The Sacramento Railyards in Downtown Sacramento will be an important part of continued economic growth in the Sacramento region. By diversifying the types of employment in downtown Sacramento from largely public sector jobs to a more balanced mix that includes more private sector jobs such as medical, innovation based, and other tech employment that offer higher wages, The Railyards will “develop a sustainable local economy that can take the city into the next generation,” according to Frank Myers, partner with Downtown Railyard Venture, LLC.
The Railyards: Developing for Diversity
The Sacramento Railyards is being developed around the concept of a mixed-use region that focuses on economic diversity. Economic diversity has long been considered the gold-standard for any region that wishes to achieve goals of economic stability and growth. By making it possible for a variety of sectors, industries, and employers to succeed in Sacramento’s Railyards, the entire region is poised to benefit from this diversity.
So what types of employers will be moving to and investing in Sacramento’s mixed-use, urban environment?
Kaiser Permanente Medical Center
“At the Railyards, we’ve been fortunate to be able to attract a couple of major employers so far,” says Downtown Railyard Venture, LLC. partner Frank Myers. “The Kaiser project is quite large, is expected to be 1.2M square feet, and accommodate over 3500 employees at completion.”
“Bringing our services to downtown allows us to improve geographic access for many of our more than 740,000 Greater Sacramento-area members,” said Gregory A. Adams, group president and regional president of Kaiser Foundation Hospitals and Health Plan, Inc., in Northern California about Kaiser's plans to build a hospital at the Sacramento Railyards. “One of the major reasons we chose this site is because of its central location and proximity to Interstate 5, light rail and the Capitol Corridor.”
The healthcare industry isn’t the only major employer to show interest in Sacramento’s new urban region, either.
Major League Soccer Stadium
A Major League Soccer (MLS) Stadium will thrill fans of the sport. But the entire Sacramento region will be able to cheer about the economic benefit of bringing the MLS stadium to Sacramento’s Railyards. It will bring an anticipated $200 million in economic activity during construction and more than $30 million per year in economic activity in Sacramento once it’s open.
Tech and Creative Companies
Technological innovation is at the core of the Sacramento Railyards development project, and forward-facing companies will find many reasons to invest in Sacramento’s “innovation hub.” Companies will find technologically enabled workspaces designed to meet their needs, and close proximity to transit will connect this new urban tech center with the Bay Area.
Developers are excited to bring creative workspaces to the urban environment. Unlike a traditional “cubicle” office environment, creative workspaces are designed to inspire collaboration and creativity from the people within, and are often favored by forward-thinking, innovative tech companies, or creative businesses in industries such as designers, web developers, photographers, and other artists.
The Railyards’ downtown location benefits both tech companies and innovation startups. The Sacramento Valley Station, the 7th busiest AMTRAK terminal in the US, is on The Railyards’ doorstep providing companies with a short and productive train ride from Sacramento to the Bay Area tech and investment hubs of San Jose and San Francisco, all without having to fight traffic.
Today’s employers are moving their corporate and regional headquarters back to downtown locations. The Railyards’ ability to offer these companies larger lots in a Downtown location is a competitive advantage for Sacramento because tech and innovation companies prefer office space with large, modern floorplates and ‘move in’ ready physical infrastructure.
One of the biggest reasons that major employers look to relocate and invest in urban areas is to attract and retain a talented workforce. A mixed-use urban environment is a valuable recruiting tool, particularly when the nearby area offers walkable amenities that potential employees will use. Local businesses will thrive in this environment, particularly if they offer services and products to this growing workforce. Local amenities such as yoga studios, coffee shops, retailers and restaurants will find a varied and willing base of customers from the employees and residents at The Railyards.
Sacramento’s new urban core will also be an attractive location for national chains of retailers, restaurants, and movie theaters, as well. Not only will these brand name employees offer amenities to the residents, visitors, and employees of The Railyards, but will add their own diversity to the economy, as well.
Urban areas like The Railyards also attract businesses looking for bikeable, walkable and transit-accessible locations in order to attract workers. Younger, urban workers want to get out of their cars, and this age group of workers is growing. In Sacramento, a record number of young professionals are looking for opportunities to work downtown, and The Railyards has the network of urban amenities, bike paths, walking corridors, and multiple light rail stops that make living and working downtown possible and enjoyable.
The urban amenities that make going downtown an exciting day out - shopping, dining, and entertainment - make doing business easier because business meetings and lunches can happen right around the corner from the office at local coffee shops and restaurants. After work, employees and executives alike can relax in The Railyards Central Shops district, at a game at the Major-League Soccer stadium, in The Railyards’ parks and or by the river. When companies are looking to relocate to find great talent, urban centers like The Railyards that have these amenities for workers will rise to the top of the list.
The Sacramento Railyards developers understand that a diverse mix of businesses and employers is the driving force behind the success of the region as an up-and-coming urban destination. Major corporate employers, small local businesses, national chains, creative companies, retailers and restaurants will all add to the economic diversity, growth, and sustainability of the region, and ultimately, to the greater Sacramento region, as well.
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