Back in the spring, I wrote about a study that was done by the University of Toronto and the University of California, Berkeley that measured “downtown recoveries” using mobile phone data.

In other words, it looked at where people’s phones were lingering to try and determine if they were back in the office and doing things downtown.

The headline finding was that San Francisco had the lowest recovery quotient (RT) and that Salt Lake City had the highest, alongside cities like San Diego, Baltimore, and Bakersfield.

But why was there such a spread in recoveries?

One possible explanation was commute times. The cities with the lowest average commute times seemed to generally perform better in this study and have higher recovery quotients. But it’s maybe more nuanced than this.

Here is a recent Brookings article by Tracy Hadden Loh that looks at this same study. And to give just one example, she notes that San Diego’s airport happens to fall within the same zip code as its downtown. Meaning, airport traffic would have been picked up as downtown traffic.

The article also includes the above chart, showing the amount of downtown apartments built since 2019. I don’t think I knew that Chicago was so prolific.

The trend continues. BlackRock -- the world's largest asset manager with about 20,000 employees in more than 30 countries -- announced today that employees need to be in the office at least 4 days a week starting this September. This is an increase from the current 3 days a week.

You can't read the news today without seeing some sort of headline about the demise of downtowns. But what is clear from announcements like these is that we still have yet to reach an equilibrium. And it's probably just taking a lot longer than most people initially anticipated.

I know that this is a very divisive topic and that many of you think I'm old school for continuing to say this. But I fundamentally believe that there are irreplaceable benefits to in-person interactions among teams. I don't know, maybe it's because of my architecture background.

In architecture school you're expected to spend all of your time "working in studio." And even though you're often working and producing things on your own, you do it so that you can be around your peers, shout out questions when you need help, learn from their work, and go for burritos and beers together.

And it was such a fun and creative experience for me that I can't imagine what it would have been like had I been forced to work from my apartment. I probably would have had an equal number of burritos, but maybe a lot less beer?

The School of Cities at the University of Toronto and the Institute for Governmental Studies at the University of California, Berkeley have been using mobile phone data to track the recovery of 62 downtowns across North America. This work has been being published at downtownrecovery.com, but it has also been widely cited.

First, to be clear on how this works, the data they are collecting is not dependent on people actually making calls or actively consuming data on their phone; instead it is simply based on people having a phone with them and being physically located in one these 62 downtowns. It also covers the period between January 2019 and November 2022, and includes cities with least 350,000 people.

I'm not exactly sure how long the phones need to be in a particular place or how they treat time in their data, but the unit of measure is something that they call a "Point of Interest." This includes things like restaurants and shops, so presumably this data isn't just saying, " I went downtown and sat in my office for 8 hours." It could also be, "I went downtown and ate good pasta."

I say this because, based on my understanding of the data, having a high Recovery Quotient (RQ) could mean a number of different things. It could mean that more people are back in the office, but it could also mean that the downtown isn't a monoculture and that it has other things going on besides just work.

In any event, here's what they have found:

The headline finding is that San Francisco has the lowest RQ at 31% and Salt Lake City has the highest at 135%. There does appear to be a bias toward higher recoveries with mid-sized cities, and one of the reasons for this is that these recovery quotients appear to be correlated with average commute times:

Some of the other strongly correlated explanations, include the percentage of jobs in professional, scientific, and technical fields:

And the number of days that events were shut down during the pandemic (note the Canadian cities on the right below; welcome, New Orleans):

I suppose one way to grossly oversimplify these findings is to say that some people have been avoiding going downtown if they can't quickly drive there (and have to take transit), if their job more easily allows them to work from home, and if things were shut down for too long during the pandemic. Because if it was, they maybe forgot about all of the fun things that typically happen downtown.

Image: The School of Cities