QUARTERLYREPORTJULY 2025
ECONOMIC DEVELOPMENT
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TABLE OF
CONTENTS
MISSION, VISION,
PURPOSE, &
GOALS
8 3
1 0
4 1 1
5 1 4
WORKFORCE &
LABOR
STATISTICS
COMMERCIAL
REAL ESTATE
INDICATORS
HOUSING DATA
COMMUNITY
PROFILE METRICS
BUSINESS &
DEVELOPMENT
INDICATORS
PROGRAM
METRICS
TRANSPORTATION 1 7
ARTS, CULTURE, &
EVENTS 1 8
SOURCES &
DISCLAIMER 2 0
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The unemployment rate in Santa Rosa was 4.7% in June 2025. In Sonoma County, it was 4.6 percent in June 2025, up from a revised 3.8 percent in May 2025, and above the year-ago estimate of 4.2 percent. This compares with an unadjusted unemployment rate of 5.7 percent for California and 4.4 percent for the nation during the same period.
Source: Employment Development Department (EDD)
Sonoma County
WORKFORCE AND
LABOR STATISTICS
Sonoma County, June 2025
Average Salary: $74,299
Average Hourly Wage: $35.72
Santa Rosa, July 2025
Average Salary: $61,235
Average Hourly Wage: $29
Source: ZipRecruiter
UNEMPLOYMENT RATE
WAGE METRICS
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COMMERCIAL REAL
ESTATE INDICATORS
TRENDING VACANCY RATES - RETAIL
5 The Santa Rosa retail submarket has a vacancy rate of 5.3% as of the third quarter of 2025. Santa Rosa's vacancy rate of 5.3% compares to the submarket's five-year average of 4.1% and the 10-year average of
3.4%. Among the retail subtypes, neighborhood center vacancy stands at 7.3%, power center vacancy is
0.7%, strip center vacancy is 2.5%, mall vacancy is 4.0%, and general retail vacancy is 5.6%. The Santa Rosa retail submarket has roughly 690,000 SF of space listed as available, for an availability rate of 6.1%.
Retail
Source: CoStar
The Santa Rosa industrial submarket has a vacancy rate of 8.3% as of the third quarter of 2025. Santa Rosa's vacancy rate of 8.3% compares to the submarket's five-year average of 5.4% and the 10-year average of 4.9%. The Santa Rosa industrial submarket has roughly 970,000 SF of space listed as available, for an availability rate of 7.9%. As of the third quarter of 2025, there is 22,000 SF of industrial space under construction in Santa Rosa.
TRENDING VACANCY RATES - INDUSTRIAL
The Santa Rosa office submarket has a vacancy rate of 7.1% as of the third quarter of 2025. Santa Rosa's vacancy rate of 7.1% compares to the submarket's five-year average of 7.2% and the 10-year average of
5.9%. The Santa Rosa office submarket has roughly 740,000 SF of space listed as available, for an availability rate of 7.7%. As of the third quarter of 2025, there is no office space under construction in Santa Rosa. In comparison, the submarket has averaged 950 SF of under construction inventory over the past 10 years.
TRENDING VACANCY RATES - OFFICE
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COMMERCIAL REAL
ESTATE INDICATORS
MARKET RATES - OFFICE
Average rents in Santa Rosa are roughly $26.00/SF, compared to the wider Santa Rosa market average of $26.00/SF.
Estimated office market pricing in Santa Rosa is $212/SF compared to the market average of $214/SF. Average market pricing for Santa Rosa is estimated at $239/SF for 4 & 5 Star properties, $201/SF for 3 Star assets, and $221/SF for 1 & 2 Star buildings.
MARKET RATES - RETAIL
6 Market rents in Santa Rosa are $29.00/SF. Rents have changed by 2.0% year-over-year in Santa Rosa, compared to a change of 1.3% across Santa Rosa as a whole. Estimated retail market pricing in Santa Rosa is $288/SF compared to the market average of $295/SF. Average market pricing for Santa Rosa is estimated at $270/SF for neighborhood center properties, $268/SF for power center properties, $280/SF for strip center properties, $260/SF for mall properties, and $310/SF for general retail properties.
MARKET RATES - INDUSTRIAL
Market rents in Santa Rosa are $16.40/SF. Rents average around $15.50/SF for logistics buildings, $18.00/SF for flex properties, and $17.10/SF for specialized assets. Estimated industrial market pricing in Santa Rosa is $210/SF compared to the market average of $205/SF. Average market pricing for Santa Rosa is estimated at $200/SF for logistics properties, $240/SF for flex assets, and $200/SF for specialized buildings.
Retail
Source: CoStar
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STOREFRONT SPACE -
DOWNTOWN
SANTA ROSA
Source: Keegan and Coppin
There are currently 15 vacancies in
the downtown area, representing
0.05% of all downtown properties
within the boundaries of the
Downtown Action Organization and
the Railroad Square Association.
COMMERCIAL REAL
ESTATE INDICATORS
7 Source: CoStar
RETAIL SPACE -
SANTA ROSA
There are currently 1104 vacancies
in all of Santa Rosa.
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Source: California Business and Economic Development
HOUSING DATA
New building permits (residential): 34
HOUSING CONSTRUCTION
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HOUSING DATA
New building permits (non-residential): 3
HOUSING CONSTRUCTION
9 Source: Zillow
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COMMUNITY PROFILE
METRICS
Households in Santa Rosa earn a median yearly income of $94,462. 47.3% of the households earn more than the national average each year. Household expenditures average $114,497 per year. The majority of earnings get spent on Tax and Retirement, Shelter, Transportation, Grocery, and Health Care.
Source: California Business and Economic Development
INCOME AND SPENDING
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BUSINESS AND
DEVELOPMENT
INDICATORS
BUSINESS LICENSES
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Source: Bureau of Labor Statistics
BUSINESS AND
DEVELOPMENT
INDICATORS
BUSINESSES IN KEY INDUSTRIES POTENTIAL BUSINESS
OPPORTUNITIES
12 ZONING CLEARANCE APPLICATIONS
More information coming soon.
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BUSINESS &
DEVELOPMENT
INDICATORS
NEW BUSINESS HIGHLIGHTS
BUSINESSES CLOSED
County-wide
Date Range: July 1, 2024 – June 30, 2025 – 24/25 fiscal year 13 Santa Rosa
Date Range: January - June 2025
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PROGRAM METRICS
GLOBAL ECONOMIC CONDITIONS - UNITED STATES
14 Compared to the first quarter, the upturn in real GDP in the second quarter primarily reflected a downturn in imports and an acceleration in consumer spending that were partly offset by a downturn in investment.
Real final sales to private domestic purchasers, the sum of consumer spending and gross private fixed investment, increased 1.2 percent in the second quarter, compared with an increase of 1.9 percent in the first quarter.
The price index for gross domestic purchases increased 1.9 percent in the second quarter, compared with an increase of 3.4 percent in the first quarter. The personal consumption expenditures (PCE) price index increased 2.1 percent, compared with an increase of 3.7 percent. Excluding food and energy prices, the PCE price index increased 2.5 percent, compared with an increase of 3.5 percent.
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PROGRAM METRICS
REGIONAL ECONOMIC CONDITIONS - SONOMA COUNTY
15 GLOBAL ECONOMIC CONDITIONS - CALIFORNIA
In Q1 2025, California’s economy showed modest improvement. Real GDP held steady at $3.39T, slightly above the 2024 average. Payroll jobs remained flat at 18.0 million, while the unemployment rate ticked up to 5.4%. Personal income grew strongly, up 5.2% annualized from 2024. Housing starts rebounded sharply to 115,100 units, and home prices rose 1.5% year-over-year.
Sonoma County is home to approximately 26,686 businesses, supporting an estimated 208,094 employees. The county generates an estimated $39.9 billion in annual revenue, reflecting a strong regional economy. As of the fourth quarter of 2024, the average weekly wage in the Santa Rosa metro area was $1,452—slightly below the national average of $1,507.
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PROGRAM METRICS
PROGRAMS AND FUNDING
ANNUAL SURVEY
16 The chart below highlights select programs funded in the 2024–2025 fiscal year. It represents a snapshot of key Economic Development projects currently underway, rather than the full department budget.
The Annual, District-based survey was released on July 14, and will remain open until August 15. As of August 1, there are 172 responses, and a snapshot of two of the question responses are below. The data show that respondents rate the economic growth in their neighborhood as staying the same, and that the City can support small businesses by improving permitting processes, improving infrastructure, providing grants, loans, and incentives, and creating programs to support entrepreneurs.
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TRANSPORTATION
Source: California Business and Economic Development
17 Source: US News - Real Estate News
Santa Rosa residents enjoy a relatively short average commute time of 17.8 minutes—4.2 minutes less than the national average. The majority of commuters (79%) drive to work, with smaller percentages using public transit (3.7%), walking (2.4%), or biking (0.5%). Santa Rosa area is served by 12 airports within 50 miles, has freight rail access, and is located 12 miles from the nearest interstate.
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ARTS, CULTURE, & EVENTS
18 ART PROGRAMS & EXHIBITS
Roseland Big Belly Trash Can Project: Partnered with
Streets to Creeks and local artists of all ages to design vibrant, culturally relevant artwork wraps for trash
receptacles in Roseland, transforming everyday
infrastructure into functional art!
22nd Annual National Arts Program Exhibition:
Showcased over 150 works by artists of all ages and
backgrounds that are residents of City of Santa, City
employees and retirees. The National Arts program
focuses on fostering an inclusive community that builds confidence and encourages self-expression.
Earthbound: Art for a Sustainable Future: A temporary
exhibition highlighting environmentally-focused artworks that promote sustainability and inspire conversation
around climate action. Exhibition in April in partnership with Earth Day.
Call for Temporary Art Walk (opening Fall 2025): An
open call was launched for new temporary public art
installations along the Art Walk, set to debut in
downtown and RRSQ in September/October. With 110
applications from artists across the US, this continues to elevate us as a growing arts destination.
Website: The Public Art Program’s website now
features new ways for the community to get involved.
Visitors can now:
Apply to serve as a selection panelist for
upcoming public art projects
Submit a public art proposal for temporary or
permanent installations
Apply to exhibit artwork at the Finley
Community Center
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ARTS, CULTURE, & EVENTS
19 SPECIAL EVENTS
January 2025 - June 2025
47 permitted events City-wide
43 Downtown, 3 Railroad Square, 1 Roseland
Approximate attendees: 144780
This year’s events include a wide range of
celebrations and community gatherings such as
Posada in the Wine Country, the St. Patrick's Day
5K, and the Pliny the Younger Release.
Community awareness and cultural events like
World Parkinson's Awareness, Earth Day, Dia Del
Niños, the 50th Anniversary of the Fall of Saigon,
MMIW Awareness March, and Sonoma County
Pride also took place.
Local markets and vendor events featured prominently, including the Sueños Market, SOCO Market, Santa Rosa Wednesday Night Market, and Second Sundays. Additional highlights included the Classic Car Display, Roseland Cinco de Mayo, Bike to Work Celebration, Luther Burbank Rose Parade and Festival, Railroad Square Antique Fair, Sunday Farmer's Market, the Peggy Sue Car Show and Cruise, the Juneteenth Festival, and Summer on the Square.
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SOURCES & DISCLAIMER
20 State of California Department of Finance
Bureau of Economic Analysis
City of Santa Rosa Insights
Bureau of Labor Statistics
Employment Development Department
OEWS Employment and Wage Statistics
Keegan & Coppin
CoStar
Zoom Prospector
ZipRecruiter
Zillow
Comercia
Real Estate News
RESOURCES
DISCLAIMER
This report is provided by the City of Santa Rosa Economic Development Division as a compilation of general market and economic data, along with key local performance indicators, gathered from a variety of public and private sources. While City staff review and vet the information for relevance and consistency, the City of Santa Rosa does not independently produce the underlying data and therefore cannot attest to the methodologies used, nor guarantee the accuracy, completeness, or timeliness of the information presented.
Data contained in this report is subject to revision or update by the original sources at any time, and figures may differ from other publications or subsequent releases. Most data is historical in nature and reflects past conditions; it should not be relied upon as a forecast or guarantee of future economic performance. Users of this report are encouraged to consult the original sources for additional context, methodology, and the most current information available.
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