Cupertino, CA Economic Overview
The City of Cupertino is located in Santa Clara County, at the southern end of the San Francisco Bay Peninsula and is prominently known for being home to the Apple Inc. corporate headquarters. The City spreads over 13 square miles and is bordered by San Jose, Saratoga, Sunnyvale, Santa Clara and Los Altos. Situated at the west end of Silicon Valley, Cupertino has earned the reputation of a balanced community, with a healthy climate for business and well- maintained residential neighborhoods, community parks, and public facilities. The excellent reputation of Cupertino's schools has been a major attraction for families wishing to settle in close proximity to jobs in Silicon Valley. National surveys rank the City high in education levels, median household incomes, and registered patent numbers, as well as among best cities in which to live. As one of the many cities that claim to be the “heart” of Silicon Valley, Cupertino commercial real estate is uniquely situated in the world’s largest high-tech hub, serving many semi-conductor and computer companies in their founding.
The City of Cupertino specializes in the business-to- business sector, with over 64% of sales tax revenues coming from suh companies. The worldwide headquarters for Apple Inc. is located here, in a modern complex circled by the Infinite Loop. Apple has announced that it plans to build a new 150-acre second campus between Interstate 280, N Wolfe Road, E Homestead Road and along Tantau Avenue, one mile east of the old campus. Cupertino is the corporate headquarters of other notable companies including CRC Health, DURECT, Mirapath, Seagate Technology, Bromium, and SugarCRM Inc., and home to many other well-known firms, such as Altia Systems, Cinarra, Panasonic Ventures, and Ducati North America. Other major employers include DeAnza College, one of the largest single-campus community colleges in the country, the Fremont Union High School District, and Cupertino Union School District. Cupertino’s highly professional labor force and demographic profile is reflected in its high median household income of over $142,000.
Cupertino, CA Commercial Real Estate Market
With the economic recovery and easing of credit, commercial development activity picked up considerably in recent years led by plan reviews of the new Apple Campus 2. Apple continues to grow and construction is nearing completion on its Apple Campus 2. Plans for the redevelopment of the Marina shopping center into a mixed-use project, Marina Plaza, was approved in 20 16. This project will include 23,000 square feet of retail and restaurant use, a 122-key boutique hotel, and 188 residential units including 16 units available below market rate. The City features 13 retail centers and over 180 dining establishments. The construction and completion of three new mixed-use projects, including Nineteen800 (formerly known as the Rosebowl), Main Street, and The Biltmore Adjacent Project, all have prominent retail and restaurant tenants.
Though Cupertino is home to the headquarters of many high-tech companies, very little manufacturing actually takes place in the city. The city's large office parks are primarily dedicated to management and design functions. As of the fourth quarter 2016, over 7.1 million square feet of office, research, and development space existed within the Cupertino office market with one of the lowest vacancy rates in Silicon Valley at 2.3% for office and 0.2% for industrial. Of this, over 4.4 million square feet is direct office space, with an additional 3.1 million square feet in construction, as of mid-2017.
Cupertino City Center offers an unparalleled location in Cupertino near the Corner of De Anza and Stevens Creek. The Cupertino City Center office market offers easy access to highways 280 and 85, fitness centers, swimming pool and showers, and EV charging stations.
Cupertino, CA Office Rental Rates ($/SF/year)
Data provided by Yardi Matrix, for properties larger than 50K SF.
Cupertino, CA Office Sales
Data provided by Yardi Matrix, for properties larger than 50K SF, which sold at over $5M.
Cupertino, CA Commercial Inventory Breakdown
Total: 10,230,083 SF
By square footage range:
- 50k to 100k SF: 1,068,120 SF / 10.44% of total office
- 100k to 500k SF: 6,281,463 SF / 61.4% of total office
- > 1M SF: 2,880,500 SF / 28.16% of total office
- Class A+: 2,880,500 SF / 28.16% of total office
- Class A: 2,891,232 SF / 28.26% of total office
- Class B: 2,208,351 SF / 21.59% of total office
Employment in Cupertino, CA
Quality schools and closeness to technology jobs make Cupertino a desirable address for a highly educated and culturally diverse population. More than 60 percent of residents aged 25 years or older hold a bachelor’s degree or higher. Employment in the City has been growing at a rate of 1.5% per year, to accommodate a total labor force of 26,184. The most common job groups include Computer and Mathematical (21.5%), Management (20.3%), and Architecture/Engineering (11.8%).
According to the Bureau of Labor Statistics, the industries in the San Jose-Sunnyvale- Santa Clara area with the highest employment numbers include:
- Professional and Business Services — currently employs 227,800, growing at 1.4% per year
- Education and Health Services — currently employs 166,900, growing at 2.8% per year
- Manufacturing — currently employs 166,300, growing at 1.1% per year
Education in Cupertino, CA
Cupertino is known for its high-achieving primary and secondary schools. Its Murdock-Portal Elementary and Faria Elementary School are tied for highest score for elementary public school in the state of California. As of 2013, John F. Kennedy Middle School is the best public middle school in the state, and Lawson Middle School is the third best in the state. Furthermore, Monta Vista High School is ranked number 23 out of all the public high schools in the nation. Primary (K-8) public schools are organized into the Cupertino Union School District, while the Fremont Union High School District is responsible for high school students.
Cupertino is home to De Anza College, one of the two community colleges in the Foothill–De Anza Community College District. The University of San Francisco has satellite campuses in Cupertino. There are an additional 61 colleges within 50 miles of Cupertino, including Santa Clara University and San Jose State University.
Commuting Time in Cupertino, CA
The city of Cupertino is highly accessible and served by an interconnected road system. Two freeways, State Route 85 and Interstate 280, intersect in Cupertino, with multi-lane boulevards with landscaped medians and traffic lights at all major intersections. Need-to- know information for commuters to and inside the city includes:
- Principal roads within the City are Stevens Creek Boulevard, Homestead Road, De Anza Boulevard and Wolfe Road.
- Bus service is also provided by the Santa Clara Valley Transportation Authority (VTA).
- Cupertino is also accessible via Amtrak, BART, and Caltrain.
- Cupertino has bike lanes on many of its boulevards. Bicycle traffic is heavy usually around morning and noon times around DeAnza College.
- Passenger and cargo air transportation is available at San Jose International Airport in San Jose, just 10 miles southeast of Cupertino. San Francisco International Airport is 30 miles north and Oakland International Airport is 40 miles north.
Employees in Cupertino face an average commute time equal to the national average of 24.8 minutes one way. The largest share of workers drives alone, followed by those who carpooled and use public transit.
- Total Population60,687
- Male Population(48.7 %) 29,535
- Female Population(51.3 %) 31,152
- Median Age41.10
- Average Household Income$181,767
- Median Household Income$153,449
- Median Income 25-44$171,052
- Median Income 45-64$184,991
- Median Income Over 65$66,274
Residential Rents in Cupertino, CA
The average rent for an apartment in Cupertino is $3,309 per month, a 3% year-over- year increase. The most affordable rental market in the vicinity of Cupertino is Alum Rock ($2,191 per month). The most expensive rentals near Cupertino are in Los Gatos ($2,772/month), Mountain View ($2,924/month) and Palo Alto ($3,002/month).
Cupertino, CA Average Rental Price, August 2019
- $ 3,178/mo
- Studio: $ 2,060
- 1 Bedroom: $ 2,706
- 2 Bedrooms: $ 3,355
Cupertino, CA Rent Trends
Bay Area, San Francisco Q3 2018 Office Sales – Prices In Bay Area Climb Above $500 Mark
November 21, 2018
Executive Summary Top Deals: Office portfolios and joint venture investments show sustained market confidence Bay Area office prices soar past $500 per square foot in 39% Y-o-Y increase San Francisco office sales dip below $1 billion End-of-year pipeline dominated by Bay Area developers, major t...
California Q1 2018 Office Sales: Smaller Markets Pick Up the Slack for LA, San Francisco
April 18, 2018
Executive Summary Q1 Overview: Sacramento posts highest growth in dollar volume, average prices Los Angeles on cooldown after hot Q4 2017 Bay Area office sales drop below $1B after 2-year streak Sacramento average prices reach 5-year high; sales spike 96% y-o-y Orange County prices inch above $3...
Suburban Construction Fuels 2018 US Office Pipeline
December 05, 2017
A couple of months ago, we conducted an analysis to see which were the top markets for office deliveries during the final leg of 2017. The fall-winter pipeline placed New York City at the top of the list, followed by the tech-driven San Francisco, Plano, Texas, and Cupertino, home to Apple’s n...
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