Redwood City, CA Economic Overview
Redwood City is a San Francisco South Bay Area community located in the heart of Silicon Valley in San Mateo County, approximately 27 miles south of San Francisco and 24 miles northwest of San Jose. Redwood City is the third-largest city within the County of San Mateo, with a population of over 85,000 and total land mass of 19.4 square miles. The City stretches from San Francisco Bay towards the Santa Cruz Mountains and is crossed by Highway 101. As with most of the Bay Area, Redwood City enjoys a mild Mediterranean climate with warm, dry summer and cool, wet winters. The City slogan, inscribed on arches across Broadway at the east and west entrances to downtown, “Climate Best by Government Test,” is based on a climate survey conducted by the U.S. and German governments prior to World War I. The City tied for the world’s best climate with the Canary Islands and North Africa’s Mediterranean Coast and is now known for its year-round moderate climate. The “best climate” is just one of many features that give the 82,880 residents and 8,340 businesses served by Redwood City commercial real estate an enjoyable, satisfactory, and strategic environment to work, play, and thrive.
At the heart of Silicon Valley, Redwood City is set in a technology-rich region with a vibrant downtown center, quickly evolving into the entertainment hub of San Francisco Peninsula, offering residents visitors, and businesses a unique retail, entertainment, and restaurant experience. Its proximity to San Francisco and Silicon Valley give business establishments plenty of opportunities to access vital resources and affluent communities within the world’s largest technology center. Redwood City also has the only deep-water port in the South Bay that allows for both cargo, passenger service and private vessels to access the Bay waters. Home to world-class firms such as Box, Oracle, Evernote, Wealthfront, Silver Spring Networks, Genomic Health, Kaiser Permanente, Stanford University Health, and Electronic Arts, Redwood City is known for being business-friendly and assisting in the growth and development of its firms. The City’s largest employers include Oracle Corporation, County of San Mateo, Electronic Arts, Sequoia Hospital, and Box Inc. The City also boasts a high median household income of $85,000.
Redwood City, CA Commercial Real Estate Market
In 2011, Redwood City Council adopted the Downtown Precise Plan in an effort to establish new development standards for new developments within the Downtown area. The plan has seen the opening of Crossing 900, one of the first major office developments in the downtown area. The two buildings brought 306,000 square feet of new office space, along with three additional buildings providing another 250,000 square feet of new leasable space downtown. Businesses looking to rent office space in Redwood City should first plan on whether they need to be located downtown. The downtown area gets the most traffic, which is pivotal for offices that need a convenient location for their clients. However, it is also the most expensive place to rent in Redwood City. The prices outside of downtown are drastically cheaper, particularly along Industrial Road and Veterans Boulevard.
The Redwood City commercial real estate market encompasses 6.7 million square feet of office space, much more than neighboring Menlo Park at 2.8 million square feet, and continues to exhibit signs of high demand with a vacancy rate stable at 6.5%.
Downtown Redwood City is home to over 100 retail stores, restaurants, and entertainment options. The Downtown Redwood City commercial real estate market offers a selection of modern office buildings set in an ideal location on the San Francisco Peninsula, just 15 minutes from San Francisco International Airport.
Redwood City, CA Office Rental Rates ($/SF/year)
Data provided by Yardi Matrix, for properties larger than 50K SF.
Redwood City, CA Office Sales
Data provided by Yardi Matrix, for properties larger than 50K SF, which sold at over $5M.
Redwood City, CA Commercial Inventory Breakdown
Office Spaces
Total: 15,243,870 SF
By square footage range:
- 50k to 100k SF: 3,660,217 SF / 24.01% of total office
- 100k to 500k SF: 9,131,467 SF / 59.9% of total office
- 500k to 1M SF: 887,186 SF / 5.82% of total office
- > 1M SF: 1,565,000 SF / 10.27% of total office
By class:
- Class A: 8,112,917 SF / 53.22% of total office
- Class B: 3,373,627 SF / 22.13% of total office
- Class C: 153,463 SF / 1.01% of total office
Industrial
Total: 638,894 SF
By square footage range:
- 50k to 100k SF: 90,880 SF / 14.22% of total industrial
- 100k to 500k SF: 548,014 SF / 85.78% of total industrial
By class:
- Class B: 638,894 SF / 100% of total industrial
Office Spaces with Retail
Total: 896,818 SF
By square footage range:
- 50k to 100k SF: 79,683 SF / 8.89% of total office with retail
- 100k to 500k SF: 817,135 SF / 91.11% of total office with retail
Employment in Redwood City, CA
The San Mateo County unemployment rate is among the lowest in the region at 2.9%, compared to the Bay Area’s unemployment rate of 3.1% and the State rate at 4.5%. The most common job groups in the City include Professional, Scientific, and Tech Services, with Healthcare and Social Assistance close behind. The occupations with the fastest projected job growth in the County include Biomedical Engineers, Statisticians, and Chemical Engineers.
According to the Bureau of Labor Statistics, the industries in the San Francisco-San Mateo-Redwood City, CA area with the highest employment numbers include:
- Professional and Business Services—currently employs 271,200, growing at 0.5%/year
- Trade, Transportation, and Utilities—currently employs 158,200, growing at 3.6%/year
- Leisure and Hospitality—currently employs 148,400, growing at 5.5%/year
Education in Redwood City, CA
Redwood City residents are served by the Redwood City School District, administering the elementary and middle schools, and the Sequoia Union High School District, administering the high schools. The City also offers adult education through its San Mateo Adult and Community Education program and the Sequoia District Adult School.
Redwood City offers higher education through its state community college, Cañada College. Other options nearby include Menlo College, Notre Dame de Namur University, and College of San Mateo, all located within six miles from Redwood City Center. Stanford University is located just seven miles from the City and enrolls as many as 17,000 students each year.
Commuting Time in Redwood City, CA
Located nearby major transportation hubs like San Francisco and San Jose, Redwood City is accessible via numerous transport options, including:
- Commute by car from both major cities, San Francisco and San Jose, via Highway 101 should take about 30 minutes
- SamTrans provides local bus service throughout Redwood City as well as the entire county of San Mateo.
- Caltrain provides commuter rail service on the San Francisco Peninsula between San Francisco and San Jose. Light rail is also accessible via Bay Area Rapid Transit and VTA Light Rail.
- By air, Redwood City is located nearby San Mateo County Airport, San Francisco International Airport (SFO), and Mineta San Jose International Airport (SJC)
Employees in Redwood City have a shorter average commute time of 22.9 minutes than the national average of 24.8 minutes. The largest share of workers drives alone, followed by those who carpool and work at home.
Redwood City Demographics
Population
- Total Population85,217
- Male Population(50.2 %) 42,750
- Female Population(49.8 %) 42,467
- Median Age36.60
Income/Financial
- Average Household Income$147,533
- Median Household Income$107,469
- Median Income Under 25$96,250
- Median Income 25-44$127,304
- Median Income 45-64$113,769
- Median Income Over 65$66,686
News
TMG Partners announced it has signed a six-year lease with Oracle for 16,000 square feet at 1330 Broadway. The 18-story, 328,427-square-foot Downtown Oakland office building will accommodate the Redwood City-based tech corporation on the 17th floor. The Class A office building was originally con...