Greater Sacramento Continues to Emerge as an Innovation Hub

SACRAMENTO—A new study, Greater Sacramento Fostering Innovation and Ambition, offers pre- and post-pandemic insights around the region’s growing economy and real estate demand. Cushman & Wakefield, with support from the Greater Sacramento Economic Council, published the report.

“This report illustrates Sacramento’s value proposition in terms of providing a low-cost, high-skill pool of talent but also a quality of life that cannot be replicated anywhere in the state,” says Ron Thomas, executive managing director at Cushman & Wakefield, who spearheaded this year’s report. “Sharing a talent pool with the San Francisco Bay Area, our region boasts over 79,000 employees possessing in-demand technical skills sought by top tech and life science firms, while our regional educational institutions continue to produce some of the industry’s top talent. Greater Sacramento continues to emerge as a hub for innovation in several key industries including life science, technology and healthcare.”

The report reveals that there are more than 384,000 students enrolled in a four-year university within a 100-mile radius of Sacramento, and of the region’s 79,000 skilled employees, nearly 13% attended California State University Sacramento and more than 10% attended UC Davis. Greater Sacramento also ranks second in the West region as a percentage of employees having a four-year science, technology, engineering and math degree, ranking only behind Seattle.

Greater Sacramento is the number one location option for talent migrating from the San Francisco Bay Area. Greater Sacramento attracted 29,000 people from the Bay Area between 2013 and 2017. That is nearly four times higher than the second-highest relocations in Seattle (7,700) followed by Portland (4,600), Denver (3,200), Austin (3,000) and Salt Lake City (1,600).

Furthermore, Greater Sacramento has averaged a total of 12,300 migrants annually moving into the region during the past five years. Moreover, the region was the most popular migration site this year, with more than half of home searches from buyers outside the area.

“The Sacramento region offers young talent the ability to be innovative with access to the most dynamic economy in the world, due to our close proximity to the Bay Area,” says Barry Broome, Greater Sacramento Economic Council president and CEO. “Our region allows workers the ability to have an active lifestyle within Northern California, which is one of the key reasons why we are an attractive place to live, work and play, all within a cost-effective price point.”

Greater Sacramento’s urban lifestyle is another appealing factor, led by the downtown and Midtown neighborhoods as its cultural center. Within the 500-plus blocks known as “the Grid,” some of the city’s best restaurants, shops and attractions are easily explored via foot, bike or electric scooter. Midtown was also named a “cool street” by Cushman & Wakefield, a title the firm bestowed on some of the most popular urban retail markets across North America in its most recent Cool Streets report series in 2019.

Other popular characteristics include being America’s Farm-to-Fork capital, and having more than 70 local breweries, 200 wineries and 100 golf courses.

And, Greater Sacramento is also home to several global tech and life sciences companies.

“Sacramento provides a unique opportunity in the state of California as the only major metropolitan area that offers a superior level of high-skilled employment combined with low business costs and an affordable lifestyle,” Will Austin, Cushman & Wakefield senior research analyst, tells GlobeSt.com. “The region currently offers more than 79,000 tech and life science employees while being a prime relocation destination for tech workers looking to leave the Bay Area. A number of companies have already capitalized on the region’s unique combination of talent and affordability such as DialSource, Zennify, Accenture and Trifecta to name a few.”

Business leaders from these companies shared reasons for relocation to Greater Sacramento in the report.

“Greater Sacramento is an extremely opportunistic area for expansion,” says Joshua Tillman, founder and CEO of DialSource. “We are close to top-tier universities, we have brilliant individuals who work hard, we have a great geographic area along the beautiful river, and it is easy to get in and out of the state while enjoying some of the best treasures that California has to offer, all within a simple 90-minute drive.”

Transportation services as well as reasonable commute times are other pulls for employees and employers. And, affluent bedroom communities surround its largest office submarkets, meaning there is plentiful housing near workplaces. As a result, the region continues to develop more housing to support demand and growth, accommodating both local and remote workers, says Thomas.

“Greater Sacramento offers an attractive Northern California lifestyle with a lively urban core and desirable suburban areas, some of California’s top cities to raise a family, and plenty of outdoor recreation space,” Thomas tells GlobeSt.com. “The region provides an approachable cost of living with appealing neighborhoods and short commutes. And when combined with its highly skilled and talented labor pool and educational systems, has continued to see companies wanting to move or establish a presence in Greater Sacramento. With so many factors enriching the employee experience, Greater Sacramento has a lower turnover rate than other emerging tech markets. We took pride in putting this report together, and which the comprehensive data our team compiled, speaks to the many clear advantages that Greater Sacramento has to offer.”