BUSINESS CLIMATE
Startup cost savings and resources
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Greater Sacramento |
Extend your runway in Greater Sacramento with up to 30% in startup cost savings while maintaining connection to Bay Area investors just 90 miles away.
Extend your runway: cost savings for startups
Annual business operation costs for R&D facility
30,000 SF of Class A suburban commercial space, $8M capital, 50 employees
| wdt_ID | Expense | Greater Sacramento | Seattle | Los Angeles | San Francisco |
|---|---|---|---|---|---|
| 1 | Employee payroll | $3,503,305 | $3,646,490 | $3,604,610 | $4,123,340 |
| 2 | Fringe and mandated benefits | $848,565 | $956,276 | $872,535 | $996,118 |
| 3 | Utilities | $275,250 | $168,347 | $368,410 | $484,037 |
| 4 | Building/lease payments | $515,055 | $490,293 | $502,899 | $580,788 |
| 5 | Property tax | $128,829 | $110,245 | $127,136 | $134,087 |
| 6 | Total operating cost | $5,271,003 | $5,371,650 | $5,475,589 | $6,318,370 |
| 7 | Local index | 100.00% | 101.90% | 103.90% | 119.90% |
Annual business operation costs for technology center
50,000 SF of Class A downtown space, $25M capital, 150 employees
| wdt_ID | Expense | Greater Sacramento | Los Angeles | Seattle | San Francisco |
|---|---|---|---|---|---|
| 1 | Employee payroll | $14,246,295 | $15,132,710 | $15,824,520 | $17,344,750 |
| 2 | Fringe and mandated benefits | $3,302,375 | $3,505,630 | $3,653,809 | $4,012,851 |
| 3 | Utilities | $275,250 | $368,410 | $168,347 | $484,037 |
| 4 | Building/lease payments | $1,302,000 | $1,940,500 | $2,094,500 | $3,636,000 |
| 5 | Property tax | $252,200 | $251,100 | $223,619 | $250,550 |
| 6 | Total operating cost | $19,378,120 | $21,198,350 | $21,964,795 | $25,728,188 |
| 7 | Local index | 100.00% | 109.40% | 113.30% | 132.80% |
Annual business operation costs for shared services center
100K SF of suburban office space, $10M capital, 500 employees
| wdt_ID | Expense | Greater Sacramento | Los Angeles | Seattle | San Francisco |
|---|---|---|---|---|---|
| 1 | Employee payroll | $41,120,705 | $42,839,640 | $43,870,925 | $49,595,140 |
| 2 | Fringe and mandated benefits | $9,547,978 | $9,942,129 | $10,173,942 | $11,491,166 |
| 3 | Utilities | $275,250 | $368,410 | $168,347 | $484,037 |
| 4 | Building/lease payments | $2,604,000 | $3,881,000 | $4,189,000 | $7,272,000 |
| 5 | Property tax | $100,880 | $100,440 | $89,448 | $100,220 |
| 6 | Total operating cost | $53,648,813 | $57,131,620 | $58,491,661 | $68,942,563 |
| 7 | Local index | 100.00% | 106.50% | 109.00% | 128.50% |
Detailed calculations and source of costs of doing business for labor, utilities and facilities are provided in the above tables, which include costs such as worker’s comp, unemployment insurance, health insurance, gas and electricity, annual real estate (lease or purchase) and taxes. Source: Metro Comp
Maintain connection to startup resources in the Bay Area
Just 88 miles apart, the Greater Sacramento and Bay Area economies are inextricably linked. This Megaregion is a focal point for global innovation with a highly educated shared workforce of 220,000+. Greater Sacramento is the #1 destination for Bay Area movers (Redfin Q4, 2021) and offers access to more than 734,000 two- and four-year students within 100 miles.
Tap into Greater Sacramento’s growing investment and startup ecosystem
As Greater Sacramento’s talent network strengthens and expands, innovation, venture capital investment, IPOs, SPACs and M&As in the region have risen. 2021 was a landmark year for investment in Greater Sacramento, with regional companies raising $3.62 billion in capital investments. These companies are drawing new income into the region, catalyzing high-wage job growth and driving innovation within the region’s industry clusters.
North America’s largest K-12 edtech IPO
Edtech provider PowerSchool went public in 2021. Its IPO was the largest in K-12 education software in North America and raised the company’s valuation to $4.3 billion.
Greater Sacramento’s growing innovation infrastructure supplies entrepreneurial resources, financing and collaboration for start-ups and businesses to grow and thrive. The region is home to multiple funds, accelerators, incubator spaces and additional groups and assets for startup resources.
Growth Factory: An accelerator for early-stage startups
Growth Factory is a regional accelerator for early-stage startups that offers access to funding and additional resources. The accelerator is growing rapidly in the community, with an expansion underway just a year after its launch.
Join Greater Sacramento’s unprecedented market growth
Greater Sacramento is experiencing incredible market momentum, culminating in the development of key projects that will change the region’s economic landscape. Aggie Square, UC Davis’ $1.1. billion life science research park developed by Wexford, broke ground in February 2022. The California Mobility Center is also growing, with plans for a $30-50 million expansion of its 25k-sq-ft ZEV ramp-up factory. With this activity, GSEC’s business development pipeline has never been stronger. We’ve seen a 19% increase in year-over-year project activity. The region has also recovered all the jobs it lost during the COVID-19 pandemic — the first time in 30 years it’s recovered faster than California.
Learn more about what’s driving our #CApitalMomentum →
Newmark joint report: Greater Sacramento’s Market Momentum
A new report from Newmark and GSEC shows that Greater Sacramento’s growth trajectory is set to go into overdrive over the next five years, driven by population growth, diversity, talent and investment.
Download the report
Related Articles
Announcing the 2023 Greater Sacramento Life Sciences Report
Greater Sacramento is seeing accelerating momentum in its life sciences industry. Ranked the number two market in the country for life sciences growth this year, Sacramento is home to a burgeoning science-driven innovation cluster anchored by UC Davis, the number one U.S. university for agriculture and forestry and veterinary medicine.
Greater Sacramento Receives #3 Economic Development Organization in World from International Economic Development Council
GSEC took home four awards and received top honors at the Annual International Economic Development Council (IEDC) Conference.
Let’s talk, Sac!
The Greater Sacramento Economic Council (GSEC) is diligently working on launching a new regional brand for business and running surveys now through October 26 to solicit input from the community on what makes the region the best place to live, work and do business. Survey participants will be entered to win one of five $50 gift cards.