The main issue facing businesses in Downtown Pittsburgh isn't going away.
"The return to work has been slow for many reasons," said Jeremy Waldrup, President and CEO of Pittsburgh Downtown Partnership.
As more people opt for a hybrid or fully remote work schedule, it's keeping dollars away from local retailers that were more present pre-pandemic. Data from PDP shows about 84,000 people came to downtown each day in January, a 34 percent drop from 2019.
Downtown office building employee capacity is at 22 percent.
Waldrup is hopeful those numbers will continue to go up, especially Tuesday through Thursday, when more people are going into the office.
"On a Wednesday, our parking garages are hitting 80 to 85 percent full, which is back to those pre-COVID levels, and that's certainly had an impact on our business community, particularly our restaurants," he said.
Still, with hybrid and remote working likely here to stay, leaders in many cities are looking at new strategies to attract and maintain businesses.
In Pittsburgh, that means continuing to build certain areas like the Cultural District as destinations and focusing more on growing the number of people living downtown instead of occupancy in offices.
In his most recent comprehensive financial report of Pittsburgh released in April, City Controller Michael Lamb wrote that shift seems most likely. In 2021, only 36 percent of the workforce had returned to downtown offices. Meanwhile, residential occupancy in greater downtown was over 90 percent.
Waldrup says there are about 7,300 people living in the Golden Triangle now, but he'd like to see that number double over the next ten years.
"I think that that will support restaurants and retailers. It will support many of our beautiful, older office buildings and giving kind of a new life to these buildings, and providing a great neighborhood for folks to live in and be a part of."
The City has already started repurposing old office and retail space for new stores and living space.
The former Kaufmann's Building has since been renovated to include a hotel, apartments, shops, and most recently, an urban Target store.
Opened in summer 2022, Target branded the store as smaller in size, but still a one-stop-shop for customers.
"Each new Target store fits into a community like a puzzle piece, filling its needs while fitting in with its vibe," said Jeremy Petit, store director at the Pittsburgh Downtown store. "In downtown Pittsburgh, this meant opening an urban store that could offer a wide grocery assortment — within a 10,000-square-foot space. Even better— by stocking these essentials, the store eliminated what was once a food desert in the community."
Waldrup says business at the Downtown Target store has shown how much the area needed it.
"Business is booming there," he said. "I know that they are exceeding their sales goals, I think wildly beating expectations from their corporate offices. We expect those numbers to continue to increase as additional retail opens up on that block.
Burlington Coat Factory is expected to move from its current location on Smithfield St. to the former Kaufmann's building.
Along with addressing a slow return to work, Waldrup says he has also heard business' concerns about public safety.
With an uptick in violence and drug use in the area, Waldrup says they are working closely with City leaders and public safety to find solutions.
He feels the City's plans so far have been encouraging.
"We're expecting to have 15 beat officers, two sergeants and a lieutenant, which will transform policing in Downtown Pittsburgh and provide additional resources for folks to tap into. I think that's in direct response to concerns that folks have had. I think this strategy is exactly what we need moving forward."
Still, he assured business owners and customers that downtown is safe, adding if people want to see a thriving downtown, it's up to everyone to support that concept.
"It's kind of incumbent on our region to get down here and patronize these businesses," he said. "Folks say they want a downtown with great shopping and dining options. It's on all of us to get down here and support these folks. They've been through a lot."
