A Fortune 500 company is consolidating its regional office in Sacramento's central city.

Although moving only two blocks, AECOM's choice to remain here and bring more workers to the city's core is cause for some celebration after many regional and divisional offices shrunk in the last two years, local business leaders said.

"This is an indication that we're heading in the right direction," said Michael Ault, executive director of the Downtown Sacramento Partnership.

AECOM, headquartered in Los Angeles, merged with the environmental, planning and design firm EDAW in 2006. AECOM added construction, engineering, architecture and high-level project management, as well as a global force of 45,000, to the mix.

The regional office was rebranded in November. Now AECOM has decided to consolidate three local offices, creating its main Sacramento office at a new location at 2020 L St. The building recently got a new lobby, bathrooms and elevators. Refurbishment is also under way on the exterior.

AECOM considered buildings in Midtown, East Sacramento and other areas, including Natomas. The company picked the new Midtown site at a mostly vacant building to practice sustainability and to benefit clients and staff, said Steve Heipel, Sacramento office principal.

"The location provides better opportunities for employees to get to work on foot, by bicycle, or public transportation; is conveniently located relative to many of our local clients; and is close to many amenities, such as restaurants," he said. "The recent redevelopment activities in the vicinity, including refurbishment of the 2020 L St. facility, helped assure us that the Midtown location was a good long-term choice."

About 50 people working at offices in Campus Commons and Gold River will join about 115 employees who will move from EDAW's longtime location at 2022 J St.

While cities like Sacramento are working to attract national companies, the recruitment of regional and divisional offices — as well as their retainment and expansion — is also vital to the city's economic growth, and more likely at this stage and in this economy, said Matt Mahood, president and CEO of the Sacramento Metro Chamber.

"It would be great if, every year, we could recruit a Fortune 100 or 500 or 1,000 company. The odds of that happening are very slim," he said. "And we would be competing with virtually every other mature metropolitan area in the country."

The growth of businesses like AECOM is critical so the region can catch up to all the housing and retail that already exists here. Housing construction alone clearly can't support the economy or the development of more amenities such as restaurants, culture and entertainment currently being discussed, Ault said.

"It's a good indication when you see a business like that, that clearly has options outside the core, that they're choosing to stay in the central city," Ault said. "We have heard very clearly from employers that are looking at siting facilities within the downtown core — one of the benefits is being close to the amenities and providing a better life for their employees."

As a large national company, AECOM's decision shows confidence in the region's bounce-back ability and the company's prospects for growth here, Mahood added.

"Sacramento's economy has taken a beating in the last two years," he said. "But we are positioning ourselves for recovery."

Suzanne Hurt is a staff reporter covering business and development for The Sacramento Press.