Bakersfield, CA Economic Overview
Bakersfield is the seat of Kern County, near the southern end of the fertile San Joaquin Valley in California's Central Valley Region. The City of Bakersfield itself is home to nearly 383,000 residents, while the Bakersfield-Delano Metropolitan Statistical Area has a population of nearly 895,000 people. Strategically located 100 miles north of Los Angeles and 300 miles southeast of the state capital in Sacramento, the commercial real estate market in Bakersfield is driven in large part by the area's blend of agricultural and oil producing industry.
No longer a stopover for travelers going between Los Angeles and San Francisco, Bakersfield has a healthy economy thanks to its robust oil and agricultural businesses. In fact, Kern County is the oil-producing county with the most yield in the entire U.S. and the second-most productive agricultural county in the nation.
With a median household income of over $61,000 and an unemployment rate of under 10%, the economy of Bakersfield is strong and expanding. Last year alone, the median household income in Bakersfield increased by nearly 5% and the employment base increased by almost 6% for the over 164,000 people employed in the city.
Bakersfield, CA Commercial Real Estate Market
The commercial real estate market in Bakersfield is located in the middle of one of the largest economies in the world, placing the city within four hours of 90% of California's population. In addition to the agriculture and oil industries, Bakersfield has also become a cutting-edge technology hub and home to widely recognized companies such as Nestle, State Farm Insurance, Chevron, Aera Energy, and Occidental Gas and Petroleum.
Bakersfield and the metropolitan statistical area is recognized around the world as the #1 oil producing county in the U.S., accounting for 10% of the nation's oil production; #1 metro area for the fastest growing workforce, #2 producing county for agricultural commodities, #2 metro area for millennial job growth creation, #4 region for STEM job creation, and the #5 metro area for upward mobility.
The key industry clusters in Bakersfield and Kern County are:
- Aerospace & Defense - with both the China Lake Naval Weapons Air Station and Edwards Air Force Base located in the area, Bakersfield and Kern County are in the middle of California's military and defense industrial base.
- Energy & Natural Resources - the area is the leading provider for California for both traditional energy and renewable energy, and is also a leading producer of natural gas, hydro-electric power, and geothermal energy.
- Health Care Services - demand for highly skilled and innovative healthcare facilities and practitioners continues to grow to match the increase in the region's population. Bakersfield is home to a growing number of health care facilities that are investing in the latest technologies and treatment options.
- Transportation, Logistics & Advanced Manufacturing - the area is home to major distribution centers such as IKEA, Target, American Tire, Frito Lay, and Nestle. Key to the growth of the transportation industry in Bakersfield is its oil and agricultural industries, which are able to leverage the area's transportation, logistics, and manufacturing facilities.
- Value-Added Agriculture - the agricultural industry in Bakersfield and Kern County generates over 20% of the County's gross domestic product and employs nearly 20% of the workforce.
Across all asset classes of commercial real estate in Bakersfield, lease rates continue to rise and vacancy ratios continue to decrease. In 2016 alone, asking sales prices for multifamily property in Bakersfield increased by 12.5%, office property in the city increased by 0.5%, and prices for industrial property in Bakersfield increased by 10%.
Bakersfield, CA Office Sales Volume
Data provided by Yardi Matrix, for properties larger than 50K SF, which sold at over $5M.
Bakersfield, CA Office Transactions
Data provided by Yardi Matrix, for properties larger than 50K SF, which sold at over $5M.
Bakersfield, CA Commercial Inventory Breakdown
Office Spaces
Total: 5,672,085 SF
By square footage range:
- 50k to 100k SF: 2,924,913 SF / 51.57% of total office
- 100k to 500k SF: 2,191,172 SF / 38.63% of total office
- 500k to 1M SF: 556,000 SF / 9.8% of total office
By class:
- Class A: 1,667,839 SF / 29.4% of total office
- Class B: 2,991,525 SF / 52.74% of total office
- Class C: 309,785 SF / 5.46% of total office
Industrial
Total: 13,526,837 SF
By square footage range:
- 50k to 100k SF: 3,422,003 SF / 25.3% of total industrial
- 100k to 500k SF: 5,551,713 SF / 41.04% of total industrial
- 500k to 1M SF: 1,738,803 SF / 12.85% of total industrial
- > 1M SF: 2,814,318 SF / 20.81% of total industrial
Office Spaces with Retail
Total: 8,948,553 SF
By square footage range:
- 50k to 100k SF: 2,053,920 SF / 22.95% of total office with retail
- 100k to 500k SF: 5,719,686 SF / 63.92% of total office with retail
- > 1M SF: 1,174,947 SF / 13.13% of total office with retail
Employment in Bakersfield, CA
Job growth in Bakersfield has increased by nearly 6% this past year, with a current labor force in the city of over 164,000. Over 34% of the workforce is employed in the areas of administration, construction & extraction, production, transportation, and material moving.
Top private employers in Bakersfield include Adventist Health Bakersfield, Bakersfield Memorial Hospital, C&J Energy Services, Chevron Corporation, Grimmway Farms, Kern Medical, Marko Zaninovich Inc., Mercy Hospital Bakersfield, Nabors Completion Production, and Nasa/Dryden Flight Research.
Education in Bakersfield, CA
Bakersfield City School District and the Kern High School District operate the public schools in the city. The High School District is the largest in California and is comprised of 28 schools educating over 35,000 students each year. Private schools in Bakersfield include Garces Memorial High School, Bakersfield Christian High School, and Bakersfield Adventist Academy.
Colleges and universities in Bakersfield include California State University - Bakersfield, Bakersfield Community College, National University, and branches of the University of LaVerne, Fresno Pacific University, and Point Loma Nazarene University.
Commuting Time in Bakersfield, CA
The average commuting time in Bakersfield is just under 22 minutes, one of the shortest commutes in the state of California. In addition, over 2% of the workforce has a super commute of 90 minutes or more, while nearly 11% of the work week commuters carpool, and over 3% have the ability to work from home.
The integrated transportation and distribution systems in Bakersfield are key to the success of business and industry in the region:
- Interstate 5 bypasses the city a few miles to the west, while State Routes 99, 58 and 178 provide access to Bakersfield.
- Bus service in Bakersfield is provided by Golden Empire Transit,
- Commuter rail service is provided by Amtrak through the Downtown Bakersfield Amtrak Station,
- Freight rail service in Bakersfield is provided by both Union Pacific and BNSF,
- Bakersfield's William Thomas Air Terminal provides direct flights to and from Los Angeles, San Francisco, Phoenix, Denver and Houston, while Inyokern Airport in eastern Kern County provides air service to Los Angeles.
Bakersfield Demographics
Population
- Total Population375,699
- Male Population(49.2 %) 184,798
- Female Population(50.8 %) 190,901
- Median Age30.70
Income/Financial
- Average Household Income$81,610
- Median Household Income$62,340
- Median Income Under 25$33,607
- Median Income 25-44$64,583
- Median Income 45-64$72,528
- Median Income Over 65$45,402