Movie Theater Attendance Still Lags

Entertainment-related foot traffic at U.S. commercial centers continues to rebound from levels seen in the early days of the pandemic, though movie theater attendance remains down 34% from pre-pandemic levels.

A new report from traffic analytics firm Placer.ai also noted that casinos, including hotel casinos, saw foot traffic decline 18.8% in 2022 compared with 2019. In contrast, “eatertainment” venues combining sports and games with on-site dining — such as Dave & Buster’s, Bowlero and Topgolf — saw foot traffic rise 3.8% from pre-pandemic levels.

Researchers said all three entertainment categories in 2022 posted traffic gains from 2021, with casinos rising 1%, eatertainment venues gaining 17.3% and movie theaters increasing 53.5%.

Executives of major theater chains have reported significant box office gains in the past few months, but the overall number of Hollywood movie releases has yet to return to pre-pandemic levels. Retail center owners counting on theaters to drive traffic are up against numerous big-media streaming services increasingly keeping customers at home.

“Despite the ease of watching movies at home, foot traffic data indicates that there is still a strong demand for an in-theater experience,” Placer.ai researchers said in a report March 23. Theaters are responding by adjusting pricing for certain “surge” periods, such as AMC Theatres’ move to charge more for seats in the middle of auditoriums during higher-demand evening showings.

Home Prices Drop

U.S. home prices declined for the seventh consecutive month in January, with notable drops in West Coast regions that had held up relatively well in recent months despite rising interest rates.

The latest data from the closely watched S&P CoreLogic Case-Shiller index showed January’s average sale prices were down 0.2% from the prior month. Prices were up 3.8% on annual basis, but that was down from the 5.6% annual growth rate seen in December 2022.

Like other analysts, authors of the monthly index cited lingering issues including high interest rates and affordability challenges now discouraging prospective buyers, including apartment renters, in most U.S. regions. Other disruptions including banking industry volatility and persistent inflation could put further downward pressure on home purchases.

“Mortgage financing and the prospect of economic weakness are therefore likely to remain a headwind for housing prices for at least the next several months,” Craig Lazzara, managing director at S&P Dow Jones Indexes, said in a statement Tuesday.

Researchers said declining prices are now being seen in large western regions that until just recently had seen strong annual price growth, including San Francisco, San Diego, Seattle and Portland, Oregon. Cities showing the highest annual price gains in January included Miami at 13.8%, Tampa, Florida, at 10.5% and Atlanta at 8.4%.

Office Attendance Ticks Up

Office attendance in 10 large U.S. cities averaged 48.4% of pre-pandemic levels for the week ended March 22, up slightly from 47.3% in the previous week, according to the latest tracking by security technology firm Kastle Systems.

The firm’s “Back to Work Barometer,” based on anonymous keycard data from clients’ office properties, showed office use remaining close to the pandemic high of 50.1% reached in the week ended Feb. 22.

But attendance remains stubbornly below 50% of pre-pandemic levels in most major U.S. cities, as many workers now routinely spend at least part of the workweek at home or in other locations outside a traditional office.

The latest numbers showed all of the barometer cities posting increases from the prior week except for Washington, D.C. Figures were topped by Austin, Texas, at 58%, Houston at 57.6%, Dallas at 51.5% and Chicago at 50.8%.