Bakersfield, CA - Office Market Overview
The Bakersfield real estate market includes the Campus Park, CSU Bakersfield, and Kern City commercial real estate submarkets. With a population of over 885,000 residents, the economy of Bakersfield is largely driven by the agriculture and energy industries. Combined with healthcare and government use, the office market in Bakersfield remains robust year in and year out.
As of mid-2017, the Greater Bakersfield office market encompasses just over 3.8 million square feet of existing office space in properties larger than 50,000 square feet. As the ninth-most populous city in California, the commercial real estate market in Bakersfield sees demand from the large variety of business and industries that are attracted to the city's midpoint location between Fresno and Los Angeles.
Bakersfield, CA - Office Inventory Description
As a hub for the agricultural and oil business sectors in Kern County, Bakersfield generates a gross metropolitan product of over $42 billion each year. Demand for office space in Bakersfield is strong, with a good mixture of Class A, B and C office space to accommodate the needs of all business budgets. Class A and A+ office space in Bakersfield includes almost 1.4 million square feet of space, with Class B office product accounting for nearly 2.2 million square feet of the office inventory in Bakersfield.
The Bakersfield Downtown office market sees some of the most consistent demand for office space in the city. Located east of Chester Avenue between 21st Street and Truxtun Avenue, this area is home to investment-grade office property such as the Haberfelde Building, the 1415 18th Street office building, and The Truxton Tower.
Bakersfield, CA Commercial Inventory Breakdown
Total: 5,298,277 SF
By square footage range:
- 50k to 100k SF: 2,854,705 SF / 53.88% of total office
- 100k to 500k SF: 1,887,572 SF / 35.63% of total office
- 500k to 1M SF: 556,000 SF / 10.49% of total office
- Class A: 1,605,839 SF / 30.31% of total office
- Class B: 2,991,525 SF / 56.46% of total office
- Class C: 239,577 SF / 4.52% of total office
Bakersfield, CA - Green Office Space
According to the most recent National Green Building Adoption Index conducted in 2017, California is home to six of the top 30 largest green office markets in the U.S. The report surveyed the growth of green office space adoption. Back in 2005, the percentage of green, LEED, or Energy Star-certified space across these top markets averaged less than 5%. Fast forward 12 years, and today that percentage comes in at 38%, a nearly seven-fold increase in just a dozen years.
Bakersfield is home to some very impressive green office buildings. One such example is the LEED Gold certified PCL office building on 1500 S. Union Avenue. The property's LEED scorecard includes top rankings for water efficiency, indoor environmental quality, and innovation.
Bakersfield, CA's Top Office-Using SectorsBakersfield, CA's Top Office-Using Sectors
The Bakersfield commercial real estate and office markets are driven by users looking for a variety of office space, including the top-office using sectors in Bakersfield of the agricultural, healthcare, and energy industries, along with the large corporate and government users of office space.
- Agriculture – Grimmway Farms, Bolthouse Farms, and Paramount Farms are three of the largest employers in the city and help to drive the demand for commercial real estate in Bakersfield.
- Healthcare – Demand for white collar office space in Bakersfield comes from institutions such as Kaiser Permanente, San Joaquin Community Hospital, and the Kern Medical Center.
- Energy – Aera Energy and Chevron are two of the larger companies in this top business sector of Bakersfield, CA.
- Government & Corporate Offices – White collar office employment in Bakersfield CA is created from large organizations in Bakersfield such as California State University - Bakersfield, State Farm Insurance, and the County of Kern.
- Total Population372,680
- Male Population(49.0 %) 182,701
- Female Population(51.0 %) 189,979
- Median Age30.50
- Average Household Income$78,129
- Median Household Income$60,058
- Median Income Under 25$34,702
- Median Income 25-44$62,961
- Median Income 45-64$69,006
- Median Income Over 65$44,284