QUARTERLYREPORTJULY 2026
E C O N O M I C D E V E L O P M E N T
T A B L E O F
C O N T E N T S
MISSION, VISION,
PURPOSE, & GOALS
14 3
16 7
18 8
21 WORKFORCE &
LABOR STATISTICS
COMMERCIAL REAL
ESTATE
INDICATORS
HOUSING DATA
COMMUNITY
PROFILE METRICS
BUSINESS &
DEVELOPMENT
INDICATORS
PROGRAM METRICS
TRANSPORTATION 23
ARTS, CULTURE, &
EVENTS 24
SOURCES &
DISCLAIMER 30
MESSAGE FROM
THE CHAIR
IMPLEMENTATION
PLAN
BUSINESS SUPPORT
4 5
29 MCROECONOMIC
OVERVIEW 6
LOCAL RECAP 17
RETAIL MARKET
OVERVIEW 13
S a n t a R o s a c o n t i n u e s t o d e m o n s t r a t e r e s i l i e n c e , i n g e n u i t y , a n d d e t e r m i n a t i o n c o l l e c t i v e l y t o f o s t e r a t h r i v i n g l o c a l e c o n o m y . T h i s Q u a r t e r l y E c o n o m i c D e v e l o p m e n t R e p o r t p r o v i d e s a n i n - d e p t h l o o k a t t h e l a t e s t t r e n d s a n d p e r f o r m a n c e i n d i c a t o r s s h a p i n g o u r c i t y ’ s u n i q u e e c o n o m i c l a n d s c a p e . I t e n c o m p a s s e s w o r k f o r c e s t a t i s t i c s , c o m m e r c i a l r e a l e s t a t e a c t i v i t y , h o u s i n g d a t a , c o m m u n i t y e v e n t s , a n d p r o g r a m u p d a t e s , o f f e r i n g a c o m p r e h e n s i v e u n d e r s t a n d i n g o f o u r s t r e n g t h s , c h a l l e n g e s , a n d g r o w t h o p p o r t u n i t i e s .
T h e r e p o r t ’ s p u r p o s e e x t e n d s b e y o n d p r e s e n t i n g d a t a ; i t c o n n e c t s t h e s e f i g u r e s t o t h e b r o a d e r n a r r a t i v e o f S a n t a R o s a ’ s e c o n o m i c f u t u r e . O u r c i t y ’ s v i t a l i t y d e p e n d s o n i n f o r m e d d e c i s i o n s g u i d e d b y r e a l d a t a , a l i g n e d w i t h t h e E c o n o m i c D e v e l o p m e n t S t r a t e g i c P l a n a d o p t e d b y t h e C i t y C o u n c i l i n 2 0 2 4 . K e y i n d i c a t o r s s u c h a s e m p l o y m e n t r a t e s , b u s i n e s s a c t i v i t y , d e v e l o p m e n t t r e n d s , a n d c u l t u r a l e v e n t s w h i l e o f f e r i n g a q u i c k s n a p s h o t o f h o w o u r c o m m u n i t y i s p e r f o r m i n g a n d w h e r e t a r g e t e d a c t i o n s c a n h a v e t h e g r e a t e s t i m p a c t .
T h e m e t r i c s y o u w i l l s e e h e r e a r e i n t e g r a l t o a c h i e v i n g t h e c i t y ’ s o v e r a r c h i n g g o a l s : f o s t e r i n g a s t r o n g , d i v e r s e e c o n o m y , c r e a t i n g q u a l i t y j o b s , e n s u r i n g h o u s i n g o p p o r t u n i t i e s a n d b u i l d i n g a c o m m u n i t y t h a t i s c o n n e c t e d , v i b r a n t , a n d i n c l u s i v e . E a c h c h a r t , t a b l e , a n d p r o g r a m h i g h l i g h t t h e r e i n i s p a r t o f a l a r g e r s t r a t e g i c e f f o r t t o p o s i t i o n S a n t a R o s a a s a h u b f o r i n n o v a t i o n , i n v e s t m e n t , a n d q u a l i t y o f l i f e . T h i s e n d e a v o r i s a c o l l a b o r a t i v e e f f o r t , i n v o l v i n g C i t y s t a f f , l o c a l b u s i n e s s e s , n o n p r o f i t o r g a n i z a t i o n s , e d u c a t i o n a l i n s t i t u t i o n s , a n d r e g i o n a l p a r t n e r s .
I w a n t t o a c k n o w l e d g e t h e d e d i c a t i o n o f o u r E c o n o m i c D e v e l o p m e n t s t a f f , t h e b u s i n e s s e s w h o c o n t i n u e t o i n v e s t h e r e , a n d t h e c o m m u n i t y m e m b e r s w h o s e e n g a g e m e n t k e e p s o u r p r i o r i t i e s f o c u s e d a n d r e l e v a n t . Y o u r c o m m i t m e n t d r i v e s t h e p r o g r e s s r e f l e c t e d i n t h e s e p a g e s . T o g e t h e r , w e a d v a n c e i n i t i a t i v e s t h a t s t r e n g t h e n n e i g h b o r h o o d s , e n h a n c e i n f r a s t r u c t u r e , a n d c r e a t e o p p o r t u n i t i e s f o r a l l r e s i d e n t s .
A s C h a i r o f t h e C i t y C o u n c i l ’ s E c o n o m i c D e v e l o p m e n t S u b c o m m i t t e e , I a f f i r m o u r c o m m i t m e n t t o a d v a n c i n g t h e c o u n c i l - a d o p t e d E c o n o m i c D e v e l o p m e n t S t r a t e g y t r a c k i n g p r o g r e s s w i t h t r a n s p a r e n c y a n d i n t e n t . T h i s r e p o r t s e r v e s b o t h a s a c h e c k p o i n t a n d a r o a d m a p , e n s u r i n g a l i g n m e n t w i t h o u r g o a l s a n d a d a p t a b i l i t y t o e v o l v i n g c o n d i t i o n s . T h a n k y o u f o r c o n t r i b u t i n g t o o u r c o l l e c t i v e e f f o r t m a k i n g S a n t a R o s a a c i t y w h e r e b u s i n e s s e s t h r i v e , r e s i d e n t s p r o s p e r , a n d o u r f u t u r e r e m a i n s b r i g h t .
MESSAGE
FROM THE
CHAIR
JEFF OKREPKIE
VICE MAYOR - DISTRICT 6
ECONOMIC DEVELOPMENT SUBCOMMITTEE CHAIR
3 4
5 MACROECONOMIC
OVERVIEW FOR
SANTA ROSA
JULY 2026
PROVIDED BY DR. ROBERT EYLER
6 A s w e b e g i n s u m m e r 2 0 2 6 , g e o p o l i t i c a l i s s u e s a n d t h e l o n g - t e r m g a i n s f r o m a r t i f i c i a l i n t e l l i g e n c e ( A I ) a r e d r i v i n g m a c r o e c o n o m i c f o r e c a s t s a n d i n v e s t o r o u t l o o k s . T h e c o n f l i c t w i t h I r a n a n d s u b s e q u e n t c h a n g e s i n w h o l e s a l e p e t r o l e u m p r i c e s ( a s w e l l a s i n f u t u r e s m a r k e t s f o r o i l a n d g a s o l i n e ) a r e b e g i n n i n g t o r a i s e c o n c e r n s i n p o l i c y c i r c l e s t h a t r e c e n t c h a n g e s i n c o n s u m e r i n f l a t i o n m a y n o w b e s t r u c t u r a l . T h e F e d e r a l R e s e r v e i s c o n s i d e r i n g w h e t h e r i n t e r e s t r a t e s n e e d t o r i s e a f t e r p e a k i n g i n 2 0 2 4 , a n d h a s s i n c e b e e n s l o w l y l o w e r i n g t h e m t o c o m b a t n e w i n f l a t i o n p r e s s u r e s . T h i s i s j u x t a p o s e d w i t h r i s k c o n s i d e r a t i o n s i n e q u i t y m a r k e t s r e g a r d i n g r e t u r n s t o A I f i r m s a n d , i n d i r e c t l y , t o t h o u s a n d s o f p u b l i c l y t r a d e d c o m p a n i e s . W h i l e w e h a v e y e t t o s e e a m a j o r c o n t r a c t i o n i n s t o c k m a r k e t s l a s t m o r e t h a n a f e w w e e k s ( r e a l l y s i n c e b e f o r e t h e p a n d e m i c ) , t h e s p e c t e r o f s u c h a c o n t r a c t i o n , e s p e c i a l l y i f i n t e r e s t r a t e s l o o k t o r e v e r s e i n t r e n d , m a y s t a r t t o w e i g h o n d e c i s i o n - m a k i n g b y f i r m s a n d g o v e r n m e n t s a n d v o t e r s a s m i d t e r m e l e c t i o n s g e t c l o s e r . O u r i n t e r e s t r a t e e n v i r o n m e n t h a s s o m e e f f e c t o n r e g i o n a l h o u s i n g m a r k e t s , c o m m e r c i a l r e a l e s t a t e u t i l i z a t i o n , a n d e q u i p m e n t p u r c h a s e s a s r e a l i n v e s t m e n t i n t h e e x p a n s i o n o f S a n t a R o s a b u s i n e s s e s . T h e e v o l u t i o n ( o r d e v o l u t i o n ) o f t r a d e a g r e e m e n t s , c o n t i n u e d g e o p o l i t i c a l i s s u e s i n U k r a i n e a n d o t h e r p a r t s o f t h e w o r l d b e y o n d t h e P e r s i a n G u l f .
N a t i o n a l l a b o r m a r k e t s c o n t i n u e t o c r e a t e j o b s e v e r y m o n t h a f t e r s e a s o n a l a d j u s t m e n t s . J o b s g r o w t h h a s b e e n a c o n t e s t e d e s t i m a t e s i n c e e a r l y 2 0 2 5 . W h i l e j o b c u t s i n f r o n t i e r - t e c h f i r m s m a k e n e w s h e a d l i n e s a n d h a v e c o n t r a c t e d f r o m r e c e n t p e a k s , h e a l t h c a r e a n d j o b s a t h o t e l s a n d r e s t a u r a n t s c o n t i n u e t o g r o w . C o n s t r u c t i o n j o b s h a v e i n c r e a s e d b y 0 . 8 p e r c e n t f r o m J u n e 2 0 2 5 t o J u n e 2 0 2 6 , w h i l e m a n u f a c t u r i n g j o b s h a v e f a l l e n b y a b o u t 1 p e r c e n t ; t h e s e i n d u s t r i e s h a v e h i s t o r i c a l l y b e e n d r i v e r s o f t h e e c o n o m y o u t s i d e o f t e c h n o l o g y j o b s a n d a r e g e n e r a l l y t i e d t o c a p i t a l i n v e s t m e n t i n h o u s i n g o r c o m m e r c i a l s p a c e s . W i t h j o b s u p 0 . 8 p e r c e n t o v e r a l l s i n c e J u n e 2 0 2 5 ( J u n e 2 0 2 6 d a t a a r e t h e l a t e s t a t t h e t i m e o f t h i s w r i t i n g ) , t h e i n c r e a s e s u g g e s t s t h a t b u s i n e s s c o n f i d e n c e r e m a i n s s t r o n g e n o u g h t o c o n t i n u e h i r i n g w o r k e r s .
C a l i f o r n i a ’ s l a b o r m a r k e t i s m o r e c o n c e r n i n g . T h e l a b o r f o r c e i s d o w n o v e r o n e p e r c e n t , w h i c h i s C a l i f o r n i a n s s e e k i n g w o r k o r w o r k i n g . T h e n u m b e r o f C a l i f o r n i a n s w h o r u n t h e i r o w n b u s i n e s s e s o r h a v e j o b s i s d o w n 0 . 7 p e r c e n t , s o f e w e r t h a n t h e l a b o r f o r c e , w h i c h m e a n s u n e m p l o y m e n t h a s d e c r e a s e d t o 5 . 2 p e r c e n t a s o f J u n e 2 0 2 6 f r o m 5 . 5 p e r c e n t i n J u n e 2 0 2 5 a f t e r s e a s o n a l a d j u s t m e n t s , e v e n t h o u g h f e w e r C a l i f o r n i a n s a r e w o r k i n g . H o w e v e r , t h e n u m b e r o f p e o p l e w i t h C a l i f o r n i a - b a s e d j o b s i s u p 0 . 7 p e r c e n t , s u g g e s t i n g t h a t m a n y o f t h e n e w h i r e s a r e f r o m o u t s i d e C a l i f o r n i a .
A g r i c u l t u r a l j o b s h a v e f a l l e n b y 1 . 3 p e r c e n t ; t h e w i n e i n d u s t r y ’ s f u t u r e i s a c o n c e r n f o r S o n o m a , N a p a a n d n e i g h b o r i n g c o u n t i e s a s b o t h d e m a n d a n d s u p p l y c o n t i n u e t o a d j u s t . C o n s t r u c t i o n a n d m a n u f a c t u r i n g j o b s a r e d o w n 1 . 7 a n d 1 . 1 p e r c e n t , r e s p e c t i v e l y . T e c h j o b s a r e d o w n o v e r 3 . 1 p e r c e n t , b u t h e a l t h c a r e i s u p 4 . 5 p e r c e n t ; h o t e l s a n d r e s t a u r a n t s h i r i n g i n c r e a s e d b y 1 . 8 p e r c e n t . A v e r a g e w a g e g r o w t h i n C a l i f o r n i a w a s 2 . 7 p e r c e n t i n J u n e 2 0 2 6 f r o m J u n e 2 0 2 5 , d o w n f r o m M a y 2 0 2 6 , w h e n g r o w t h w a s j u s t o v e r 4 p e r c e n t a n d h a d b e e n s t a b l e a r o u n d 4 p e r c e n t f o r t h e l a s t y e a r i n 1 2 - m o n t h c o m p a r i s o n s . W e n e e d t o w a t c h w a g e g r o w t h c l o s e l y , a s a s h r i n k i n g l a b o r f o r c e i n C a l i f o r n i a s u g g e s t s w e m a y b e g i n t o s e e h i g h e r w a g e d e m a n d s g o u n m e t ( b e c a u s e b u s i n e s s e s c a n h i r e i n o t h e r s t a t e s w h e r e w a g e d e m a n d s a r e l o w e r o n a v e r a g e ) o r h i r i n g m a y s l o w l y c o n t r a c t .
O v e r a l l , f o r e c a s t s f o r b o t h t h e n a t i o n a l a n d s t a t e e c o n o m i e s r e m a i n h e a l t h y b u t n o t r o b u s t : r e c e s s i o n i s n o t e x p e c t e d , a n d j o b s a n d i n c o m e g r o w t h a f t e r i n f l a t i o n a r e p r e d i c t e d , b u t a t s l o w e r r a t e s t h r o u g h 2 0 2 8 .
Santa Rosa’s residents have experienced a drop in unemployment from May 2025 to May 2026. Similar to California’s labor market generally, Santa Rosa has seen some contraction in the labor force and total residents with jobs, such that a larger percentage of labor force participants are working, but no growth in the total number of working residents. Unemployment remains below the state and national averages. Regionally, the first quarter of 2026 saw an increase in worker costs (wages and benefits), some of which were likely driven by increased fuel costs and rising inflation. In Sonoma County, job growth has been positive since May 2025, as shown in the tables here, with professional services, healthcare, and leisure and hospitality (think event centers, hotels, and restaurants) leading the way.
Analysis provided by Dr. Robert Eyler
WORKFORCE AND
LABOR STATISTICS
Sonoma County, July 2026
Average Salary: $64,522
Santa Rosa, July 2026
Average Salary: $62,700
Average Hourly Wage: $30.14
U N E M P L O Y M E N T R A T E
W A G E M E T R I C S
7 I n d u s t r i a l
S o u r c e : C o S t a r
COMMERCIAL REAL
ESTATE INDICATORS
T R E N D I N G V A C A N C Y R A T E S - R E T A I L 8 The Santa Rosa retail submarket has a vacancy rate of 5.7% as of the third quarter of 2026. Over the past year, the submarket's vacancy rate has changed by 0.6%, a result of no net delivered space and -65,000 SF of net absorption.
Santa Rosa's vacancy rate of 5.7% compares to the submarket's five-year average of 4.4% and the 10-year average of
3.8%. Overall submarket vacancy is forecast to end 2026 at 5.8%. Among the retail subtypes, neighborhood center vacancy stands at 7.6%, power center vacancy is 0.7%, strip center vacancy is 2.9%, mall vacancy is 4.7%, and general retail vacancy is 6.1%. The Santa Rosa retail submarket has roughly 710,000 SF of space listed as available, for an availability rate of 6.4%.
The Santa Rosa Submarket is within Santa Rosa city limits, and “Santa Rosa” is Sonoma County limits, or the Santa Rosa area market.
The Santa Rosa industrial submarket has a
vacancy rate of 7.5% as of the third quarter of
2026. Santa Rosa's vacancy rate of 7.5%
compares to the submarket's five-year average
of 6.0% and the 10-year average of 4.9%. The
Santa Rosa industrial submarket has roughly
1.0 million SF of space listed as available, for an
availability rate of 8.4%. As of the third quarter
of 2026, there is no industrial space under
construction in Santa Rosa.
T R E N D I N G V A C A N C Y
R A T E S - I N D U S T R I A L
The Santa Rosa office submarket has a vacancy rate of 7.9% as of the third quarter of 2026. Santa Rosa's vacancy rate of 7.9% compares to the submarket's five-year average of 7.7% and the 10-year average of 6.2%. Overall submarket vacancy is forecast to end 2026 at 7.9%. The Santa Rosa office submarket has roughly 790,000 SF of space listed as available, for an availability rate of 8.2%. As of the third quarter of 2026, there is no office space under construction in Santa Rosa.
T R E N D I N G V A C A N C Y R A T E S - O F F I C E CoStar's 1–5 Star Rating evaluates the
physical quality of a commercial building
using standardized criteria, allowing
properties to be compared consistently
across different markets. Ratings consider
factors such as building design, construction
quality, amenities, systems, finishes, and
overall condition.
R e t a i l
S o u r c e : C o S t a r
COMMERCIAL REAL
ESTATE INDICATORS
M A R K E T R A T E S - O F F I C E
Average rents in Santa Rosa are roughly $26.00/SF, compared to the wider Santa Rosa market average of $27.00/SF. Estimated office market pricing in Santa Rosa is $240/SF compared to the market average of $243/SF. Average market pricing for Santa Rosa is estimated at $271/SF for 4 & 5 Star properties, $242/SF for 3 Star assets, and $236/SF for 1 & 2 Star buildings.
M A R K E T R A T E S - R E T A I L
9 Market rents in Santa Rosa are $30.00/SF. Rents have changed by 1.9% 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 $285/SF compared to the market average of $292/SF. Average market pricing for Santa Rosa is estimated at $270/SF for neighborhood center properties, $261/SF for power center properties, $280/SF for strip center properties, $250/SF for mall properties, and $310/SF for general retail properties.
M A R K E T R A T E S - I N D U S T R I A L
Market rents in Santa Rosa are $16.60/SF. Rents average around $15.80/SF for logistics buildings, $18.40/SF for flex properties, and $17.40/SF for specialized assets. Estimated industrial market pricing in Santa Rosa is $220/SF compared to the market average of $219/SF. Average market pricing for Santa Rosa is estimated at $210/SF for logistics properties, $250/SF for flex assets, and $220/SF for specialized buildings.
S o u r c e : C o S t a r
Property Type Sales Volume Avg. Sale Price Price/SF Months to Sale Sale vs. Asking
Retail $2.6M $650K $178/SF 13 -6.30%
Office $19.4M $922K $122/SF 11.8 -7.00%
Industrial $11.7M $1.3M $119/SF 10.9 -5.60%
S T O R E F R O N T S P A C E -
D O W N T O W N
S A N T A R O S A
S o u r c e : C o S t a r
R e t a i l S p a c e - 1 7 v a c a n t r e t a i l p r o p e r t i e s f o r l e a s e i n t h e
d o w n t o w n a r e a . T h i s a c c o u n t s f o r l e s s t h a n 4 % o f a l l p r o p e r t i e s w i t h i n t h e b o u n d a r i e s o f t h e D o w n t o w n A c t i o n O r g a n i z a t i o n a n d t h e
R a i l r o a d S q u a r e A s s o c i a t i o n .
T h e S a n t a R o s a P l a z a M a l l a c c o u n t s f o r 1 8 % o f t h e d o w n t o w n r e t a i l
s p a c e i n t e r m s o f s q u a r e f o o t a g e .
COMMERCIAL REAL
ESTATE INDICATORS
10 R E T A I L S P A C E -
S A N T A R O S A
T h e r e a r e c u r r e n t l y 1 1 0 1 v a c a n c i e s i n a l l o f S a n t a R o s a . T h i s i n c l u d e s o v e r 6 2 7 , 0 0 0 s q u a r e f e e t o f v a c a n t r e t a i l s p a c e w i t h i n t h e C i t y . T h e r e a r e 7 3 4 v a c a n t i n d u s t r i a l p r o p e r t i e s a n d 9 5 0 o f f i c e p r o p e r t i e s .
S A L E S A C T I V I T Y
A p r i l 2 0 2 6 - J u n e 2 0 2 6
Property Type Leases Properties Total SF Leased Avg. Lease Size Avg. Asking Rent Retail 13 12 50,200 SF 3,865 SF $23.40/SF
Office 27 22 41,200 SF 1,527 SF $21.57/SF
Industrial 20 16 146,000 SF 7,325 SF $13.68/SF
Total 60 50 237,400 SF 3,957 SF —
Key Leasing Highlights
Industrial leasing led the market, totaling approximately 146,000 square feet, nearly three times the retail volume.
Retail commanded the highest asking rents at $23.40 per square foot, followed closely by office at $21.57 per square foot.
Average time required to lease space was relatively similar across sectors:
Retail: 7.9 months
Industrial: 7.9 months
Office: 9.8 months
Vacancies prior to leasing averaged roughly 10 months across all property types.
Office Leasing
27 leases were signed across 22 properties.
Average leased space was 1,527 SF, indicating continued demand from smaller office users.
Average lease term was 20 months.
Average asking rent was $21.57/SF, with Full-Service leases averaging $22.38/SF.
Retail Leasing
13 retail leases were completed across 12 properties.
Average leased space totaled 3,865 SF.
Retail continued to achieve the highest asking rents among the three property types at $23.40/SF.
Triple Net retail leases averaged $19.48/SF, while Modified Gross leases averaged $30.78/SF.
Industrial Leasing
Industrial leasing accounted for the largest amount of absorbed space (146,000 SF).
Average lease size reached 7,325 SF, reflecting larger user requirements.
Manufacturing and wholesale businesses represented the largest share of leased industrial space.
Industrial space remained the most affordable, averaging $13.68 per square foot, but tenants signed substantially longer leases (44.8 months).
L E A S E S E X E C U T E D - R E T A I L , O F F I C E , & I N D U S T R I A L
C O M M E R C I A L R E A L E S T A T E
11 S o u r c e : C o S t a r
A p r i l 2 0 2 6 - J u n e 2 0 2 6
L E A S E S E X E C U T E D - R E T A I L , O F F I C E , & I N D U S T R I A L
C O M M E R C I A L R E A L E S T A T E
12 S o u r c e : C o S t a r
A p r i l 2 0 2 6 - J u n e 2 0 2 6
R E T A I L M A R K E T O V E R V I E W - S A N T A R O S A
R E T A I L M A R K E T O V E R V I E W
13 The Santa Rosa commercial real estate market remained relatively stable during the second quarter of 2026. Market vacancy increased slightly to 5.8%, while asking rents continued to rise, reaching $30.32 per square foot. The market recorded 60,800 square feet of negative net absorption over the past 12 months, reflecting continued softness in leasing demand. Despite these challenges, market sale prices increased modestly to $284 per square foot, while the overall market capitalization rate remained steady at 6.5%.
S o u r c e : C o S t a r
The market vacancy rate increased from 5.3%
to 5.8% over the past year. While vacancy has
risen since 2023, recent forecasts suggest the
market is expected to stabilize around current
levels over the next several years. The modest
increase reflects ongoing adjustments as new
space is delivered and leasing activity
continues to normalize.
Santa Rosa recorded 60,800 square feet of
negative net absorption over the past 12
months, indicating that more commercial
space became vacant than was leased during
the period. While quarterly absorption has
fluctuated considerably in recent years,
forecasts indicate absorption is expected to
level off in the coming years as market
conditions stabilize.
Market sale prices continued their upward
trend, increasing to an average of $284 per
square foot, reflecting sustained investor
confidence despite broader market
challenges. Although quarterly sales volume
has varied significantly from year to year,
pricing has remained resilient and is forecast
to continue gradual growth over the next
several years.
S o u r c e : s r c i t y . o r g / d a t a - d a s h b o a r d s - a n d - m a p s S o u r c e : Z i l l o w
H O U S I N G D A T A
14 E N G I N E E R I N G D I V I S I O N U P D A T E S 4 sets of public improvement drawings approved for construction 2 subdivisions finaled with $900,000 worth of new and replaced public infrastructure completed 230,000 square feet of new and rehabilitated landscape approved per the City’s Water Efficient Landscape Ordinance
Projected to receive around 1,100 encroachment permits this year
H O U S I N G D A T A
15 New building permits (non-residential): 4
F i n d m o r e C i t y d a t a d a s h b o a r d s a t i n s i g h t s . s r c i t y . o r g 4082 permits submitted this calendar year for the Building division from April - June 2026 New building permits (residential): 104
H O U S I N G C O N S T R U C T I O N
h t t p s : / / i n s i g h t s . s r c i t y . o r g /
C O M M U N I T Y P R O F I L E
M E T R I C S
S a n t a R o s a ' s m e d i a n h o u s e h o l d i n c o m e i s $ 1 0 0 , 5 4 2 , e x c e e d i n g t h e n a t i o n a l m e d i a n b y 2 3 % . M o r e t h a n 2 6 , 0 0 0 h o u s e h o l d s e a r n b e t w e e n $ 1 0 0 , 0 0 0 a n d $ 2 5 0 , 0 0 0 a n n u a l l y , m a k i n g i t t h e c i t y ' s l a r g e s t i n c o m e s e g m e n t . C o m b i n e d w i t h a n a v e r a g e a n n u a l h o u s e h o l d e x p e n d i t u r e o f $ 1 1 9 , 6 1 8 , t h i s r e f l e c t s a s t r o n g c o n s u m e r b a s e w i t h s i g n i f i c a n t s p e n d i n g p o w e r a c r o s s h o u s i n g , t r a n s p o r t a t i o n , g r o c e r i e s , a n d o t h e r e s s e n t i a l g o o d s a n d s e r v i c e s .
S o u r c e : C a l i f o r n i a B u s i n e s s a n d E c o n o m i c D e v e l o p m e n t
I N C O M E A N D S P E N D I N G
16 L O C A L R E C A P
JULY 2026
PROVIDED BY
DR. ROBERT
EYLER
17 Santa Rosa’s labor market is following a pattern similar to California’s overall, where the unemployment rate among city residents in the labor force is falling while the labor force is falling. A lower city population remains, and shifts in the number of residents among current or potential workers point to an aging resident pool and to economic development challenges and opportunities for Santa Rosa toward 2027 and beyond.
Commercial real estate markets have seen vacancies creep up, while sales volume has increased in 2026 so far compared to 2025. Prices falling from asking prices make sense for moving properties in an environment where interest rates have either stagnated or increased, and economic uncertainty in some submarkets (retail, for example) has increased amid geopolitical/inflation concerns. The Santa Rosa Plaza remains a large footplate with relatively high vacancy and potential based on its location and opportunities. The longer lease terms are an encouraging sign that tenants want to locate in Santa Rosa.
A housing market watch for Santa Rosa is likely to begin for many homeowners and renters, as recent price changes and forecasts suggest a slow decline in home prices. That does not mean rents will stop their growth pattern; watching home sales and how some who sell their homes want to remain local may slightly increase demand for rental units as a short-term play, given where interest rates may be headed toward 2027. The tie here to median household incomes and local wage environments is affordability. Santa Rosa, because of its size and scope, remains competitive as a regional place to work and live; housing markets may draw an external audience because of Santa Rosa’s location, where demand for housing units is driven by external forces as much as by internal ones.
B U S I N E S S A N D
D E V E L O P M E N T
I N D I C A T O R S
B U S I N E S S L I C E N S E S
18 Trade, Transportation &
Utilities
Healthcare & Social
Assistance
Retail Trade
Leisure & Hospitality
Manufacturing
Accommodation & Food
Services
Construction
Nurse Practitioners
Physician Assistants
Solar Photovoltaic Installers
Medical & Health Services Managers
Home Health & Personal Care Aides
Data Scientists
Information Security Analysts
Mental & Behavioral Health Occupations
Professional & Business Services
Scientific & Technical Services
Management of Companies & Enterprises
Administrative & Support Services
Waste Management & Remediation (Administrative &
Support category)
Healthcare & Health Services
Advanced & Sustainable Manufacturing
Clean Energy & Climate Tech
Information Security, Software & Data Science
Behavioral & Community Health Services
Childcare & Early Childhood Education
Tourism, Culinary Arts & Experience Economy
Professional & Financial Services
Entertainment-Focused Retail
Food & Beverage Production
S o u r c e : B u s i n e s s R e c r u i t m e n t P l a n - T a r g e t I n d u s t r i e s R e p o r t
B U S I N E S S A N D
D E V E L O P M E N T
I N D I C A T O R S
T O P E M P L O Y M E N T
S E C T O R S
H I G H G R O W T H
O C C U P A T I O N S
19 I N D U S T R Y S E C T O R S W I T H
A B O V E - A V E R A G E
U N E M P L O Y M E N T ( > 4 % )
S A N T A R O S A ’ S R E C O M M E N D E D
T A R G E T I N D U S T R I E S F O R
R E C R U I T M E N T
Name Category Opened
(Month/Year) Address
Redwood Gospel
Baking Co. Bakery / Café
Apr 2026 2447 Summerfield
Rd., Unit 3, Santa
The Junction Restaurant / Beer
Garden
May 2026 1011 Cleveland Ave.,
Santa Rosa, CA
Parkside Eats Restaurant
May 2026 4323 Montgomery
Dr., Santa Rosa, CA
Mint Cuisine of India Restaurant
(Indian)
May 2026 170 Farmers Ln.,
Suite 8, Santa Rosa,
Kendra Scott Retail (Jewelry)
Jun 2026 2416 Sonoma Ave.,
Santa Rosa, CA
Café Carrusel Restaurant / Café
Jun 2026 630 Third St., Santa
Rosa, CA 95404
Happy Lemon Beverage / Bubble
Tea
Jun 2026 Santa Rosa Plaza,
Santa Rosa, CA
It's a Grind Coffee
House Coffee / Café
Jun 2026 Santa Rosa Plaza,
Santa Rosa, CA
B U S I N E S S &
D E V E L O P M E N T
I N D I C A T O R S
N E W B U S I N E S S H I G H L I G H T S
B U S I N E S S E S C L O S E D
C o u n t y - w i d e
D a t e R a n g e : A p r i l 2 0 2 6 - J u n e 2 0 2 6 20 S a n t a R o s a
D a t e R a n g e : A p r i l 2 0 2 6 - J u n e 2 0 2 6
N O N E
P R O G R A M M E T R I C S
E C O N O M I C C O N D I T I O N S - U N I T E D S T A T E S 21 P R O G R A M M E T R I C S
R E G I O N A L E C O N O M I C C O N D I T I O N S - S O N O M A C O U N T Y 22 E C O N O M I C C O N D I T I O N S - C A L I F O R N I A California’s economy is expected to outperform the national economy in 2026, driven largely by growth in the tech sector and the ongoing Artificial Intelligence boom, which will support business investment and high-income consumer spending. Despite this strength, challenges remain, including high business costs, slow population growth, and a softer labor market, though conditions are expected to improve later in the year. Tourism is projected to rebound, housing activity will be mixed, and income growth should benefit from tax changes—particularly for higher-income households.
The Sonoma County Economic Outlook provides a data-driven assessment of the county's current economic conditions and outlook, examining key indicators such as employment, industry performance, housing, demographics, commercial real estate, and consumer trends. The report highlights both current market conditions and forecasts to help businesses, policymakers, and community leaders better understand Sonoma County's economic opportunities and challenges.
T R A N S P O R T A T I O N
23 Santa Rosa offers strong regional connectivity, with an average commute time of just 22 minutes and convenient access to major transportation infrastructure. The city is served by 12 airports within a 50-mile radius, has freight rail service within the community, and is located just 12 miles from Interstate 80, providing efficient access for residents, businesses, and the movement of goods throughout Northern California.
SMART experienced record ridership during the spring and early summer of 2026, driven in part by increased weekend travel and tourism. Expanded train service, the opening of the Windsor station, and growing recreational travel contributed to strong passenger growth, highlighting SMART's increasing role in connecting Sonoma County residents and visitors while supporting local businesses and the regional tourism economy. Press Democrat Article
During the second quarter of 2026 (April–June), Sonoma County Transit maintained consistent service levels and continued to provide high-quality transit data through the General Transit Feed Specification (GTFS) and GTFS-Realtime. Throughout the quarter, the system operated 26 routes serving 1,018 transit stops, with stable weekday and weekend service hours and real-time trip updates available to support accurate rider information through trip-planning applications such as Google Maps and Apple Maps. The reports indicate consistent transit operations with only minor month-to-month schedule adjustments and continued compliance with California Transit Data Guidelines. Source: CAL ITP
P E R M A N E N T P U B L I C A R T C O L L E C T I O N G I S M A P C O M P L E T E D
A R T S , C U L T U R E , & E V E N T S
24 During the second quarter, the Arts & Culture Program completed a comprehensive GIS-based interactive map of the City of Santa Rosa's Permanent Public Art Collection. The project includes updated photography and location information for artworks throughout the city, providing residents and visitors with an engaging way to discover and explore Santa Rosa's public art.
The interactive map enhances public access to the City's collection by allowing users to search for artworks, view photographs, learn about artists and artwork details, and navigate to installation locations. This new digital resource supports the City's goals of increasing accessibility, promoting cultural tourism, celebrating Santa Rosa's artistic assets, and improving stewardship of the public art collection.
Photography by Tom Rivas
A R T S , C U L T U R E , & E V E N T S
25 C A L I F O R N I A A R T S C O U N C I L S U M M I T A P R I L 2 0 , 2 0 2 6 I n A p r i l , t h e A r t s & C u l t u r e M a n a g e r a n d A r t s a n d E v e n t s S p e c i a l i s t a t t e n d e d t h e 4 T H A n n u a l C a l i f o r n i a A r t s a n d C u l t u r e S u m m i t , b r i n g i n g t o g e t h e r a r t s l e a d e r s , p o l i c y m a k e r s , e d u c a t o r s , a n d l o c a l g o v e r n m e n t r e p r e s e n t a t i v e s f r o m a c r o s s C a l i f o r n i a t o d i s c u s s t h e f u t u r e o f t h e a r t s a n d t h e i r r o l e i n s t r e n g t h e n i n g c o m m u n i t i e s .
K e y s e s s i o n s f o c u s e d o n t h e S t a t e o f t h e A r t s i n C a l i f o r n i a , a r t s a n d c l i m a t e c h a n g e , a r t s e d u c a t i o n , a n d s t a t e a r t s p o l i c y . D i s c u s s i o n s e x p l o r e d t h e e c o n o m i c a n d s o c i a l v a l u e o f t h e a r t s , s t r a t e g i e s f o r b u i l d i n g r e s i l i e n t c u l t u r a l p r o g r a m s i n r e s p o n s e t o c l i m a t e i m p a c t s , e x p a n d i n g a c c e s s t o a r t s e d u c a t i o n , a n d s t a t e w i d e p o l i c y i n i t i a t i v e s t h a t s u p p o r t a r t i s t s , c u l t u r a l o r g a n i z a t i o n s , a n d c r e a t i v e e c o n o m i e s .
F I L M S A N T A R O S A
Film Permits completed:
Honda Commercial
Toyo Tires Commercial
Silence we Flee, Film
FUDGE Magazine, photo shoot
Redwood Credit Union Commercial
FILM Santa Rosa placed a half page advertisement in the California Film Commission's Location Magazine. The feature also showcased the Astro Hotel as a recommended filming location, increasing statewide visibility for Santa Rosa's film assets and supporting efforts to attract film and television productions to the community.
Facebook April – June
Top posted content: Live at Juilliard Bands announced, online public art map released
S O C I A L M E D I A - S R A R T S & C U L T U R E
A R T S , C U L T U R E , & E V E N T S
26 W E B S I T E A N A L Y T I C S
FILM Santa Rosa has continued to see a
strong growth of online engagement, with
website visitors doubling from last quarter.
We continue to work on our outreach,
advertising, and marketing to key
production corridors.
A R T S , C U L T U R E , & E V E N T S
27 S P E C I A L E V E N T S
Increased activity in Courthouse
Square (CHS) events during the
second quarter resulted in a
significant increase in visitor
traffic. CHS recorded 51,300 visits
in Q2, compared with 11,200 visits
in Q1, representing a more than
fourfold increase. The number of
unique visitors also grew
substantially, rising from 9,100 in
Q1 to 39,400 in Q2. This growth
reflects the return of seasonal
programming and increased
attendance at events held in
Courthouse Square.
The Arts & Culture homepage recorded 785 users, 1,361 views, and 4,551 events between April and June 2026, while a slight decrease in users, the increased views and event count reflect growth in online interaction with programs, events, and resources.
W E B S I T E A N A L Y T I C S
A R T S , C U L T U R E , & E V E N T S
28 19 Special Event permits processed:
During the quarter, 19 Special Event permits were processed, supporting a diverse range of community events including Tree Party, Black Joy Festival, SoCo Market, Earthly Procession, Cinco de Mayo, Classic Car Display, Pride, Wednesday Night Market, and others. These events contributed to increased community engagement and activation throughout Santa Rosa.
To improve customer service and streamline the permitting process, Block Party permit applications are now available online through Accela, making it easier for residents to apply and track their permits electronically.
During the quarter, 10 Block Party permits were processed, reflecting continued neighborhood participation and community activation.
S P E C I A L E V E N T S C O N T I N U E D
A R T M A I N T E N A N C E – P R I N C E M E M O R I A L G R E E N W A Y The City continues to invest in the long-term care and preservation of its public art collection. Through a maintenance agreement with Artstart, murals and mosaics along the Prince Memorial Greenway have received repairs and protective anti-graffiti coatings to assist with clean up of any future damage. This work protects the City’s investment and ensures these artworks remain vibrant, welcoming, and accessible to the community.
BUSINESS SUPPORT
29 B U S I N E S S C O N C I E R G E P R O G R A M
Launching, relocating, or expanding a business can be a daunting process for small businesses, entrepreneurs, and even experienced professionals. The City of Santa Rosa Business Concierge Program provides business owners with the expertise and support they need to succeed. Administered by the Small Business Ombudsman and overseen by the Chief Economic Development Officer and the Planning and Economic Development Director, this program offers assistance in areas such as location selection, business planning, technical support, securing financing, obtaining the necessary permits and licenses to open your doors, and facilitating the resolution of any issues that arise during the construction process. More information: srcity.org/starting-a-business You can view a report of the success of the first six months of the program online here: srcity.org/Initiatives#EconDev
O N E S T O P S H O P & B U S I N E S S L O U N G E What is the One-Stop Shop?
The One-Stop Shop Business Center serves as a resource hub where local businesses and entrepreneurs can schedule time with advisors, consultants, or city staff. Whether seeking financing options, navigating permitting and licensing, or receiving technical assistance with planning, this space is designed to provide hands-on business support in a comfortable, welcoming setting.
You can now schedule in person appointments with our Small Business Ombudsman online at srcity.org/EconDevBCP
A complementary online business portal will also feature:
Key performance indicators and econometric data on Santa Rosa’s economy Virtual tools and resources for new and expanding businesses Guides to city services and business development opportunities
A Welcoming Space for Businesses & Community
Designed in a work café style, the new space features lounge seating and tables to foster collaboration and conversation. To enhance the atmosphere, the space includes plants—creating a healthier, oxygenated environment— and a rotating digital and physical display of public art from the city’s collection.
Located at City Hall, 100 Santa Rosa Avenue, Room 6, By Appointment Only.
S O U R C E S & D I S C L A I M E R
30 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
Italicized interpretation provided by Dr. Robert Eyler, Economist of Sonoma State University
R E S O U R C E S
D I S C L A I M E R
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.
B I O G R A P H Y O F D R . E Y L E R
Dr. Robert Eyler is President of Economic Forensics and Analytics, specializing in public policy analysis for firms and governments. He is also Professor of Economics at Sonoma State University. He earned a Ph.D. from the University of California, Davis and a B.A. in Economics at CSU, Chico. Robert has been a visiting scholar at both the University of Bologna and Stanford University. He is often called up by the media for his expertise, provides economic impact analyses for both private firms and public entities to help guide public policy, and acts as an expert witness and forensic economist mainly for wine industry clients. Dr. Eyler has worked extensively with dozens of private-sector clients, cities, counties, statewide, and national organizations on economic and workforce development.