Petaluma, CA - Office Market Overview
Petaluma neighbors the Santa Rosa, Novato, and San Rafael commercial real estate markets. With a population of just over 60,000 residents, the office market in Petaluma sees consistent demand, due to the city's mid-point location between the larger cities of Santa Rosa to the north and San Rafael to the south.
As of mid-2017, the Petaluma office market encompasses nearly 1.6 million square feet of existing office space in properties larger than 50,000 square feet. The commercial real estate market in Petaluma, CA, attracts a variety of business and industry, including high-end sporting goods manufacturing and larger corporate office users.
Petaluma, CA - Office Inventory Description
Petaluma is located in the San Francisco North Bay Area market, just 37 miles north of the City of San Francisco. U.S. Highway 101 bisects the city, and the Sonoma-Marin Area Rail Transit provides service from the Petaluma downtown station. With such easy access, the office market in the city has something to offer to almost every business in the region. Class B office space adds over 1.5 million square feet of office inventory in Petaluma, while Class A or A+ office space in Petaluma brings just over 55,000 square feet more to the market.
Some of the larger office buildings in Petaluma include the Redwood Business Park - 1465 North McDowell Blvd, the Southpoint Business Park - 1304 Southpoint Blvd, and the Petaluma Marina Business Center at 755 Baywood Drive.
Petaluma, CA Commercial Inventory Breakdown
Total: 1,867,761 SF
By square footage range:
- 50k to 100k SF: 1,097,919 SF / 58.78% of total office
- 100k to 500k SF: 769,842 SF / 41.22% of total office
- Class A: 55,597 SF / 2.98% of total office
- Class B: 1,812,164 SF / 97.02% of total office
Petaluma, CA - Green Office Space
The State of California takes development of energy-efficient green office space very seriously. That's to be expected, given that California is home to six of the top 30 largest green office markets in the U.S., according to the 2017 National Green Building Adoption Index. This report notes that over the past 12 years the overall percentage of EPA Energy Star-rated, and LEED-certified office buildings across these top markets has increased by about 33%. California recently enacted legislation requiring owners of larger commercial buildings to measure the change in energy consumption annually and to make those results available to the public.
A good example of a LEED-certified building in Petaluma is the Wells Fargo bank building at 125 Western Avenue. This property holds high LEED scorecard certifications for energy and atmosphere, indoor environmental quality, and innovative design.
Petaluma, CA's Top Office-Using Sectors
The Petaluma commercial real estate and office markets benefit significantly from demand that comes from top office-using sectors like agriculture, light manufacturing, government & education, along with larger corporate office users.
- Agriculture – Demand for commercial real estate in Petaluma comes from companies such as Petaluma Poultry Producers and Clover Stornetta Farms, who are also two of the largest employers in the city.
- Light Manufacturing – High-end manufacturers such as Calix and Camelbak contribute to the demand for office space in Petaluma.
- Government & Education – Office employment in Petaluma is created by organizations such as the Petaluma City School District, the City of Petaluma, and the Santa Rosa Junior College.
- Corporate Offices – Firms headquartered in Petaluma include Amy's Kitchen, Lagunitas Brewing Company, Athleta Inc., and Enphase Energy, Inc.
- Total Population72,996
- Male Population(48.9 %) 35,716
- Female Population(51.1 %) 37,280
- Median Age42.00
- Average Household Income$109,295
- Median Household Income$84,786
- Median Income Under 25$58,218
- Median Income 25-44$93,320
- Median Income 45-64$101,116
- Median Income Over 65$57,764