Santa Clara, CA - Office Market Overview
Santa Clara neighbors the commercial real estate markets of Alviso, Campbell, and Los Gatos. While the City of Santa Clara has a population of about 126,000, it is also part of the greater San Jose region, which is home to nearly 2 million people, creating a consistent demand for white-collar office employment in the region.
As of mid-2017, the Santa Clara office market encompasses nearly 20 million square feet of existing office space in properties larger than 50,000 square feet. Located in the center of Silicon Valley, the commercial real estate market in Santa Clara, CA, is driven in large part by the almost countless number of high technology firms that call the city home.
Santa Clara, CA - Office Inventory Description
Located just 45 miles from San Francisco, and adjacent to the cities of San Jose, Cupertino, and Sunnyvale, the economy of Santa Clara is predictably strong, as is the demand for Class A office space in Santa Clara. Nearly 50% of the office inventory in Santa Clara is Class A or A+, while Class B office space accounts for another 50% of the office market.
The Santa Clara office market continues to attract Class A tenants seeking a relatively more affordable business climate than what is found in San Jose or San Francisco. A few examples of investment-grade office buildings in Santa Clara include the Santa Clara Towers - 3945, the Santa Clara Gateway - 2550 Great America Way, and the Techmart office building at 5201 Great America Parkway.
Santa Clara, Santa Clara County, CA Commercial Inventory Breakdown
Total: 38,253,499 SF
By square footage range:
- 50k to 100k SF: 3,705,287 SF / 9.69% of total office
- 100k to 500k SF: 20,826,687 SF / 54.44% of total office
- 500k to 1M SF: 5,249,525 SF / 13.72% of total office
- > 1M SF: 8,472,000 SF / 22.15% of total office
- Class A+: 750,000 SF / 1.96% of total office
- Class A: 11,754,449 SF / 30.73% of total office
- Class B: 13,370,502 SF / 34.95% of total office
- Class C: 251,636 SF / 0.66% of total office
Santa Clara, CA - Green Office Space
While neighboring San Jose ranks 18th among the top 30 office markets in the U.S. for the percentage of energy-efficient space, the amount of green office space in Santa Clara is also quite impressive. Of the office buildings in Santa Clara that are larger than 50,000 square feet, 17% are considered to be green buildings, bringing over 3.7 million square feet of LEED-certified, EPA Energy Star-rated, or green office space to the Santa Clara commercial real estate market.
A great example of a LEED-certified office building in Santa Clara is The Campus @ 3333 - Building A. Located on Scott Boulevard, this Class A office building was constructed in 2014 and contributes over 152,000 square feet of LEED Silver-certified green office space.
The importance of energy-efficient, green office space to both tenants and office building investors is growing. The most recent National Green Building Adoption Index, conducted in 2017, measured the growth of green office space in the top 30 office markets in the country, and discovered that, since 2005, the amount of energy-efficient office space has increased by an average of 33% across these top markets.
Santa Clara, CA's Top Office-Using Sectors
The Santa Clara commercial real estate and Class A office market sees significant demand from top office-using sectors like high technology, government, education, and large corporate headquarters.
- High Technology – Avaya, Inc., EMC Corporation, ON Semiconductor, and Lsa Global all create demand for white-collar office employment in Santa Clara.
- Government – Santa Clara City Hall is one of the area's top employers and larger users of office space in Santa Clara.
- Education – Santa Clara University and the numerous businesses attracted to the institution help to drive demand for office space in Santa Clara, California.
- Corporate Headquarters – Demand for Class A white-collar office space comes from the numerous corporations headquartered in Santa Clara, including Intel, Applied Materials, Atheros, Extreme Networks, and Synaptics.
Santa Clara Demographics
- Total Population124,635
- Male Population(51.6 %) 64,271
- Female Population(48.4 %) 60,364
- Median Age33.90
- Average Household Income$129,755
- Median Household Income$108,609
- Median Income Under 25$57,540
- Median Income 25-44$129,336
- Median Income 45-64$114,362
- Median Income Over 65$46,836
Bay Area, San Francisco Q3 2018 Office Sales – Prices In Bay Area Climb Above $500 Mark
November 21, 2018
Executive Summary Top Deals: Office portfolios and joint venture investments show sustained market confidence Bay Area office prices soar past $500 per square foot in 39% Y-o-Y increase San Francisco office sales dip below $1 billion End-of-year pipeline dominated by Bay Area developers, major t...
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 news cyc...
Here Are 22 of the Best Coworking Spaces in Silicon Valley
August 02, 2018
The roots of the coworking movement can be traced back to Silicon Valley and the high-tech revolution that gave the region its name. Digital entrepreneurs have not only changed the way that technology is used in the workplace, but have also changed how people work. We’ve been looking at some of ...