Sacramento, CA Office Space for Lease or Rent

Sacramento, CA - Office Market Overview

The Sacramento Metropolitan Area includes the Campus Commons, Gateway Center, and Midtown Sacramento office space submarkets. With a metropolitan population of nearly 2.3 million, Sacramento is the state capital of California and the sixth-fastest growing city in the state. The technology, health care, and government sectors all provide consistently strong demand for white-collar office employment in Sacramento.

As of mid-2017, the Greater Sacramento office market encompasses over 37 million square feet of existing office space in properties larger than 50,000 square feet. The city's centralized Northern California location and government nexus attracts companies in the technology & energy, advanced manufacturing, and business & financial services, that generate robust demand for office space in the Sacramento commercial real estate market.

Sacramento, CA - Office Inventory Description

Both public and private industries are attracted to Sacramento's strategic location, skilled workforce, and affordable cost of doing business. With a gross metropolitan product of over $128 billion annually, the demand for white-collar office space in Sacramento remains strong. Nearly 64% of the office space in Sacramento is Class A or A+, while Class B office space adds another 55% of inventory to the market.

The Downtown Sacramento office market is one of the fastest-growing office submarkets in the city. Situated along I-5 and the Sacramento River, the area is home to prime Class A office property such as the U.S. Bank Tower, 1201 K Street, and the Wells Fargo Center at 400 Capitol Mall.

Sacramento, CA Commercial Inventory Breakdown

Office Spaces

Total: 42,645,603 SF

Data provided by Yardi Matrix, properties over 50k SF, includes office with retail

By square footage range:

50k to 100k SF: 9,194,142 SF / 21.56% of total office
100k to 500k SF: 24,266,221 SF / 56.9% of total office
500k to 1M SF: 5,896,479 SF / 13.83% of total office
> 1M SF: 3,288,761 SF / 7.71% of total office

By class:

Class A+: 2,045,641 SF / 4.8% of total office
Class A: 15,773,685 SF / 36.99% of total office
Class B: 21,325,891 SF / 50.01% of total office
Class C: 1,241,186 SF / 2.91% of total office

Top 10 Largest Office Buildings

in Sacramento

Office building	Address	Sqft	Year built
Franchise Tax Board Office Complex	9645 Butterfield Way, 95827	1,814,056	1984
Capitol Area East End Complex	1501 Capitol Avenue, 95814	1,474,705	2003
CalEPA Headquarters	1001 I Street, 95814	950,000	2001
Capitol Square	450 N Street, 95814	868,131	1991
301 Capitol Mall	301 Capitol Mall, 95814	737,000	n/a
Resources Building	1416 9th Street, 95814	656,625	1964
744 P Street	744 P Street, 95814	620,000	1969
Lincoln Plaza East & West	400 Q Street, 95811	538,162	2005
DMV Headquarters	2415 1st Avenue, 95818	518,364	1960
722 & 800 Capitol Mall	722 Capitol Mall, 95814	505,832	1957

Most Recently-Built Office Buildings

in Sacramento

Office building	Address	Sqft	Year built
700 North 10th Street	700 North 10th Street, 95811	162,353	2011
Sutter Medical Plaza Sacramento	1625 Stockton Blvd, 95816	143,210	2011
2020 Gateway	2020 West El Camino Avenue, 95833	319,325	2010
Sutter Capitol Pavilion	2725 Capitol Avenue, 95816	209,000	2010
Mercy Midtown Medical Center	3000 Q Street, 95816	122,000	2010
1747 North Market Blvd	1747 North Market Blvd, 95834	105,000	2010
Bank of the West Tower	500 Capitol Mall, 95814	445,984	2009
Sacramento Area Sewer District	10060 Goethe Road, 95827	170,000	2009
Gateway Corporate Center - 160 Promenade Circle	160 Promenade Circle, 95834	116,918	2009
Kaiser Permanente South Sacramento Outpatient Surgery Services	6600 Bruceville Road, 95823	55,285	2009

Sacramento, CA - Green Office Space

Of the Top 30 Green Office Markets in the U.S., Sacramento ranks #22 for energy-efficient office buildings. While over 3% of the office buildings larger than 50,000 square feet are LEED-certified, just over 9% rank as Energy Star-rated and nearly 11% are recognized as green buildings.

The Lincoln Plaza East & West office buildings in Downtown Sacramento are brilliant examples of green offices. Built in 2005, this over 538,000-square-foot project has received the prestigious LEED Platinum certification. As tenants, national and global investors seek out green certified office assets for their use and portfolios, the green office trend will continue to grow in Sacramento.

The National Green Building Adoption Index for 2017 surveyed the top 30 major U.S. markets, looking at the percentage of energy efficient buildings. Sacramento has placed 22nd on this survey, which includes EPA Energy Star-rated properties. Since 2005 the percentage of green certified buildings has increased from 5% to 38% mid-2017.

Sacramento, CA's Top Office-Using Sectors

Sacramento's centralized location, attractive business climate, and diverse mix of business and industry all continue to create demand for commercial real estate in Sacramento. The health care, government, and educational sectors are some of the primary job creators of white-collar employment and users of Class A office space.

Health Care – Companies such as Sutter Health, the UC Davis Health System, Kaiser Permanente, and Dignity Health all create demand for Class A office space in Sacramento.
Government – Demand for office space in the metro area is created by government institutions such as the State of California, Sacramento County, the City of Sacramento, and the three unified school districts in the area.
Higher Education – Sacramento is home to California State University, with the University of California - Davis, and the UC Davis Medical Center nearby.
Corporate Offices – The demand for white-collar Class A office space in Sacramento is also driven by companies such as Blue Diamond Growers, Aerojet, Teichert, and the McClatchy Company.

Sacramento Demographics

Population

Total Population480,566
Male Population(48.5 %) 233,137
Female Population(51.5 %) 247,429
Median Age34.00

Income/Financial

Average Household Income$68,286
Median Household Income$50,739
Median Income Under 25$23,495
Median Income 25-44$53,648
Median Income 45-64$58,866
Median Income Over 65$40,966

News

The 10 Tallest Office Buildings in Sacramento

November 09, 2018

The city’s status as a strong West Coast financial center and popular tourist destination drives investor interest for Sacramento office space, and its downtown is getting ever more crowded with office towers. Check out the 10 tallest office buildings currently found on the Sacramento skyl...

Winners and Losers in the Labor Market – US States and Metros with the Highest Income Inequality

August 21, 2018

  Ever since Gordon Gekko uttered his now infamous credo, “greed is good,” many economists have been concerned with the long-term effects of the growing income inequality in the U.S. While free-market enthusiasts see things differently, inequality has become a recurring topic within our new...

California Q2 2018 Office Sales: San Francisco Sales Finally Bounce Back

July 17, 2018

Executive summary: Q2 overview: 85% of Q2 dollar volume amassed in L.A., San Francisco, Bay Area sales; Top Q2 deals: Blackstone unloads $1B worth of L.A. and Bay Area office assets; Los Angeles rising office sales stopped short of the $2B mark; Investment in Bay Area office assets dropped 37% y...

Office Space for Rent in Sacramento, CA - 392 Listings