K Street Businesses Close as Rent Goes Up Near Prospective Arena

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The new Kings arena will be just a stone’s throw away from the K Street corridor.

But look carefully, you’ll notice a lot of these buildings are vacant.

Tomorrow will mark the end of Blimpie’s 15-year stint along K Street. Owner Henry Patel tells us, it’s because of letters—received from his landlord and real estate broker—indicating Blimpie’s sandwiches can renew its lease, but only for two years. And the rent will be going up.

But the question is, why?

FOX40 called the company listed on the letters Patel received. On the other line is commercial real estate broker Dave Herrera with Collier’s International.

“Developers from within California and outside of Sacramento have been touring sites downtown within a couple block radius of the arena,” said Herrera.

He thinks within the next two years rent will go up in this area by as much as 50%.

“The arena is going to bring in 20,000 people. Therefore, people may stay there prior to the games,” Herrera said.

So, Herrera says, national chains may be inevitable.

What about smaller businesses?

“Smaller businesses are the concern for some of these groups trying to predict what their future will be,” said Herrera.

As for Blimpie’s, this one will be moving further along down K Street, away from the arena.

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