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.
| AVAILABLE FOR SALE - Q1 2023 | |||
|---|---|---|---|
| Location | Sq. Ft. | Price | Price/SF |
| Industrial | |||
| 12481 Charles Dr, Grass Valley | 34,950 | $4,785,000 | $136.91 |
| 972 Golden Gate Ter, Grass Valley | 4,864 | $799,000 | $164.27 |
| 12507 Loma Rica Dr, Grass Valley | 1,332 | $140,000 | $105.11 |
| 174-178 Lower Grass Valley Rd, Nevada City | 8,590 | $1,249,000 | $145.40 |
| 258 Railroad Ave, Grass Valley | 1,824 | $479,900 | $263.10 |
| 371 Railroad Ave, Grass Valley | 3,740 | $650,000 | $173.80 |
| 211 School St, Grass Valley | 2,200 | $250,000 | $113.64 |
| 110 Spring Hill Dr # 3 & 4, Grass Valley | 3,952 | $605,000 | $153.09 |
| 110 Spring HIll Dr # 1 & 2, Grass Valley | 5,500 | $795,000 | $144.55 |
| Office | |||
| 2344 & 2352 Nevada City Hwy, Grass Valley | 3,212 | $600,000 | $186.80 |
| 10015 Alta Sierra Dr, Grass Valley | 4,176 | $699,000 | $167.39 |
| 512 - 528 Brunswick Rd, Grass Valley | 6,164 | $825,000 | $161.42 |
| 563 Brunswick Rd # 2, Grass Valley | 1,151 | $199,000 | $172.89 |
| 565 Brunswick Rd # 15, Grass Valley | 1,554 | $299,000 | $192.41 |
| 11235 Cliffs Place, Grass Valley | 1,501 | $429,900 | $286.41 |
| 424 Crown Point Cir, Grass Valley | 16,000 | $3,050,000 | $190.62 |
| 964 Golden Gate Ter, Grass Valley | 5,740 | $749,000 | $130.49 |
| 224 Main St, Nevada City | 4,670 | $1,225,000 | $262.31 |
| 900 E Main St, Grass Valley | 23,137 | $3,395,000 | $146.73 |
| 2611 Nevada City Hwy, Grass Valley | 2,172 | $580,000 | $267.03 |
| 104 New Mohawk Rd, Nevada City | 26,336 | $2,200,000 | $83.54 |
| 819 Whispering Pines Ln, Grass Valley | 24,426 | $3,100,000 | $135.10 |
| Medical/Dental | |||
| 402 S Auburn St, Grass Valley | 2,880 | $650,000 | $225.69 |
| 509 S Auburn St, Grass Valley | 1,429 | $475,000 | $332.40 |
| 1061 E Main St # 104, Grass Valley | 1,813 | $265,000 | $146.17 |
| 700 Zion St, Nevada City | 12,000 | $2,700,000 | $225.00 |
| Retail | |||
| 800 S Auburn St, Grass Valley | 9,600 | $1,900,000 | $197.92 |
| 210 Broad St, Nevada City | 21,675 | $2,250,000 | $103.81 |
| 214 Broad St, Nevada City | 1,684 | $835,000 | $495.84 |
| 315 Broad St, Nevada City | 4,979 | $1,350,000 | $271.14 |
| 423 Broad St, Nevada City | 904 | $365,000 | $403.76 |
| 202 Colfax Ave, Grass Valley | 1,492 | $495,000 | $331.77 |
| 163 Mill St, Grass Valley | 12,600 | $2,450,000 | $194.44 |
| AVAILABLE FOR LEASE Q1 2023 | ||||
|---|---|---|---|---|
| Location | Sq. Ft. | Min Base Price/SF | Max Base Price/SF | |
| Industrial | ||||
| 12048 - 12050 Charles Dr, Grass Valley | 1,500 | $1.00 | $1.00 | |
| 416 Crown Point Cir, Grass Valley | 22,922 | $0.81 | $0.81 | |
| 972 Golden Gate Ter, Grass Valley | 2,536 | $1.14 | $1.14 | |
| 12836 Greenhorn Rd, Grass Valley | 6,578 | $1.25 | $1.25 | |
| 155 Spring Hill Dr # 201, Grass Valley | 2,777 | $0.54 | $0.54 | |
| Office | ||||
| 375 Brunswick Rd, Grass Valley | 5,798 | $1.28 | $1.28 | |
| 512 - 528 Brunswick Rd, Grass Valley | 800 | $1.39 | $1.39 | |
| 505 Coyote St, Nevada City | 6,749 | $1.65 | $1.65 | |
| 333 Crown Point Cir, Grass Valley | 5,444 | $1.55 | $1.55 | |
| 345 Crown Point Cir, Grass Valley | 7,071 | $0.92 | $0.92 | |
| 350 Crown Point Cir, Grass Valley | 5,089 | $1.55 | $1.55 | |
| 355 Crown Point Cir, Grass Valley | 4,800 | $0.60 | $0.60 | |
| 360 Crown Point Cir, Grass Valley | 8,629 | $1.49 | $1.49 | |
| 431 Crown Point Cir, Grass Valley | 7,900 | $0.85 | $0.85 | |
| 443 Crown Point Cir, Grass Valley | 15,264 | $1.25 | ||
| 149 Crown Point Ct, Grass Valley | 1,161 | $1.50 | $1.50 | |
| 962 Golden Gate Ter, Grass Valley | 6,206 | $0.85 | $0.85 | |
| 964 Golden Gate Ter, Grass Valley | 1,800 | $1.25 | $1.25 | |
| 13100 Grass Valley & 12438 Loma Rica, Grass Valley | 4,960 | $0.69 | $0.69 | |
| 200 Litton Dr, Grass Valley | 1,570 | $1.40 | $1.40 | |
| 12190 Loma Rica Drive, Grass Valley | 2,600 | $1.10 | $1.10 | |
| 224 Main St, Nevada City | 775 | $2.11 | $2.90 | |
| 1740 - 1744 E Main St, Grass Valley | 2,728 | $2.25 | $2.25 | |
| 900 E Main St, Grass Valley | 5,900 | $1.84 | $1.90 | |
| 749 Maltman Dr, Grass Valley | 1,288 | $1.00 | $1.00 | |
| 944 - 1020 McCourtney Rd, Grass Valley | 12,662 | $1.73 | $1.73 | |
| 138 New Mohawk Rd, Nevada City | 8,700 | $1.95 | $1.95 | |
| 101 - 106 Providence Mine Rd, Nevada City | 5,209 | $1.60 | $1.60 | |
| 200 - 208 Providence Mine Rd, Nevada City | 20,382 | $1.60 | $1.60 | |
| 310 Providence Mine Rd, Nevada City | 20,282 | $1.75 | $1.85 | |
| 351 - 356 Providence Mine Rd, Nevada City | 1,736 | $1.78 | $1.78 | |
| 400 Providence Mine Rd, Nevada City | 72,110 | $1.15 | $2.15 | |
| 360 Sierra College Dr, Grass Valley | 803 | $2.17 | $2.17 | |
| 420 Sierra College Dr, Grass Valley | 1,750 | $2.20 | $2.20 | |
| 1012 Sutton Way, Grass Valley | 3,200 | $1.87 | $1.87 | |
| 426 Sutton Way, Grass Valley | 850 | $1.63 | $1.63 | |
| 841 - 857 Sutton Way, Grass Valley | 601 | $1.75 | $1.75 | |
| Medical/Dental | ||||
| 563 Brunswick Rd # 5, Grass Valley | 1,473 | $1.15 | $1.15 | |
| 140 Litton Dr, Grass Valley | 3,378 | $1.96 | $2.26 | |
| 300 Sierra College Dr #250, Grass Valley | 1,740 | $2.98 | $2.98 | |
| 700 Zion St, Nevada City | 10,300 | $1.36 | ||
| Retail | ||||
| 114 Argall Way, Nevada City | 1,159 | $1.21 | $1.21 | |
| 133 Argall Way, Nevada City | 2,700 | $1.25 | $1.25 | |
| 452 S Auburn St, Grass Valley | 1,150 | $1.83 | $1.83 | |
| 408 Broad St & 405 Commercial Street, Nevada City | 1,200 | $2.08 | $2.08 | |
| 650 Freeman Ln, Grass Valley | 9,214 | $1.95 | $2.20 | |
| 840 E Main St, Grass Valley | 17,260 | $1.60 | $2.85 | |
| 111 W McKnight Way, Grass Valley | 8,183 | $1.50 | $2.15 | |
| 2032 - 2118 Nevada City Hwy, Grass Valley | 1,950 | $1.56 | $1.56 | |
| 984 Plaza Dr, Grass Valley | 2,809 | $1.25 | $1.25 | |
| 399-471 Sutton Way, Grass Valley | 1,402 | $1.45 | $1.45 | |
| 526-720 Sutton Way, Grass Valley | 2,250 | $2.85 | $2.85 | |
| 102 - 108 Union St, Nevada City | 1,843 | $2.00 |
| RECENT TRANSACTIONS - Q1 2023 | |||
|---|---|---|---|
| Location | Sq. Ft. | Sale/Lease | Close Date |
| 1061 E Main St # 103, Grass Valley | 1,224 | Sale | 1/6/2023 |
| 431 Crown Point Cir, Grass Valley | 3,200 | Lease | 1/9/2023 |
| 944 - 1020 McCourtney Rd, Grass Valley | 2,188 | Lease | 2/6/2023 |
| 131 S Auburn St, Grass Valley | 1,066 | Lease | 2/13/2023 |
| 16282 Mount Olive Rd, Grass Valley | 5,655 | Sale | 2/14/2023 |
| 125 Crown Point Ct, Grass Valley | 41,604 | Sale | 3/3/2023 |
