AUSTIN, TEXAS — The Downtown Austin Alliance released its 2026 State of Downtown Report, outlining economic indicators for the district and seven priorities the organization plans to pursue in the year ahead. The report stated that office vacancy in Downtown Austin is just over 20% and is starting to rebound, compared with a citywide office vacancy rate of 17%.

More than 160,000 people visit Downtown Austin on an average day, according to the report. The district has nearly 14,000 residents and more than 131,000 employees. Consumer spending in the area reached $2.5 billion in 2025, and foot traffic has returned to 93% of prepandemic levels.

The report identified 740 storefronts in Downtown Austin, including two Michelin-star restaurants. The district's retail and dining landscape is part of the broader picture the report presents as the Alliance sets its agenda for the coming year.

"Downtown Austin isn't managing decline — it's managing growth. Fueled by catalytic public infrastructure investments, we are entering one of the most transformative periods in downtown's history. Our focus is on keeping downtown accessible, vibrant and open to all as this next chapter unfolds." said Davon Barbour, president and CEO of the Downtown Austin Alliance.

Several major construction projects are underway in the area, including the reconstruction of Interstate 35, light rail construction and the redevelopment of the Austin Convention Center. The report said new downtown projects are unlikely in the near future as ongoing construction impacts hotels, shops and restaurants in the area.

The Alliance outlined seven goals for the coming year. They include addressing homelessness and behavioral health, construction mitigation, and the evolution of East Sixth Street. The organization also listed potential Interstate 35 caps, enhanced economic development, light rail station design, and a central city plan to expand density and downtown quality of life.