Business Climate

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 Marketbeat Report Q4, 2023

Industrial lease rates per sq. ft.


Source: C&W Marketbeat Report Q4, 2023

Retail lease rates per sq. ft.


Source: C&W Marketbeat Report Q4, 2023

Office vacancy rates


Source: C&W Marketbeat Report Q4, 2023

Industrial vacancy rates


Source: C&W Marketbeat Report Q4, 2023

Retail vacancy rates


Source: C&W Marketbeat Report Q4, 2023

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.

Management companies and enterprises

Source: EMSI Occupation Characteristics 2019
Manufacturing

Source: EMSI Occupation Characteristics 2019
Professional scientific and technical

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 2021 Total State and Local taxes

See Greater Sacramento’s available incentives