Residential and Office Projects to Increase Downtown Profile in 2021
(May 11, 2021) – First quarter trends show promising growth and recovery for downtown Sacramento
Development activity in downtown Sacramento continued in Q1 2021 with residential and office growth according to a new investment activity snapshot released today by the Downtown Sacramento Partnership. With 29% more square feet in development in Q1 2021 than a year ago, continued interest in the region’s urban core indicates promising growth ahead.
Key takeaways from Q1:
- Overall office vacancy downtown has only increased by 1% from Q1 2020, while Class C vacancy decreased by 1%.
- The number of residential units under construction has increased by 21% from a year ago. 2,648 units are now under construction, including Mercy Housing’s Capitol Park Hotel project that will convert former SRO hotel into 134 permanent supportive housing units for formerly homeless individuals.
- Completed residential units has increased 35% since 2015 with a total of 1,816 units created in Q1 2021.
- Downtown is still a top destination for new businesses with 7 new businesses opening in Q1 2021 and another 14 more anticipated to open this year.
“While there’s no denying the pandemic had a tremendous impact on our urban core, Downtown is still a desirable place for people to live, work, play and invest,” said Michael Ault, executive director of the Downtown Sacramento Partnership. “As we move into the recovery stage, the development and growth taking place Downtown will lead our region to a brighter future.”
Downtown Sacramento Partnership publishes quarterly reports with information covering pedestrian traffic, downtown demographics, development projects, investment activity, office market inventory and retail market trends. Access reports at www.downtownsac.org/about/reports.
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