Golden 1 Center Fuels Economic Development in Downtown Sacramento | Q2 Activity & Investment
Economic development spurred by the construction of Golden 1 Center is surging in Sacramento’s urban core and news of the recent court victory is ramping up more interest.
A major indicator of the arena’s impact on economic development can be seen in the volume of calls received by DSP from brokers, developers, and new businesses, hoping to invest in downtown. “This time last year, I would get an average three calls per week,” said Valerie Mamone-Werder, senior manager of business development of DSP. “I’m now fielding about three calls per day from interested parties.”
Further, telltale signs are demonstrating an investment upswing in downtown as evidenced by the rise in the number of buildings sold over the last 18 months. “I could count on one hand the number of buildings sold in downtown Sacramento from 2011 – 2013,” said Mamone-Werder. “Since January of 2014, 18 buildings have changed hands, an average of one per month.”
Continued Mamone-Werder, “We are already seeing the catalytic effects of the arena with multiple property transactions taking place, new investors looking to Sacramento, and entrepreneurs are starting to view downtown Sacramento as an opportunity location.”
A sign of the growing economic comeback: demand for high-value ground floor retail is accelerating. Following a steady increase of new ground floor business during 2013 and 2014, the first two quarters of 2015 have seen 12 new businesses open their doors downtown with nine more slated to open by the end of next quarter in September 2015.
And, it’s not just business and investors heading back downtown, new residents are clamoring to join the excitement. In DSP’s recent office market study nearly half of those polled indicated they would be interested in living in downtown Sacramento once the arena is built, especially among young adults whose interest nearly doubled.
Because of catalytic projects like Golden 1 Center, downtown Sacramento is well on its way to becoming a vibrant, economically viable urban district for business, investors and residents alike.
Download the Development Investment & Activity Q2 2015 report.