Midsize Cities Poised to Rebound from the Pandemic with Strong Economic Development Plans

Midsize cities across the United States are positioning themselves to quickly rebound from the economic impacts of the pandemic. Cities like Austin, Texas; Boise, Idaho; and Portland, Ore., have developed strong alliances with local economic development groups, creating comeback plans that prioritize affordable loans, relief for small businesses, and investments in downtown areas. These partnerships aim to lure new business activity and modernize infrastructure.

As vaccination rates increase and businesses start to reopen, cities are cautiously moving forward with economic recovery plans. These plans include assessing the pandemic's effects on key business sectors, recruiting talented workers, and preparing shovel-ready building sites. For instance, the Tucson region has a five-year, $23 billion growth plan in industrial and logistics development that resulted in 16,000 new jobs before the pandemic. The city's revitalization plan, set to take effect this month, will focus on industrial sites, as demand is high for such facilities.

Key Takeaways:

• Austin, Texas; Boise, Idaho; and Portland, Ore., are midsize cities that have developed strong alliances with local economic development groups, enabling them to create comeback plans for quick pandemic recovery.
• These plans prioritize affordable loans, relief for small businesses, and investments in downtown areas to lure new business activity and modernize infrastructure.
• Tucson, Arizona, has a five-year, $23 billion growth plan in industrial and logistics development that created 16,000 new jobs before the pandemic.
• The city's revitalization plan, set to take effect this month, will focus on industrial sites due to high demand for such facilities.
• Other cities, such as San Francisco and New York, are also struggling to recover from pandemic restrictions but have shown capacity to rebound from calamity in the past.
• Cities with a strong alliance with business development agencies are expected to recuperate faster.
• Some cities are emerging from the pandemic with notable successes, such as Boston, which approved $8.5 billion worth of development projects last year.
• Downtown areas face challenges in recovering, as some cities may see less office construction activity due to the shift towards remote work.

Statistics:

• 80% of real estate inquiries in Tucson are geared towards industrial facilities.
• 65% of inquiries deal with space for new factories.
• 16,000 new jobs were created in the Tucson region through its five-year, $23 billion growth plan in industrial and logistics development before the pandemic.
• 55 significant development projects were approved in Boston last year, encompassing 15.8 million square feet and valued at $8.5 billion, the most in Boston's history.
• 85 downtown restaurants in Tucson closed during the pandemic, eliminating 10,000 travel and tourism jobs and cutting revenue in the sector by $1 billion.

Sources:

• "Recovery plans create an agenda for rebuilding the metropolitan area," said Richard Florida, professor at the University of Toronto.
• "We're making sure that we have the inventory of building sites so when they do come knocking, we can fill the order," said Joe Snell, Sun Corridor's president and chief executive.
• "We see a temporary downturn in demand for new offices," said Richard Barkham, global chief economist at CBRE.
• Tracy Hadden Loh, a fellow at the Brookings Institution, said, "The number of square feet per worker has declined really dramatically since 1990."
• Ted Egan, San Francisco's chief economist, said, "We're expecting people to come back to the office."
• Sources from the New York Times, including the account of Sun Corridor's president, Joe Snell, and quotes from Mayor Regina Romero of Tucson.
• Data from Sun Corridor, including the Tucson region's five-year, $23 billion growth plan in industrial and logistics development.
• Statistics from the Downtown Austin Alliance and the Greater Portland Economic Development District.
• Research from the University of Toronto and CBRE.