About the Industry
The Rise of Cities
According to the World Health Organization, in 1960, 34 percent of the world’s population lived in urban areas. In 2018, that number was 55 percent. By 2050, it is projected to be 68 percent. The total metro population living within four miles of city hall, according to the U.S. Census, is more than 54 million – almost 21 percent of America’s metro population. That’s 17.5 percent of the national population living within a quick car ride, 30-minute bike ride or hour-long walk of the center of a city.
What is Urban Place Management?
Since 1970, property and business owners in cities throughout North America have realized that revitalizing and sustaining vibrant downtowns, city centers and neighborhood districts requires special attention beyond the services city administrations could provide alone. These private-sector owners came together, with funding from the property and business owners, to form nonprofit management associations which deliver key services and activities within the boundaries of their districts. These place management organizations are often called Business Improvement Districts (BIDs), Business Improvement Areas (BIAs), Partnerships and Alliances.
Place management professionals drive significant change in every major metropolitan area in North America in an industry that is growing rapidly around the globe. IDA members are involved in all segments of city center management (planning, leadership, communications and marketing, economic development, and policy and advocacy) and in all types of organizations (nonprofit, government, and business). They develop tools and strategies addressing a broad range of issues impacting how people live, work and play in cities.
From urban place management organizations to our global networks and strategic partners, every IDA member plays an active role in creating a robust and diverse community of practitioners. Our members are downtown champions who bring urban centers to life.
Great Cities and Regions Start Downtown
A strong downtown is critical for a successful city and region. Downtowns and center cities are where people, capital, and ideas coalesce due to size, proximity and density. The Value of U.S. Downtowns and Center Cities: Second Edition articulates the inherent value a downtown provides to the greater city, highlighting a downtown’s unique and impactful contributions while accounting for 100+ key data points based on the principles of economy, inclusion, vibrancy, identity, and resilience. The second edition updates the report with data and analysis that expands the scope to a total of 24 downtowns with urban place management organizations across the United States. With two years of data, IDA grouped each of the center cities into one of three downtown tiers: Emerging Downtowns, Growing Downtowns and Established Downtowns. These tiers are defined by stage of development of the district in relation to its city and region, and based on average growth in employment, residential density, population growth, job density and assessed value per square mile. Read the full report to learn more.
The methodology and data standard used in The Value of U.S. Downtowns and Center Cities will serve as a tool IDA continues to offer to members. The information from the downtown cohorts will inform the development of a new “IDA Vitality Index” powered by Stantec. This novel tool will standardize the value of downtown for a range of stakeholders; create a useful set of tools for replicable, data-driven measurement; and define a baseline for assessment of progress and peer comparison. Interested in being involved in a future study? Contact Cathy Lin, Director of Research, to learn more about the project.
The Value of Investing in Canadian Downtowns is a ‘living’ project and the first of its kind examining 17 downtowns across Canada to assess changes in attitudes, perceptions, functionality and performance over time. This project is envisaged to act as a resource for city builders, compiling evidence-based research that illustrates the importance of investing in downtowns. It provides an extensive portrait of the contributions being made by downtown areas across Canada, highlighting innovative approaches to revitalization and efforts being applied across the nation.
Join the Narrative
For decades urban place management professionals have been waking up each day, determined to improve their cities, make urban neighborhoods more livable, strategically fill vacant buildings, activate public spaces, and much more. They have had great success, but, too often their work goes unnoticed by the general public. IDA’s Urban Place Management Narrative Toolkit provides a framework for communicating IDA members’ commitment to shaping dynamic city centers all around the world. It includes key messages and facts about the downtown management industry.
What is the Size of the Industry?
The industry consists of 4,000+ place management organizations globally with 2,500 in North America employing 100,000 people and paying $3 billion in wages. On average, each organization provides $1.2 million in services in their districts to help businesses thrive and to make the district a great place for workers, residents and visitors.
The top 20 cities in the U.S. and Canada benefit from a combined investment of $500 million dollars in public space improvements financed by private sector assessments alone. The top 15 cities in the U.S. receive direct private investment of $400 million a year through BID assessments alone. The top five cities in Canada receive direct private investment of $73 million a year through BIAs (Business Improvement Areas).
How are Place Management Organizations Funded?
Downtown management organizations are typically nonprofits that are primarily funded by a special assessment on the private properties within their district. For example, many highly visible public spaces, like Times Square or Denver’s 16th Street Mall, are managed by our members. Our member organizations are responsible for marketing the district, hosting events to attract customers for retailers, organizing events like Restaurant Week, and even helping to fill vacant storefronts.
The last 50 years of public-private partnerships managing and improving public space has proved successful. More recently we are seeing an increasing number of new Business Improvement Districts formed. While North America has employed property-based assessments for more than 45 years, countries across the globe are increasingly employing this technique to regenerate the urban experience.