Richmond, CA Economic Overview
Home to over 107,000 residents, Richmond is in the western part of Contra Costa County and lies on the eastern shore of San Francisco Bay, providing easy access to the affluent Marin County, Oakland and San Francisco. Richmond's commercial real estate market is driven by the diverse mix of businesses that are attracted by the city's ready workforce, availability of industrial space to expand and locate, and the business-friendly government.
The economy in Richmond is propelled by several major industry and business sectors, including petrochemical, education, healthcare, medical equipment manufacturing, light industrial, retail and government. Residential redevelopment activity in Richmond also contributes significantly to the economy, with projects such as the multi-family Marina Bay, Bay Walk, Country Club Vista and Seacliff.
With a median household income of just over $55,000, industry is attracted to Richmond as an affordable place to do business in the San Francisco Bay Area. Both income and job growth in Richmond are expected to remain strong, thanks to the city's proactive assistance to business owners seeking to relocate existing operations, entrepreneurial start-ups, and help with business-to-business transactions.
Richmond, CA Commercial Real Estate Market
As part of the Oakland market, the ongoing growth of the Richmond office market is driven by the city's proximity to the many corporations that call the area home, its centralized and integrated transportation options, and the pro-growth, business friendly municipality. Richmond actively seeks out both established and new business, providing low-cost loans for working capital, tax incentives, relocation assistance and supportive contracting opportunities.
The Richmond Enterprise Zone can offer significant savings to businesses of all sizes, through the strategic use of hiring credits, sales & use tax credits, manufacturer's investment tax credits, business expense deductions, net operating carryovers and net interest deductions.
The Port of Richmond is a major factor in the industrial, warehouse and flex commercial real estate market in Richmond. The Port handles 19 million short tons annually, making it the third-largest shipping port in California and #1 in the State for shipments of vehicles and bulk liquids. The Port has 18 terminals, five dry docks, and is served by four major rail companies.
Some of the varied businesses that are part of the commercial market in Richmond include Amazon, Blue Apron, Hello Fresh, Mountain Hardware, Restoration Hardware, Sun Power, UPS, Whole Foods, and Williams Sonoma.
With over 37 million square feet of office space and 192 million square feet of industrial space in the greater Oakland market, Richmond has been able to successfully attract both national and international tenants and development to the city. Recent commercial expansion and development activity in Richmond includes:
- Amazon's 224,000-square-foot expansion of industrial warehouse space;
- HelloFresh's nearly 110,000 square feet of freezer-storage warehouse;
- Bay Walk, a 10-acre development of 100 houses, 98-live-work units, and a business incubation center with co-working units available to non-residents.
Richmond, CA Office Sales Volume
Data provided by Yardi Matrix, for properties larger than 50K SF, which sold at over $5M.
Richmond, CA Office Transactions
Data provided by Yardi Matrix, for properties larger than 50K SF, which sold at over $5M.
Richmond, CA Commercial Inventory Breakdown
Office Spaces
Total: 1,271,512 SF
By square footage range:
- 50k to 100k SF: 310,366 SF / 24.41% of total office
- 100k to 500k SF: 961,146 SF / 75.59% of total office
By class:
- Class B: 1,271,512 SF / 100% of total office
Industrial
Total: 3,699,974 SF
By square footage range:
- 100k to 500k SF: 3,699,974 SF / 100% of total industrial
By class:
- Class A: 550,120 SF / 14.87% of total industrial
- Class B: 3,026,554 SF / 81.8% of total industrial
Employment in Richmond, CA
Job growth in Richmond has increased by over 2%, with nearly 50,000 employees having jobs in the city. Over 60% of the labor force works in the areas of educational & health services, accommodation & food services, construction, manufacturing, and professional & management.
The top 10 employers in Richmond are:
- Chevron Refinery with nearly 3,500 workers;
- WCCUSD with nearly 1,700 employees;
- Social Security Administration with nearly 1,300 employees;
- Blueapron, Inc. with 1,200 workers;
- U.S. Postal Service with over 1,000 people;
- Contra Costa County with over 800 employees;
- City of Richmond with over 800 people;
- The Permanente Medical Group with over 700 employees;
- Kaiser Foundation Hospitals with over 500 employees;
- Costco Wholesale with over 400 workers.
As part of the greater Oakland market, Richmond also benefits from businesses such as Kaiser Permanente, Clorox, Cost Plus World Markets, Pandora Radio, and Sungevity that are all located in the greater metropolitan area.
Education in Richmond, CA
The West Contra Costa Unified School District operates the 16 elementary schools, seven elementary-middle schools, three middle schools, and four high schools in Richmond. There are also several private schools and three charter schools.
The Contra Costa Community College District serves Richmond, with community college students commuting to Contra Costa College in the nearby city of San Pablo. Students in Richmond seeking a university education have numerous institutions in Oakland to choose from, including Holy Names University, Lincoln University, Mills College, Patten University, Merritt College, and Saybrook University.
Commuting Time in Richmond, CA
As residents of the East Bay, commuters in Richmond have to face some of the worst traffic congestion each work day, with the average commute time running nearly 30 minutes. Even worse, nearly 4% of the Richmond commuters have a super commute of 90 minutes or more each day.
While over half of the work day commuters in Richmond drive alone, over 18% choose to carpool and 14% use public mass transit.
- Interstate 80, Interstate 580, the Richmond Parkway, and State Route 123 provide access to Oakland, San Francisco and the East Bay.;
- Amtrak provides service from Richmond with two lines.;
- BART - Bay Area Rapid Transit - has a station in Richmond that provides service to the East Bay.;
- Commuter ferry service is provided weekdays from Richmond to the San Francisco Ferry Building, and to Fisherman's Wharf in San Francisco on the weekends.;
- Union Pacific, BNSF Railway, and Richmond Pacific Railroad all provide commercial and cargo rail service in Richmond.;
- Richmond is served by both the San Francisco and Oakland International Airports.
Richmond Demographics
Population
- Total Population108,853
- Male Population(48.1 %) 52,401
- Female Population(51.9 %) 56,452
- Median Age35.70
Income/Financial
- Average Household Income$78,739
- Median Household Income$61,045
- Median Income Under 25$30,712
- Median Income 25-44$60,177
- Median Income 45-64$67,524
- Median Income Over 65$52,606
Residential Rents in Richmond, CA
Slightly more than 50% of the residents in Richmond are renters, a percentage that has been slowly increasing over the years. Thanks to the varied mixed-use developments in the city, residential rental rates in Richmond have actually decreased over the last year and continue to remain relatively affordable compared to other parts of the San Francisco and Oakland metropolitan areas.
A one-bedroom rental in Richmond goes for $1,826/month on average, while two-bedroom units rent for $2,373 monthly.
Richmond, CA Average Rental Price, September 2019
- $ 2,427/mo
- Studio: $ 1,500
- 1 Bedroom: $ 1,694
- 2 Bedrooms: $ 2,794
Richmond, CA Rent Trends
News
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