American AgCredit signs lease deal with Sonoma County
American AgCredit is leaving its office building on Aviation Boulevard almost a decade after it was built, having officially signed a lease agreement with Sonoma County.
The lender, which moved into 400 Aviation Blvd. in 2016 at a construction cost of $68.5 million, needs less space now that it is managing its operation as a combination remote, hybrid and in-office workforce in Santa Rosa and New Mexico, after announcing it was merging two years ago with Farm Credit of New Mexico. It has offices and employees located in more than 40 states.
“We’re moving because we no longer need a space of that size,” American AgCredit spokesman Chris Carter said, reflecting an ongoing trend among many U.S. businesses since the pandemic started in early 2020. “Like many organizations throughout the last several years, American AgCredit is re-envisioning our ways of working to be more digital than ever before.”
He listed everyday routines in which employees “may need to meet with customers on their farm or operation.” Staff has also used virtual and telecom technology for meetings and discussions. American AgCredit has 920 employees, 140 of whom are based in Santa Rosa.
The farm lender and Sonoma County finalized their seven-year leasing partnership in late February. The terms include $160,679 in monthly rent, and the county government will pay $1 million to move about 180 employees into the new space.
The list of agencies affected has not been finalized but could include the Regional Parks and Public Infrastructure departments.
The agreement also includes equipment and an option to buy the entire 121,775-square-foot building on 7.65 acres for $56.1 million from American AgCredit.
The two parties view the deal as a win-win — with a three-member majority of the supervisors granting initial approval Jan. 30.
“The opportunity came up, and we jumped at it,” Supervisor David Rabbitt said.
“We’re thrilled to have the county go there,” said Mike Williams, spokesman for Basin Street Properties, which owns a neighboring building at 463 Aviation Blvd., which the county recently leased. “They’re a good tenant.”
Williams said he’s not surprised the county is attracted to the Aviation Boulevard area.
“Part of the allure is you’re right there at the airport. It’s a nice space, and downtown (Santa Rosa) has had its struggles,” he said, comparing the growth north with the center of the county.
Sonoma County is trying to shift out of aging, deteriorating structures on the Administration Drive campus in Santa Rosa. Employees may move from the Administration and County Center drive locations.
According to a year-old study from the Pew Research Center, about a third of workers (35%) with jobs that may be done remotely are working from home all the time. A hybrid schedule dominates, with 63% splitting the workdays at the office and home.
Susan Wood covers law, cannabis, production, tech, agriculture as well as banking and finance. She can be reached at 530-545-8662 or susan.wood@busjrnl.com
