By: John Sheaffer, Senior Research Analyst
Golden1 Center, the new $477 million arena for Sacramento’s NBA franchise, the Kings, won’t officially open until October, but it has already made an indelible mark on the fortunes of downtown Sacramento.
In fact, since the Kings’ construction team broke ground in October 2014, the real estate and businesses around the 19,000 seat sports and entertainment venue, have flourished in anticipation.
From its new offices two blocks southwest of the Arena at 500 Capitol Mall, JLL’s Sacramento team can see the arena rising and the transformation of downtown Sacramento from a “Monday-Friday government town” to a “24-7 Live-Work-Play” community.
Residential developments are planned and popping up throughout the downtown core and retail amenities are expanding too. At the northern end of downtown, the 244-acre Railyards development is the largest infill project in the country and will offer one million square feet or retail and 6,000 to 10,000 high rise housing units as well as office, entertainment real estate, museums, parks, a hospital and a 375,000 s.f. stadium for Major League Soccer – potentially doubling downtown’s ‘Arena Effect’.
All this is fuelling an office market that had already been steadily recovering coming out of the last recession. In the first quarter of the year, downtown saw its lowest office vacancy since 2007 – 13 percent –as companies continued migrating into downtown and more state agencies expanded.
Click here to check out “Drone Cam: 3/28/16” by Golden 1 Center.