Bank Failures! – 2023 Q1 Review

As if high and still climbing interest rates were not enough, the first quarter of 2023 saw two of the 30 largest U.S. banks collapse within a 72-hour window, sending shivers up investors’ spines and prompting historic action by the feds to stabilize the financial system. This has caused remaining solvent banks to further tighten their underwriting and lending practices.  The effect of all this has been to make real estate transactions tougher to complete thereby prolonging slumping sales and transaction volumes nationally and locally.

Regional banks (ie. those with assets under $250B) provide roughly 80% of U.S. commercial real estate financing. In a small tertiary market like Nevada County smaller regional banks also dominate commercial lending. The effects of high interest rates and the fallout from the Silicon Valley and Signature bank failures are the logical culprits for the low first quarter transaction and sales volume.

As of this writing the extent of the bank failure contagion remains to be seen. Fortunately, Nevada County is not overbuilt, as demonstrated by the 5% overall vacancy rate, which should provide for a less volatile market than perhaps many areas in the U.S.  As always, opportunities are out there if one knows where to look and what to look for.

LocationSq. Ft.PricePrice/SF
12481 Charles Dr, Grass Valley34,950$4,785,000$136.91
972 Golden Gate Ter, Grass Valley4,864$799,000$164.27
12507 Loma Rica Dr, Grass Valley1,332$140,000$105.11
174-178 Lower Grass Valley Rd, Nevada City8,590$1,249,000$145.40
258 Railroad Ave, Grass Valley1,824$479,900$263.10
371 Railroad Ave, Grass Valley3,740$650,000$173.80
211 School St, Grass Valley2,200$250,000$113.64
110 Spring Hill Dr # 3 & 4, Grass Valley3,952$605,000$153.09
110 Spring HIll Dr # 1 & 2, Grass Valley5,500$795,000$144.55
2344 & 2352 Nevada City Hwy, Grass Valley3,212$600,000$186.80
10015 Alta Sierra Dr, Grass Valley4,176$699,000$167.39
512 - 528 Brunswick Rd, Grass Valley6,164$825,000$161.42
563 Brunswick Rd # 2, Grass Valley1,151$199,000$172.89
565 Brunswick Rd # 15, Grass Valley1,554$299,000$192.41
11235 Cliffs Place, Grass Valley1,501$429,900$286.41
424 Crown Point Cir, Grass Valley16,000$3,050,000$190.62
964 Golden Gate Ter, Grass Valley5,740$749,000$130.49
224 Main St, Nevada City4,670$1,225,000$262.31
900 E Main St, Grass Valley23,137$3,395,000$146.73
2611 Nevada City Hwy, Grass Valley2,172$580,000$267.03
104 New Mohawk Rd, Nevada City26,336$2,200,000$83.54
819 Whispering Pines Ln, Grass Valley24,426$3,100,000$135.10
402 S Auburn St, Grass Valley2,880$650,000$225.69
509 S Auburn St, Grass Valley1,429$475,000$332.40
1061 E Main St # 104, Grass Valley1,813$265,000$146.17
700 Zion St, Nevada City12,000$2,700,000$225.00
800 S Auburn St, Grass Valley9,600$1,900,000$197.92
210 Broad St, Nevada City21,675$2,250,000$103.81
214 Broad St, Nevada City1,684$835,000$495.84
315 Broad St, Nevada City4,979$1,350,000$271.14
423 Broad St, Nevada City904$365,000$403.76
202 Colfax Ave, Grass Valley1,492$495,000$331.77
163 Mill St, Grass Valley12,600$2,450,000$194.44

Location Sq. Ft.Min Base Price/SFMax Base Price/SF
12048 - 12050 Charles Dr, Grass Valley1,500$1.00$1.00
416 Crown Point Cir, Grass Valley22,922$0.81$0.81
972 Golden Gate Ter, Grass Valley2,536$1.14$1.14
12836 Greenhorn Rd, Grass Valley6,578$1.25$1.25
155 Spring Hill Dr # 201, Grass Valley2,777$0.54$0.54
375 Brunswick Rd, Grass Valley5,798$1.28$1.28
512 - 528 Brunswick Rd, Grass Valley800$1.39$1.39
505 Coyote St, Nevada City6,749$1.65$1.65
333 Crown Point Cir, Grass Valley5,444$1.55$1.55
345 Crown Point Cir, Grass Valley7,071$0.92$0.92
350 Crown Point Cir, Grass Valley5,089$1.55$1.55
355 Crown Point Cir, Grass Valley4,800$0.60$0.60
360 Crown Point Cir, Grass Valley8,629$1.49$1.49
431 Crown Point Cir, Grass Valley7,900$0.85$0.85
443 Crown Point Cir, Grass Valley15,264$1.25
149 Crown Point Ct, Grass Valley1,161$1.50$1.50
962 Golden Gate Ter, Grass Valley6,206$0.85$0.85
964 Golden Gate Ter, Grass Valley1,800$1.25$1.25
13100 Grass Valley & 12438 Loma Rica, Grass Valley4,960$0.69$0.69
200 Litton Dr, Grass Valley1,570$1.40$1.40
12190 Loma Rica Drive, Grass Valley2,600$1.10$1.10
224 Main St, Nevada City775$2.11$2.90
1740 - 1744 E Main St, Grass Valley2,728$2.25$2.25
900 E Main St, Grass Valley5,900$1.84$1.90
749 Maltman Dr, Grass Valley1,288$1.00$1.00
944 - 1020 McCourtney Rd, Grass Valley12,662$1.73$1.73
138 New Mohawk Rd, Nevada City8,700$1.95$1.95
101 - 106 Providence Mine Rd, Nevada City5,209$1.60$1.60
200 - 208 Providence Mine Rd, Nevada City20,382$1.60$1.60
310 Providence Mine Rd, Nevada City20,282$1.75$1.85
351 - 356 Providence Mine Rd, Nevada City1,736$1.78$1.78
400 Providence Mine Rd, Nevada City72,110$1.15$2.15
360 Sierra College Dr, Grass Valley803$2.17$2.17
420 Sierra College Dr, Grass Valley1,750$2.20$2.20
1012 Sutton Way, Grass Valley3,200$1.87$1.87
426 Sutton Way, Grass Valley850$1.63$1.63
841 - 857 Sutton Way, Grass Valley601$1.75$1.75
563 Brunswick Rd # 5, Grass Valley1,473$1.15$1.15
140 Litton Dr, Grass Valley3,378$1.96$2.26
300 Sierra College Dr #250, Grass Valley1,740$2.98$2.98
700 Zion St, Nevada City10,300$1.36
114 Argall Way, Nevada City1,159$1.21$1.21
133 Argall Way, Nevada City2,700$1.25$1.25
452 S Auburn St, Grass Valley1,150$1.83$1.83
408 Broad St & 405 Commercial Street, Nevada City1,200$2.08$2.08
650 Freeman Ln, Grass Valley9,214$1.95$2.20
840 E Main St, Grass Valley17,260$1.60$2.85
111 W McKnight Way, Grass Valley8,183$1.50$2.15
2032 - 2118 Nevada City Hwy, Grass Valley1,950$1.56$1.56
984 Plaza Dr, Grass Valley2,809$1.25$1.25
399-471 Sutton Way, Grass Valley1,402$1.45$1.45
526-720 Sutton Way, Grass Valley2,250$2.85$2.85
102 - 108 Union St, Nevada City1,843$2.00

LocationSq. Ft.Sale/LeaseClose Date
1061 E Main St # 103, Grass Valley1,224Sale1/6/2023
431 Crown Point Cir, Grass Valley3,200Lease1/9/2023
944 - 1020 McCourtney Rd, Grass Valley2,188Lease2/6/2023
131 S Auburn St, Grass Valley1,066Lease2/13/2023
16282 Mount Olive Rd, Grass Valley5,655Sale2/14/2023
125 Crown Point Ct, Grass Valley41,604Sale3/3/2023

Subscribe to Commercial Property Review

Commercial Property Review sample

Stay on top of the market. Get breaking news and data for the Nevada County commercial real estate market as soon as it's published. These FREE quarterly reports detail local commercial lease rates, vacancies, sales prices & volume, recent transactions and more!

Subscribe Now