BUFFALO, N.Y. (WKBW) — After decades of decline, Downtown Buffalo was experiencing an incredible resurgence: new construction, high office occupancy rates, a growing tax base. But then came the pandemic, and like many urban areas in America, there are now concerns that the renaissance is rusting.
About 20,000 fewer employees are driving into downtown each day, with many working remotely at least a few days per week. At the same time, the boom in housing has come to a halt, with many developers unable to access favorable financing from banks that tightened commercial lending in light of inflation and changes to federal monetary policy.
Add it up, and much of the progress we were seeing during the mid-to-late 2010s is on pause.
But some key stakeholders – including leaders in government, academia and business – tell 7 News the comeback continues.
Mitch Nowakowski – (D) Buffalo Common Council, Fillmore District
“What we find in Downtown Buffalo and even throughout the city, it either has to be luxury or it has to be for a certain demographic of poverty, and we are missing the middle class. We’re missing people who are making $50,000, $60,000, $70,000 that are working professionals, and we’re missing the opportunity to provide them housing to live in our city and in our Downtown core.”
Michael Schmand – Executive Director, Buffalo Place
“I’ve been here for quite a while. Bob (Shibley) and I started working the Queen City Hub plan 20-some years ago. That’s when we were rusting. There was nothing going on. There was no traffic on Main Street. We had the train coming up and down. Since then, take a look at the investments that have taken place. The billions of dollars of investment that have taken place in the Downtown core, from Canalside to bringing traffic back to Main Street… Take a look at our waterfront right now. It’s not rusting. Our Downtown isn’t rusting. It’s adapting.”
Albert Ramia – Owner, Sue’s Deli
“Our biggest difference right now (compared to before the pandemic) is lack of patrons, lack of people around, walking around. So we need basically more people back to the offices if we can, and more people Downtown, whether they’re living here or doing business or whatever, just bring people.”
Nadine Marrero – Executive Director, City of Buffalo Office of Strategic Planning
“There are challenges with office buildings and their layouts of making them apartments. You need to have a certain number of windows. You need to have plumbing in the middle. The elevators need to work differently. So there will be challenges in some of these buildings with conversion, but some of them will need to convert. We do not and will not likely see the need for the same amount of office space, and this is a trend we started 20 years ago.”
Robert Shibley – Director, Rudy Bruner Center for Urban Excellence, UB School of Architecture and Planning
“We have to find a richer family of uses for our older buildings Downtown. Too many of them are empty… All of that threatens and challenges us to find new vehicles to support development Downtown that really recognize change of use in Class B, C office to residential or other mixed uses.”
Michael Manning – VP of Leasing, Main Place Liberty Group
“As the office market demand shrinks because people are working from home more and users have less need for space, the (Class) B, the C buildings just are naturally going to suffer.”
"I believe in this city."
In the heart of downtown Buffalo, developer Douglas Jemal stands in his office atop the city’s tallest building, Seneca One, reflecting on a remarkable transformation. Jemal, who purchased the largely vacant skyscraper in 2016 for $12.6 million, has overseen a $150 million makeover that has turned the building into a mixed-use hub featuring apartments, event space, eateries, a bar, and offices for companies like M&T Bank and Highmark Blue Cross Blue Shield.
"I think it’s indeed an honor," Jemal said. "I recognized the potential of the building when I first bought it... and it’s nice to see it come to fruition."
Jemal envisions Seneca One as "an engine... a high-performance engine" that serves the community. "It was a vision... it was a feeling," he shared. "So I develop with feeling… not just looking at a piece of paper."
The developer sees Seneca One as the "tower and heartbeat of Buffalo," stating, “It sits tall and proud over the entire city." Since his acquisition of the building, Jemal's downtown portfolio has expanded to include the Hyatt Regency, the HSBC Atrium, the Buffalo News building, and the Statler. “I have a fortune invested in Buffalo," he added.
Despite this success, Jemal acknowledges the difficulties facing developers in the city. He pointed to the continued recovery from the COVID-19 pandemic, which led to the exodus of 20,000 to 30,000 workers from downtown, along with prevailing economic challenges.
The pandemic halted many projects, with Jemal explaining, "After COVID, you know it stopped everything... interest rates went high.” He expressed concern over financing challenges that slow progress on what he considers key developments, such as the historic Statler building, which requires an additional $140 million in funding for its renovation into over 500 apartments and 200 hotel rooms.
"It's going to take two years to complete the project... you’re eaten by the clock," Jemal said, referring to the mounting interest costs.
Jemal says he remains hopeful for the future, advocating for improved communication between the business community and local government. "I think the elected officials need to pay more attention to the business community... for the betterment of the entire community," he stated.
Jemal also called for tax incentives for small businesses and residents to invigorate the downtown area. "Show them that you are open for business," he urged. "Give the residents that move into the city a tax break... you’ll see they’ll move into the city."
Despite the setbacks, Jemal remains optimistic about Buffalo's future. "I believe in this community and I believe in this city... it has not been an easy four or five years for anybody in real estate," he said. "I can’t wake up and say I’m pessimistic because I can’t function. So I have to be optimistic."
When asked about the future of downtown Buffalo in a decade, Jemal says he hopes to see a vibrant community and to leave a lasting legacy. "I think it’s all attainable... with just a little bit of communication and working together," he concluded.
"It just needs... that shot of life again."
Tucked away in Downtown Buffalo is a spot where the lunch rush meets the sounds of pink lemonade pouring and an owner saying hello to customers both new and old.
Panaziopis Kyriakopoulos, also known as Taki, opened Taki’s Restaurant on Court Street in 1998 and has seen it all downtown.
“Restaurant business. I love it. I'm very social guy,” Taki said. “I like to be around people, and it's been fun a lot upside down, but I love what I do. That's why I'm still here.”
When he opened the restaurant, he said his dream was for it to be busy every day.
“Because downtown is always ups and downs. It took a long time to reach the point, because, like I said, it's a lot of big companies moving in and out. So that's kind of like, make you, break you,” Taki said.
With the highs and lows of downtown came the COVID-19 pandemic, which brought much of the city to a standstill.
“Downtown was a little quieter because then a lot of people had to work from home, and that was a big blow for us,” Taki said.
The pandemic wasn't the first time downtown faced a setback and it wouldn't be the last.
Before Covid, the city had seen a cycle of boom and bust.
Paul Lang, a managing principal with Carmina Wood Design, saw an early wave of revitalization.
“I think we played a pivotal role in some pretty minor projects for the City of Buffalo. You know, Hotel Lafayette probably is kind of a capstone of a lot of that,” Lang said.
The firm revamped the Hotel Lafayette and completed the project in 2013 — a turning point for downtown's renewal.
“It was a great example to see something that had been derelict, abandoned for the most part, you know, certainly underutilized, be brought back. And now, instead of being a blemish, being kind of a celebrated point,” Lang added.
And while the firm's office was still downtown, more projects followed. Lang saw the growth first-hand.
“A lot of restaurants opened. A lot of bars and restaurants open. So we went from kind of being in a no man's land where you had to pack your lunch to a plethora of options available just walk out of your door,” Lang said. “It was cool. It was kind of energizing at times. Obviously, COVID kind of put a damper on some of that.”
COVID’s impact on the city of Buffalo was felt long after it hit — even contributing to the downfall of Braymiller Market on Ellicott Street.
It first opened in 2021 as part of a mixed-use project that also included more than 200 affordable apartments. Now the building sits vacant — adding to concerns about downtown Buffalo becoming a food desert.
“With an estimated 30,000 fewer people in Downtown Buffalo on a daily basis — a shift to remote work, extended business closures — the economic and foot traffic conditions required to sustain the market were severely, severely impacted,” Acting Mayor Chris Scanlon said.
“Less workers downtown, a lot of buildings have emptied out. There's no — we're talking about, you know, last year now— a lot of empty office spaces, people working from a home, and it was a big blow for us because we need all these customers here,” Taki said.
“You don't quite see the same energy you had pre-2020, downtown right now, but it's still there. It just needs to kind of use that shot of life again,” Lang added.
And that shot of life may be on the way. Lawmakers are looking at transforming empty office space into housing.
Ingram Micro recently announced it’s moving 1300 workers from Williamsville to new headquarters on West Genesee Street in the shadow of city hall.
“Discouraged is one thing. Defeated is another. I don't want people to give up on it. The potential is there. The potential is still huge,” Lang said.
“I think I did my share the last 27 years to make the city of Buffalo a better place. So I think if each one of us put a little extra effort, we can make it happen. But have to be all of us together,” Taki said.
"There's definitely hope."
While Downtown has its fair share of critics, there’s one woman who lives by the Marv Levy mantra: there’s nowhere she’d rather be than right here, right now.
“When we saw this place, we were like, this is home, this is it,” said Mansi Demla, who’s lived in Downtown Buffalo since 2018.
She’s lived in Virginia and Georgia and grew up in India, but says she’s here to stay in Buffalo, despite the trend.
She tells me she loves being able to walk to her gym, Sabres games, Bisons games and to her favorite lunch spot, Sue’s Deli.
It’s the convenience and the kindness.
“The restaurants like Big Ditch or Frankie Primo's, they know what our order is, I'm like oh this is so special! They treat me like they've known me for so long; it's like a family,” said Delma.
She says there’s room to grow in a few areas, like making the NFTA Metro Rail more accessible, adding more local businesses and maybe a grocery store.
“I mean, I don't think we need a whole lot, so I think there's definitely hope,” said Demla. “This place is special, so we're gonna continue growing here."
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