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: 42,671,135 SF
By square footage range:
- 50k to 100k SF: 9,321,674 SF / 21.85% of total office
- 100k to 500k SF: 24,164,221 SF / 56.63% of total office
- 500k to 1M SF: 5,896,479 SF / 13.82% of total office
- > 1M SF: 3,288,761 SF / 7.71% of total office
By class:
- Class A+: 2,045,641 SF / 4.79% of total office
- Class A: 16,285,485 SF / 38.17% of total office
- Class B: 21,453,423 SF / 50.28% 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 |
Tower 301 | 301 Capitol Mall, 95814 | 913,055 | n/a |
Capitol Square | 450 N Street, 95814 | 868,131 | 1991 |
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 |
---|---|---|---|
Ice Blocks - Block 1 | 1610 R Street, 95811 | 171,924 | 2018 |
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 |
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
- Bell Arden Demographics
- Belmont Demographics
- Bowling Green Demographics
- Bradshaw Woods Demographics
- Bradview Business Park Demographics
- Campus Demographics
- College - Glen Demographics
- College Town Demographics
- Downtown Sacramento Demographics
- East Sacramento Demographics
- Erikson Industrial Park Demographics
- Folsom Estates Demographics
- Gateway Center Demographics
- Lincoln Village Demographics
- Metro Center Demographics
- Midtown - Winn Park - Capital Demographics
- Natomas Corporate Center Demographics
- Pocket Demographics
- Point West Demographics
- Richmond Grove Demographics
- Rosemont Demographics
- RP - Sports Complex Demographics
- Sierra Oaks Demographics
- South Natomas Demographics
- Southern Pacific - Richards Demographics
- Southside Park Demographics
- Valley Hi - North Laguna Demographics
- Willowcreek Demographics
News
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...
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...
Cities near Sacramento, CA
- Carmichael Office Space
- Citrus Heights Office Space
- Davis Office Space
- Elk Grove Office Space
- Elk Grove City Office Space
- Fair Oaks Office Space
- Folsom Office Space
- Gold River Office Space
- Granite Bay Office Space
- Mather Office Space
- McClellan Office Space
- North Highlands Office Space
- Orangevale Office Space
- Rancho Cordova Office Space
- Rancho Cordova City Office Space
- Rocklin Office Space
- Roseville Office Space
- Sloughhouse Office Space
- West Sacramento Office Space
- Woodland Office Space
- + More - Less
Sacramento, CA zip codes
- 95811 Office Space
- 95814 Office Space
- 95815 Office Space
- 95816 Office Space
- 95817 Office Space
- 95818 Office Space
- 95819 Office Space
- 95820 Office Space
- 95821 Office Space
- 95822 Office Space
- 95823 Office Space
- 95825 Office Space
- 95826 Office Space
- 95827 Office Space
- 95828 Office Space
- 95830 Office Space
- 95831 Office Space
- 95833 Office Space
- 95834 Office Space
- 95838 Office Space
- 95841 Office Space
- 95864 Office Space
- + More - Less
Neighborhoods
- Bell Arden Office Space
- Belmont Office Space
- Bowling Green Office Space
- Bradshaw Woods Office Space
- Bradview Business Park Office Space
- Campus Office Space
- College - Glen Office Space
- College Town Office Space
- Curtis Park Office Space
- Downtown Sacramento Office Space
- East Sacramento Office Space
- Erikson Industrial Park Office Space
- Folsom Estates Office Space
- Gateway Center Office Space
- Granite Regional Park Office Space
- Lincoln Village Office Space
- Metro Center Office Space
- Midtown - Winn Park - Capital Office Space
- Natomas Corporate Center Office Space
- Pocket Office Space
- Point West Office Space
- Richmond Grove Office Space
- Rosemont Office Space
- RP - Sports Complex Office Space
- Sierra Oaks Office Space
- South Natomas Office Space
- Southern Pacific - Richards Office Space
- Southside Park Office Space
- Valley Hi - North Laguna Office Space
- Willowcreek Office Space
- + More - Less
Cities near Sacramento, CA
- Carmichael Commercial Real Estate
- Citrus Heights Commercial Real Estate
- Davis Commercial Real Estate
- Elk Grove Commercial Real Estate
- Elk Grove City Commercial Real Estate
- Fair Oaks Commercial Real Estate
- Folsom Commercial Real Estate
- Gold River Commercial Real Estate
- Granite Bay Commercial Real Estate
- Mather Commercial Real Estate
- McClellan Commercial Real Estate
- North Highlands Commercial Real Estate
- Orangevale Commercial Real Estate
- Rancho Cordova Commercial Real Estate
- Rancho Cordova City Commercial Real Estate
- Rocklin Commercial Real Estate
- Roseville Commercial Real Estate
- Sloughhouse Commercial Real Estate
- West Sacramento Commercial Real Estate
- Woodland Commercial Real Estate
- + More - Less