Businesses can cut costs across the board by locating to Greater Sacramento thanks to the region’s competitive real estate, payroll, tax and utility rates. Employers can save even more by taking advantage of Greater Sacramento’s many incentives.
Commercial real estate rates
With some of the most competitive commercial real estate rates on the market, opportunities for business growth in Greater Sacramento abound.
Office lease rates per sq. ft.
Source: C&W Office, Industrial and Retail Marketbeat Q1, 2022
Industrial lease rates per sq. ft.
Source: C&W Office, Industrial and Retail Marketbeat Q1, 2022
Retail lease rates per sq. ft.
Source: C&W Office, Industrial and Retail Marketbeat Q1, 2022
Office vacancy rates
Source: C&W Office, Industrial and Retail Marketbeat Q1, 2022
Industrial vacancy rates
Source: C&W Office, Industrial and Retail Marketbeat Q1, 2022
Retail vacancy rates
Source: C&W Office, Industrial and Retail Marketbeat Q1, 2022
Payroll costs
Thanks to its competitive cost of living, Greater Sacramento offers employers potential payroll savings. Below is a sampling of annual payroll costs by industry based on operations with 500 employees. Employers can save $27-49 million in Greater Sacramento compared to other California markets.
Source: EMSI Occupation Characteristics 2019
Source: EMSI Occupation Characteristics 2019
Source: EMSI Occupation Characteristics 2019
Tax rates
While each state’s tax structure differs, California beats out the competition when comparing effective tax rates. Furthermore, for every dollar of business taxes collected in California, the state reinvests 37 cents towards spending that benefits business, more than Arizona, Nevada, Colorado, Washington and Texas.
Effective business tax rate
Source: EY 2020 Total State and Local taxes
Source: EY 2018 Total State and Local Taxes