businesses, public transit and overall vibrancy.“ These changes now threaten the city’s tax base that relies on Downtown for 25% of property tax revenue and 40% of hotel tax revenue, according to a 2020 study by the International Downtown Association. increase in Downtown residents  Where office towers once dominated, a residential resurgence is taking shape, led by young professionals, retirees and everyone in between. Over five years, Downtown’s population has jumped 43%, as developers repurposed office spaces into high-rise havens. With a 93.7% apartment occupancy rate as of fall 2024, urban dwellers look to be a key piece of Downtown’s changing outlook. This trend is buoyed by the Pittsburgh Downtown Conversion Program, a pilot targeting underutilized office buildings for residential redevelopment. The program, launched by the URA in 2023, finances conversions of empty office buildings into Downtown housing using federally allocated pandemic recovery funds. Eligible proposals must earmark at least 20% of units for affordable living. A jogger takes a moment with the Pittsburgh city skyline as seen from the Schenley Park overlook, on Nov. 29, 2022, in Oakland. (Photo by Stephanie Strasburg/PublicSource) “We’ve seen a ‘flight to quality’ in the office space market,” said Susheela Nemani-Stanger, the URA’s executive director. “Businesses are increasingly drawn to Class A buildings with superior amenities, leaving Class B and C offices. These are perfect candidates for conversion into housing.” Take Gulf Tower, for example. Once a monolith of cubicles, it’s now set to house 225 sleek residential units, 24 of them affordable, supported by a $10 million state investment. The Gulf Tower is one of seven buildings identified for conversion, with nearly 1,000 housing units slated for development. Other projects, including Smithfield Lofts (46 units, 39 of which are affordable) and First & Market (a fully affordable 93-unit project), are set to alter Downtown’s built environment. Cultural District attendance recovery When performances returned after pandemic-era restrictions lifted, Pittsburgh witnessed a full-blown surge in cultural engagement, according to Kendra Whitlock Ingram, president and CEO of the Pittsburgh Cultural Trust. “People decided, ‘If I’m going out, it’s going to be an event — watch a show, get dinner, get a nightcap,’” said Whitlock, capturing the city’s post-lockdown ethos. The 2022–23 season reflected this appetite, with the Cultural District achieving 92% of its pre-pandemic attendance levels by late 2023. People walk along Fifth Avenue on Aug. 16, 2023, in downtown Pittsburgh. (Photo by Stephanie Strasburg/PublicSource) Shows like “Les Misérables,” “To Kill a Mockingbird” and “Beetlejuice” sold out weeks in advance, according to Whitlock, setting the tone for Pittsburgh’s cultural revival. The 2023-2024 run of “Hamilton,” which drew 64,000 attendees, had a 96% sell-out rate. Not all art forms bounced back equally. Classical music and theater, reliant on older audiences, saw slower returns. Children’s theater also struggled, with younger audiences aging out quickly, according to Whitlock. Contemporary dance and jazz have flourished, though, with attendance nearing pre-pandemic levels, according to the Cultural Trust. million in proposed investment  “In a world where people have more choice where they can work and live, people must want to be Downtown. The workforce is changing, and Pittsburgh’s Downtown must evolve to meet these new needs,” said the county’s Connelly. Leaders and stakeholders are eyeing investments in amenities that will make Downtown a more attractive place to live. In October 2024, Shapiro and regional leaders unveiled a $600 million revitalization plan focusing on converting office buildings, enhancing public spaces and upgrading infrastructure. Backed by $63 million from the state and $377 million envisioned to come from private developers, the plan is expected to generate over 3,500 construction jobs, according to reporting from Technical.ly. Key initiatives include: Market Square Facelift: Transforming an iconic space into a pedestrian-friendly hub Eighth Street Project: A $30 million investment featuring a 1-acre lawn, band shell and artist-designed playgrounds Point State Park’s transformation: A $25 million investment to revamp pedestrian access, refresh the fountain’s lighting and introduce new recreational options on the cityside lawn. Gov. Josh Shapiro shakes hands as he leaves a press conference announcing nearly $600 million for Downtown development on Oct. 25, in Downtown. (Photo by Stephanie Strasburg/PublicSource) Pittsburgh also faces challenges in recovering pre-pandemic workforce levels though, Connelly said. Comparable midsized cities like Cleveland and Detroit have reportedly surged ahead with transformative strategies. “These cities have embraced sector-aligned commercial uses, such as wet lab life science facilities, public-private partnerships and large-scale infrastructure projects, advancing beyond recovery toward vibrant, diversified urban cores,” she said. Return-to-office Rates Office life isn’t over, but it’s definitely evolving. Approximately 74,000 workers are employed Downtown, accounting for 7% of the regional workforce. Return-to-office rates stabilized at around to 60% in 2024, according to the Allegheny Conference. Richard Hooper, vice president for marketing and communications at the Pittsburgh Downtown Partnership [PDP], sees promise in the new rhythm: “The most significant drivers of Downtown Pittsburgh’s recovery in 2024 include improved return-to-office trends, a steady increase in event attendance and a robust demand for residential living.” Events including the Three Rivers Arts Festival, the newly launched Oktoberfest, Light Up Night, the Holiday Market and Picklesburgh have been well attended in recent years, according to Hooper, with the latter drawing over 250,000 attendees in 2024. Pittsburgh’s downtown city skyline is illuminated by the setting sun on Sept. 5, 2023, as seen from Mt. Washington. (Photo by Stephanie Strasburg/PublicSource) Still, hybrid work has left plenty of office spaces looking eerily empty, which hasn’t helped street-level activity. And high commercial vacancy rates have slashed city tax revenues, setting up years of lean budgeting. In response, PDP is working with local businesses to help them adapt. Programs like Project Pop-Up and the Downtown Rent Abatement Program provide financial support to new businesses, helping them establish a presence Downtown and drawing foot traffic back into the area. While foot traffic sags, bikes are having a moment. Bike-share trips rose 160% between 2019 and 2024, according to Connelly. Public transit, however, hasn’t fared as well, with bus ridership remaining below two-thirds of pre-pandemic averages. Some leaders say the changes brought by the pandemic present an opening for bold new thinking. “This is our chance to ask: Who does Downtown serve, and who does it not serve?” said Nemani-Stanger. “We need to be intentional about who it includes — children, seniors, people seeking affordable housing — so that everyone feels like they belong here.” This is a marathon, not a sprint, officials agree. While office towers are starting to find new life through housing conversions, and public spaces are being reimagined, persistent challenges like adapting transit systems and addressing lingering vacancies suggest there’s still a long road ahead. The challenge, according to Connelly, is to find a strategic path forward “through financing and policy to more effectively leverage public- and private-sector investment. Luckily, Pittsburgh has a rich history of coming together to solve big problems — and we’ll need to do more of that to reimagine Downtown for future generations.” Aakanksha Agarwal is a wine, travel and lifestyle journalist. Originally from India and a former Bollywood stylist, she now writes from Pittsburgh, exploring the intersections of food, culture and community from a global perspective. She can be reached at @[email protected]. This story was fact-checked by Bella Markowitz. This article first appeared on PublicSource and is republished here under a Creative Commons license. The post What does the data say about Downtown Pittsburgh’s present and future? appeared first on NEXTpittsburgh.