August 17, 2016
By: Leo Canale, Senior Marketing Associate, JLL
Sacramento may be a little over 1.5 hours drive (without traffic!) from downtown San Francisco, but Millennials know it isn’t that far away from the Bay Area’s buoyant tech-driven economy.Sacramento’s appeal among Millennials has been well documented and that attraction for a Millennials powerful segment of the modern workforce is also attracting a greater diversity of employers. This, in turn, is fueling a spate of new development, especially in retail, entertainment and residential sectors.
The current project pipeline includes:
Golden 1 Center: Due to open in October, this state of the art entertainment and sports complex (photo, above) is the home of the NBA’s
Sacramento Kings and already creating an air of excitement in the city’s downtown core.
Eviva Midtown: Due for completion this month, this 118-unit market rate apartment development includes 5,000 square feet of ground floor retail space.
Ice Blocks: Now under construction,this urban lifestyle mixed-use development will create 145 residential units, 55,000 s.f. of retail and 46,000 s.f. of office space on three city blocks that formerly housed an ice factory.
Downtown Commons: This ongoing redevelopment of an older, downtown mall will result in a 250-room hotel, 50 condos, 630,000 s.f. of retail and 250,000 s.f. of office space adjacent to Golden 1 Center.
Sacramento Commons: Scheduled to begin by the end of the year, this project will deliver up to 1,400 hi-rise residential units and 74,000 s.f. of commercial space.
The Railyards: More than 3 million s.f. of office and retail space as well as various residential projects and a medical campus are planned for this site north of the city’s downtown core.
Vanir Tower: This 26-story downtown office tower is currently going through the development process.
“Most millennials crave an urban lifestyle with easy access to amenities such as retail, entertainment and transit. Reinforcing the 18-hour vibe in Sacramento is the development of major new mixed-use and retail developments within the downtown core such as Downtown Commons and Sacramento Commons,” says Rob Cole, an investment sales and capital markets specialist with JLL in Northern California.
Restaurants and cafes are also popping up along the main approaches to the Golden1 Center to capture foot traffic. Retail is thriving away from the new arena, as Sacramento pushes forward with its vision of an 18-hour downtown: A Whole Foods Market is planned in midtown, while longer term mixed use developments like the Railyards and the River District are proposing to bring over a million square feet of lifestyle retail and entertainment, expanding the city’s downtown core in the process.
Cole added: “In the past it was safe to say that no tenant would choose to locate in downtown Sacramento unless they had to. It was simply more expensive and less convenient than suburban locations. In 2015 this balance changed. Tenants are now choosing to relocate to downtown due to the perception that it will now be the true heart of the city.”
For more insight into the Sacramento market, read THE GRID, our very own review of Sacramento’s urban core.