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Retail, office, hotel development boosted by ‘Stadium Effect’



The 49ers’ new home, Levi Stadium, has prompted developers to position their projects close by in the hope of basking in the stadium’s popularity.

The high-profile projects include two mixed-use developments to be set up adjacent to the stadium.  Both these will consist of offices, retail and hotels.  Around $3bn worth of hotels, residences, retail centers and office building are due to be constructed close to the stadium. 

The president of Bixby Land has stated that the stadium brings vibrancy to the area where the group is buying, developing and leasing several buildings.  

Although most of the development probably would have happened anyway due to the technology boom that has occurred over the past three years, analysts say the much of the activity is due to what is called the ‘stadium effect’.  Local official hope that Levi’s stadium will have the same effect as AT&T Park had on the China Basin district, with the anchoring of restaurants, residential units, tech companies and office buildings.

The stadium has created more interest in Santa Clara and north San Jose.  The area around a stadium gets national attention and changes people’s perception of the area.    

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