Where to Buy Office Buildings for High ROI in California
- Nate Jones, CPCU, ARM, CLCS, AU
- Oct 20
- 2 min read
Despite economic shifts and remote work trends, California continues to offer strong opportunities for office building investments. With a diverse economy, global business hubs, and a steady influx of international talent, the Golden State remains attractive for investors seeking long-term returns.
Office properties in California are evolving—smaller footprints, flexible layouts, and tech-enabled spaces are in demand. Investors who adapt to these trends can unlock high ROI in select markets.
Top California Cities for High-ROI Office Building Investments
1. Los Angeles
Los Angeles remains the priciest and most active office market in California, with properties trading at $345 per square foot.
Why Invest: Diverse industries (entertainment, tech, fashion), strong tenant demand, and premium lease rates.
Hotspots: Downtown LA, West LA, Santa Monica, Glendale
Insurance Tip: Wexford Insurance offers tailored coverage for high-value urban office buildings.
2. San Diego
San Diego’s coastal location and biotech boom make it a rising star in office investments. Properties average $196 per square foot, offering affordability with growth potential.
Why Invest: Strong demand from healthcare, defense, and tech sectors.
Hotspots: Mission Valley, UTC, North Park
Insurance Tip: Protect against coastal risks with Wexford’s comprehensive property coverage.
3. The Bay Area (San Jose, Oakland, East Bay)
The Bay Area leads California in office transaction volume, with $1.8 billion in sales and an average price of $278 per square foot.
Why Invest: Home to Silicon Valley, consistent demand for Class A and flex office space.
Hotspots: San Jose, Fremont, Walnut Creek
Insurance Tip: Cyber liability and business interruption coverage are essential for tech-heavy tenants.
4. Sacramento
Sacramento offers affordability and stability, making it ideal for investors seeking steady returns.
Why Invest: Government and healthcare sectors drive consistent demand.
Hotspots: Midtown, Downtown, Elk Grove
Insurance Tip: Bundle multiple office properties under one policy with Wexford Insurance.
5. Irvine
Irvine is a corporate and tech hub in Southern California with average lease rates around $3.60 per sq. ft.
Why Invest: Low vacancy rates and strong tenant retention.
Hotspots: Spectrum District, Airport Area
Insurance Tip: Wexford offers scalable coverage for multi-tenant office buildings.
Final Thoughts
California’s office market is evolving, but opportunity abounds for investors who know where to look. Cities like Los Angeles, San Diego, and the Bay Area offer high ROI potential, especially for properties that meet modern tenant needs. As you grow your portfolio, Wexford Insurance is here to protect your investment with customized commercial property insurance solutions. Contact now!
FAQs
1. What makes California ideal for office building investments?
California’s diverse economy, global business hubs, and tenant demand make it a top market for office properties.
2. Are smaller office spaces more profitable post-pandemic?
Yes. Flexible, tech-enabled spaces are in high demand and often yield better occupancy and lease rates.
3. How can I protect my office building investment?
Partner with Wexford Insurance for coverage including property damage, liability, and business interruption.
