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.
Top 10 Largest Office Buildings
in Sacramento
| Office building | Address | Sqft | Year built |
|---|---|---|---|
| Franchise Tax Board Office Complex | , 95827 | 1,814,056 | 1984 |
| Capitol Area East End Complex | , 95814 | 1,474,705 | 2003 |
| CalEPA Headquarters | , 95814 | 950,000 | 2001 |
| Tower 301 | , 95814 | 913,055 | n/a |
| Capitol Square | , 95814 | 868,131 | 1991 |
| Resources Building | , 95814 | 656,625 | 1964 |
| 744 P Street | , 95814 | 620,000 | 1969 |
| Lincoln Plaza East & West | , 95811 | 538,162 | 2005 |
| DMV Headquarters | , 95818 | 518,364 | 1960 |
| 722 & 800 Capitol Mall | , 95814 | 505,832 | 1957 |
Most Recently-Built Office Buildings
in Sacramento
| Office building | Address | Sqft | Year built |
|---|---|---|---|
| Office at The Ice Blocks | , 95811 | 171,924 | 2018 |
| 700 North 10th Street | , 95811 | 162,353 | 2011 |
| Sutter Medical Plaza Sacramento | , 95816 | 143,210 | 2011 |
| 2020 Gateway | , 95833 | 319,325 | 2010 |
| Sutter Capitol Pavilion | , 95816 | 209,000 | 2010 |
| Mercy Midtown Medical Center | , 95816 | 122,000 | 2010 |
| 1747 North Market Blvd | , 95834 | 105,000 | 2010 |
| Bank of the West Tower | , 95814 | 445,984 | 2009 |
| Sacramento Area Sewer District | , 95827 | 170,000 | 2009 |
| Gateway Corporate Center - 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 Population489,650
- Male Population(48.8 %) 238,935
- Female Population(51.2 %) 250,715
- Median Age34.30
Income/Financial
- Average Household Income$74,469
- Median Household Income$54,615
- Median Income Under 25$24,138
- Median Income 25-44$57,418
- Median Income 45-64$62,390
- Median Income Over 65$44,902
- 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
2018 California Office Sales Report—LA, SF on Cooldown, Stability in the Bay Area and Orange County Markets
March 18, 2019
More than 55MSF changed hands across California office markets in 2018, totaling over $20B in sales. Cooler trends prevailed, as sales slowed and markets saw more stability throughout the year. Development was driven by the tech sector and construction is decidedly getting greener.
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...