METRO Magazine Logo
MenuMENU
SearchSEARCH

Study finds value in downtown, center cities investment

From driving tax revenue and business activity to spurring smart development and innovative workplaces, the International Downtown Association and Stantec found that downtowns play a pivotal role in the long-term health of a region.

January 30, 2018
Study finds value in downtown, center cities investment

The research in this study will empower local leaders to work with the public and private sectors at multiple levels to encourage investment, and support the continued evolution of downtown. Investing in a strong downtown is crucial for a successful city and region.

IDA/Stantec

4 min to read


The research in this study will empower local leaders to work with the public and private sectors at multiple levels to encourage investment, and support the continued evolution of downtown. Investing in a strong downtown is crucial for a successful city and region. IDA/Stantec

Cities and regions have the potential to leverage profound lasting benefits through investment in downtowns and center cities, according to “The Value of U.S. Downtowns and Center Cities” report released by the International Downtown Association (IDA). From driving tax revenue and business activity to spurring smart development and innovative workplaces, downtowns play a pivotal role in the long-term health of a region.

The report is the result of an eight-month study by IDA, in partnership with Stantec’s Urban Places team, an interdisciplinary hub joining the global firm’s urban experts, and 13 downtown place management organization members across the U.S. to create a replicable, accessible, and standard methodology to calculate the value of downtowns. The resulting report articulates the mutual benefits of downtown investment to a broad range of relevant stakeholders. This research clearly shows the importance a downtown has on its city and region, thus demonstrating its unique return on investment to help advise future decision making and to increase support from local decision makers.

Ad Loading...

RELATED: Jacksonville Works to Provide Quality Service, While Delivering Diverse Project Portfolio

The Value of U.S. Downtowns and Center Cities is informed by experts and downtown leaders from around the country, encompassing over 100 key data points, 33 guiding benefits, and five principles (economy, inclusion, vibrancy, identity, and resilience). The project examined 13 American downtowns and center cities and was modeled after the award-winning project, “The Value of Investing in Canadian Downtowns” (2013).

“This project is the most significant body of research IDA has ever produced. It is its first quantifiable study of downtown performance and its release marks the beginning of our new research division,” said David Downey, president/CEO of IDA. “I couldn’t be more pleased with the third-party evaluation we have delivered to our 13 member organizations and the new standard IDA has established for the urban place management industry.”

The initial downtown pilot group underscores the powerful impact of these downtowns far beyond their limited physical footprint with a city.

RELATED: Rail Station Redevelopment to Redefine Philadelphia for 21st Century

Ad Loading...

Among its key findings:

  • Downtowns average just 3% of citywide land, but account for 31% of citywide tax revenue. This means for every 1% of citywide land, downtowns contribute approximately 10% of citywide tax revenue.

  • Despite the uncertain future of retail, downtown retail is still a significant presence — averaging 16% of citywide retail sales and retail offerings. On average, downtowns generate nine times more retail sales than their citywide counterparts.

  • Downtowns continue to serve as major employment centers, accounting for 30% of citywide jobs and 40% of citywide office space. They are also adapting to workplace trends, containing 60% of citywide co-working space, 39% of citywide creative jobs, and 31% of citywide knowledge jobs.

  • Residents aren’t just moving to cities — they are moving to downtowns. Downtown residential is increasing much faster than the rest of the city (38% compared to 5%). Downtowns also saw a 27% increase in residential housing units from 2010-2015, compared to the city’s average of 6%.

  • Downtowns are multimodal hubs. Downtowns consistently had higher Walk Scores, Bike Scores and Transit Scores than their greater cities (85-90 compared to 52-57), had higher rates of non-single-occupancy vehicle (SOV) commuters (43% compared to citywide 28%).

The research in this study will empower local leaders to work with the public and private sectors at multiple levels to encourage investment, and support the continued evolution of downtown. Investing in a strong downtown is crucial for a successful city and region.

“This report, and all the great data that underlies it, helps to quantify what we’ve known for decades — that a vibrant downtown disproportionately supports the success of any great city. In terms of economic, social, and cultural vitality, downtowns punch orders of magnitude above their weight,” said Craig Lewis, principal of Stantec's Urban Places. “Our team is proud to have contributed to this piece of vital research. We look forward to our continuing partnership with the International Downtown Association to help downtowns and business districts — especially IDA members — tell the full story of their importance to city and regional economic performance.”

This year, the partnership between IDA and Stantec’s Urban Places will build and expand upon current research related to successful urban revitalization programs and apply the data toward the development of the first Downtown Vitality Index. This annual index will score urban districts and center cities on key economic, social, and environmental factors of downtown vitality using these new data standards and methodology. This novel tool will standardize the value assigned to a downtown as a place for a range of stakeholders; create a useful set of tools for replicable, data-driven measurement; and define a baseline for progress assessment and peer comparison.

 

More Management

Managementby StaffMarch 19, 2026

People Movement: The Latest from TARTA, STV, and More

METRO’s People Movement highlights the latest leadership changes, promotions, and personnel news across the public transit, motorcoach, and people mobility sectors.

Read More →
A BART railcar
Managementby StaffMarch 19, 2026

BART Monetizes Empty Parking With New Online Leasing Tool

BART began offering select parking lots to non-BART riders to generate new revenue to help address its FY27 $376M operating budget deficit brought on by remote work.

Read More →
MTA Chair & CEO Janno Lieber sits with a customer service employee and takes calls.
Managementby Elora HaynesMarch 19, 2026

Transit Agencies Nationwide Celebrate 2026 National Transit Employee Appreciation Day

Agencies across the U.S. honored transit workers on March 18, recognizing the essential roles they play in keeping communities moving daily.

Read More →
Ad Loading...
Cover for METROspectives with Inez Evans Benson
ManagementMarch 18, 2026

Inez Evans-Benson on Leadership and the Future of Transportation

Drawing on decades of industry experience, Evans-Benson offered insights into the differences between the two, along with tips for better customer engagement and more.

Read More →
An RTC of Washoe County bus driving down Virginia Street.
Managementby StaffMarch 18, 2026

Keolis Lands 3 Contract Renewals

The renewals include continued operations at Fort Lauderdale-Hollywood International Airport in Florida; the PRTC in Virginia; and RTC Washoe in Nevada.  

Read More →
A MARTA employee using the new Better Breeze fare ticket machines.
Managementby StaffMarch 17, 2026

MARTA’s New 'Better Breeze' Fare System Nears Launch

The new system introduces tap-to-pay, touchscreen kiosks, and updated Breeze cards, with both old and new systems running through May.

Read More →
Ad Loading...
A wide angle view of two MTA buses with three people walking between them.
Managementby StaffMarch 16, 2026

Proposed Auto Insurance Reform Would Save New York’s MTA Millions Annually

The governor’s proposed auto insurance reforms could save the agency $48 million annually by limiting payouts in crashes where buses are not primarily at fault.

Read More →
paratransit bus
SponsoredMarch 16, 2026

Measuring the True Cost of Paratransit Fleets

What truly drives the cost of a paratransit fleet? Beyond the purchase price, seven operational factors quietly determine maintenance frequency, downtime, and long-term service reliability. This whitepaper explores how these factors shape lifecycle cost and what agencies should evaluate when selecting paratransit vehicles.

Read More →
Cover photo for METROspectives with The Bus Coalition
Busby Alex RomanMarch 13, 2026

Inside The Bus Coalition’s Push for Stronger Federal Transit Investment

In this conversation, TBC’s Executive Director Ed Redfern, President Corey Aldridge, and Washington Representative Joel Rubin outline the coalition’s key policy priorities, the challenges facing transit agencies, and how industry stakeholders can work together to strengthen the voice of bus transit at the federal level.

Read More →
Ad Loading...
Amanda Wanke
Managementby StaffMarch 13, 2026

Des Moines DART CEO Joins Minneapolis Metro Transit

Amanda Wanke, who has worked at DART for 10 years, including the past 2½ years as CEO, will join Metro Transit as deputy chief operating officer, operations administration.

Read More →