Catalyzed by the opening of the Golden 1 Center and Downtown Commons this fall, the landscape of downtown Sacramento is changing drastically in 2016.
No longer will the downtown area be considered a Monday to Friday government town. It’s becoming an “18-hour city”—complete with a major mixed-use development that includes housing, retail options and a transportation hub. With rental rates expected to reach record highs, and the overall downtown market continuing to tighten, now is the time to plan your next move.
As more and more millennials become priced out of San Jose and San Francisco, Sacramento is taking advantage.
California’s state capitol is now the premiere destination for ex-Bay Area millennials, who make up 42.5 percent of Sacramento’s working population.
See what’s bringing so many into the urban core and how the city plans to keep them here going forward.
With the boundaries of the traditional downtown area set to expand, keep track of all the key projects through 2020 with our complete interactive timeline.
State of the art entertainment and sports complex
118 residential units, 5,000 s.f. retail
145 residential units, 55,000 s.f. retail, and 46,000 s.f. office*Currently being re-evaluated due to fire
137 residential units, 15 retail spaces
Ground floor retail conversation at gateway of Golden 1 Center
141 residential units and 41,000 s.f. commercial
250 room Kimpton Hotel, 50 condos, 630,000 s.f. retail and 250,000 s.f. office
Two towers scheduled for 1,400 residential units and 74,000 s.f. of commercial
6 story court tower in Railyard
1.0M s.f. retail, 2.3M s.f. office, various residential types and a medical campus
26 story office tower
Prime availability continues to dwindle across Sacramento, with strong rent growth momentum carrying over from last year.
A stable state government budget, sustained local employment growth and the construction of the Sacramento Kings’ new home—Golden 1 Center—remain the most dominant factors in driving rent prices and tenant demand forward.
Roughly defined, “The Grid” is Downtown and Midtown Sacramento.
Bordered by the Sacramento River on the West, the American River to the North, Highway 50 to the South and I-80 to the East, these dimensions give the area a “grid-style” layout—hence the name.
The main attraction, undoubtedly, is the Sacramento Kings’ new NBA arena, Golden 1 Center.
Located in the heart of the CBD, it is scheduled for completion this fall (2016). The 17,500-seat stadium has already drawn strong interest from developers, investors and users alike as downtown’s primary draw.
Adjacent to the arena, the mixed-use, 16-story tower Downtown Commons (or DoCo) is set to rise in 2017. It will bring a hotel, 50 residential units, 630,000 square feet of retail and 250,000 square feet of office space downtown—further enhancing the “18-hour urban core” concept.
In an attempt to bring residents back downtown, the City of Sacramento launched a campaign that called for an additional 10,000 residential units to be built across the urban core within the next 10 years.
This push to move Sacramento from a Monday through Friday “government town” into an “18-hour city”—a place where residents can work and play—initially brought out many skeptics.
But as it turns out, so far, so good.
By all indications, the city is on its way to hitting its goal—with additional developments like the 118-unit Eviva Midtown apartments and 134-unit Yamanee project on the horizon. These locations will also bring thousands of feet of new retail space to Midtown.
Several mixed-use projects have already broken ground while other mixed-use projects are on the horizon. The majority include both commercial and retail space on the ground and mezzanine levels.
We also expect the highly anticipated 26 story Vanir Tower and 30 story CalPERS project to begin construction shortly as developers finalize plans. These two towers will become the first office buildings built downtown since 2009.
To make the downtown area the true “heart of the city,” once and for all.
For years, tenants would only choose downtown if it was necessary for the business.
With the arena project nearly complete, it will be used as a hub to attract additional development—a concept that’s already paying dividends. Downtown is already becoming increasingly attractive for millennials thanks to its walkable, amenity-rich layout, which continues to expand.
The private sector is even coming back, too. A number of engineering firms have led the way back downtown from nearby submarkets like Roseville and Rocklin.
Since the arena groundbreaking alone in Q1 2015, office (Class A and B) rent prices have risen 11 percent downtown.
One of the latest projects, the 700 block of K Street—just mere steps from Golden 1 Center—is being completely gutted and will be reconstructed with restaurants, retail and residential units.
Overall, Sacramento’s outlook is strong as downtown continues to rise and city rebuilds its image.