PORTLAND, Ore. — Downtown Portland has developed something of a bad reputation. Since the COVID-19 pandemic, it's been a slow rebound for the area, marked by reduced foot traffic, soaring office vacancies, rampant unsheltered homelessness and a perception, at least, that the area isn't safe. But is it really as bad as it's cracked up to be?
The Story's Pat Dooris took a walk through downtown earlier this week. His assessment? It's a mixed bag. Downtown Portland isn't a total bombed-out hellscape like some folks like to say post-pandemic and 2020 protests. But neither is it the place it was even five years ago.
It can vary from block to block. Some streets appeared deserted, with smatterings of boarded-up and padlocked shops — businesses that have either closed, moved or transitioned online. There are office buildings that look much like they did a few years ago, but now they're half-empty, with most employees working from home.
According to industry analyst CoStar, nearly 22% of office space in downtown Portland is vacant. Vacancy rates are lower for retail space, less than 6%, which is actually better than it was in 2015. While office vacancy has been getting progressively worse, retail vacancy has gone through multiple peaks and valleys over the last decade and could actually be on the upswing.
Office vacancy through the Portland metro area has gone up dramatically since the pandemic, but it doesn't hold a candle to downtown on its own.
Even if Portland is a particularly dramatic specimen, the rise in office vacancy is part of a nationwide trend for cities. The pandemic accelerated growth in remote work, and many companies have moved their operations out to the suburbs.
There are also signs of recovery downtown — some blocks look much like they did before the pandemic. The Apple store recently removed the security fences installed after it was looted in 2020, though they did hedge their bets with a lattice-work of clear polycarbonate panels around the store's floor-to-ceiling glass windows.
And there are a few people out and about for roving reporters to question. Some told Dooris that they thought downtown was "scary," mentioned the pervasive smell of urine or remarked on the lack of activity. But still others told Dooris that they think downtown Portland might have bottomed out and is ready to rise again.
Peril of the arts
As musicians at the Oregon Symphony rehearse onstage at the Arlene Schnitzer Concert Hall, they're laser-focused — making sure they hit all the right notes.
But backstage, CEO Scott Showalter is worried.
"It's going to be a difficult business moving forward without support from our local community," he said.
Nonetheless, there's something magical about Southwest Main and Broadway in downtown Portland.
"When the arts district is up and vibrant and going, there's nothing like it," said Kirk Mouser, artistic director of nonprofit musical theater company Stumptown Stages.
Right now, Mouser's company is getting ready for a production of "The Full Monty." It opens next month at the Portland5 Center for the Arts.
A few weeks ago, The Story put a question to viewers: "Are you willing to come downtown to see a show or catch a concert?"
The responses were mixed. Some viewers had no problem at all coming downtown to support the local arts. Others said that they were afraid to make the trek — that downtown has changed and it's no longer safe. In both camps were people who said they've been coming downtown for years.
Whether that "unsafe" reputation is warranted or not, it's the perception that the downtown arts organizations are battling.
"The greatest threat to the Oregon Symphony today is, in fact, the perception that downtown is unsafe," Showalter said. "It's the number one reason by far that people are holding back from coming to live performances."
Showalter isn't just saying that, either. He's got data to back it up, gleaned from extensive surveys of the symphony's accustomed patrons.
The Oregon Symphony asked why people weren't renewing subscriptions. Most of the top eight responses had to do with the state of downtown Portland.
"Lack of police presence, homelessness, drug use, you name it — these issues are very familiar to all of us," Showalter said. "But they're impacting the Oregon Symphony whose business is predicated on in-person experiences especially."
There are other issues at play for organizations like the Oregon Symphony as well. No one gets into the arts to get rich, but across the board it's becoming more difficult to get by — and more expensive to put on a show.
"Our materials and supplies and just building a set, a putting a show up — we see the cost of wood, lumber, increasing significantly," said Mouser.
Local grants have dropped and Metro is raising the rent at both venues.
"Our rates, our total bill to use this facility, named for the Oregon Symphony, have doubled since 2016," Showalter said. "Local government, the city and Metro, have created a chasm of $1.5 million dollars more than was the case back in 2016."
"When you're losing money and yet expenses are increasing, you can kind of see the writing on the wall," Mouser said. "At some point you jump ship, or you just no longer exist."
And "jumping ship," Mouser acknowledged — moving elsewhere — is on the table if things don't turn around.
"For us to be able to survive and thrive in the future, we're going to need significant help and soon," Showalter said. "God forbid (without a change), we will become a shadow of our former selves."
If the lights of downtown Portland's arts district go dark, it'll leave a hole in the heart of the city, both men said. But they also have hope — and a request.
"Come back downtown," Showalter said. "I mean, that is the number one thing that we all need to do in droves ... is come to live performances at the Schnitz and around the region."
"If you want that Portland that you dream about, that you love, then be part of it," added Mouser. "Come downtown, see for yourself."
Filling the empty space
Last year, a study from UC Berkeley looked at the ways in which cities' downtown districts have recovered or failed to recover from the pandemic. They listed Portland near the very bottom for recovery — number 60 out of 62 cities studied across North America.
One of the researchers on the study told KGW that Portland was too reliant on office workers. Karen Chapple said that the cities that recovered faster are the ones who populated downtown in other ways.
"What they could do if they wanted to get better, if they wanted to look like San Diego — or New York, even, which is back at 78% of pre-pandemic levels — beef up your arts and entertainment sectors," Chapple said. "Tourism is bringing back a number of different cities."
It's no surprise that people in the arts industry agree. J.S. May, president of the Cultural Advocacy Coalition of Oregon, said that Oregonians may not realize the economic impact of the arts.
"People think about this being a small sector. Across the state of Oregon, we're $9.5 billion worth of business on an annual basis," May said. "The timber industry is $7 billion. So we're larger than than what you would think about as one of Oregon's core industries."
May said that the average person coming out to see a show will spend about $45 each on things outside of the theater or concert hall, things like dinner or drinks before the show.
Even here in downtown Portland, it isn't all doom, gloom and hand-wringing. There are fresh faces looking to bring something new to the space.
"Opening weekend is completely sold out, our field trips are full, we're filling up the following weekends as well," said Nick Fenster, managing director for the Northwest Children's Theater.
The staff at the Northwest Children's Theater are thrilled about moving into their new space downtown.
"We've always wanted to be downtown and specifically this neighborhood, on Broadway in the arts district, across from the Schnitzer and Newmark, Winningstad," Fenster said. "This is pretty much the ideal location for a theater company."
They renovated an old movie theater at Southwest Broadway and Main, signing a 30-year lease for the space.
"We are absolutely in it for the long haul," Fenster said. "We are taking the long view on this and I have absolute 100% confidence that in short order here, downtown is going to be the place to be."
They're ready to give families a reason to come back downtown, with shows, movies, classes and camps that are filling up quickly — and a lot more planned for the future.
"This is where Cinderella is going to open in a couple of weeks," Fenster added, "which is an original big band, tap musical version of the story taking place here in the round in our black box space."
Fenster said that they haven't had any concerns about safety in downtown Portland. They've got confidence in their building's security, and they're sure of the potential here — they want to be part of downtown Portland's future.
"I see it come to life when there's a performance across the street with the symphony, or I'Il see it come to life when there's a play at the Newmark," he said. "Part of the magic of coming to work every day is when I leave for the night and the Schnitzer is just coming to life and it's all lit up and there's a big crowd coming out of our parking lot, it just feels like we're kind of at the epicenter of things here."
Fenster echoed what Chapple and May were saying — that there may be a lot of vacancy at downtown office buildings, but they could always be filled with arts organizations like the Northwest Children's Theater.