How Pittsburgh is banking on small business
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A vacant storefront is now a mural celebrating Pittsburgh's heritage on Smithfield Street thanks to Pittsburgh Downtown Partnership. Photo: Ryan Deto/Axios
Pittsburgh leaders are betting small businesses are the city's secret sauce.
Why it matters: After losing a third of its foot traffic since 2019, Downtown Pittsburgh's recovery may hinge on whether small local shops can bring people and spending back.
State of play: The Pittsburgh Downtown Partnership (PDP) this year started a Vibrancy Initiative focused on making it easier to start small businesses in the neighborhood using a three-pronged approach:
- Offering temporary rent abatement funding and allowing short-term leases for pop-up businesses.
- Using public art installations to fill vacant storefronts.
- Improving infrastructure around the neighborhood to make it more attractive for businesses to move in.
Follow the money: PDP raised $1.5 million from philanthropic groups for its small business initiative, said PDP president Jeremy Waldrup.
- The state, county and city are also investing about $90 million in the neighborhood, with the goal of attracting more than $600 million in investment.
Case in point: The group allocated about $400,000 in rent abatement, helping businesses like De Fer Coffee & Tea and The Silly Goose Unapologetic Gifts & Novelties, who told Axios in March they plan to stay Downtown long-term.
- The Moonshot Museum set up a pop-up simulation lab across from the new Arts Landing park to attract more families to the area, after a request from PDP.
- Infrastructure upgrades — from big projects like the Market Square upgrade to fixing sidewalks and broken curbs — are being completed with guidance from PDP and city government.
By the numbers: Downtown's business district has only recovered about two-thirds of its daily activity compared to 2019, according to data from the PDP.
- It lost over 60 businesses after the pandemic, more than 15% of its total business inventory, according to Waldrup.
Yes, but: PDP has added 28 small businesses, pop-ups and art installations since 2025.
What they're saying: Waldrup said attracting residents and shoppers is key to keeping people spending in Downtown, and that sometimes means getting more creative than just accepting businesses that pay the most rent, like big bank branches.
- "We have seen a proliferation of banks, and those pay top dollar, but we don't want a Downtown full of branches. What are we doing to support other types of users?" he said.
- Pittsburgh Mayor Corey O'Connor told WTAE last month that Downtown's small businesses have given the neighborhood a new vibrancy.
The latest: PNC's requirement for many of its 11,000 regional employees to return Downtown started this week.
- U.S. Rep. Summer Lee (D-Pittsburgh) recently announced $1 million in federal funds to help convert old office buildings into affordable housing, joining other efforts to convert the neighborhood's large number of office buildings into housing.
The bottom line: Waldrup is bullish that more office workers and residents being Downtown will help the neighborhood, but it's going to take more than that.
- "We need Pittsburgh to invest as well. We can bring all the new businesses, but unless people change their shopping habits and come Downtown more, these things aren't going to be sustainable."