More Mixed Signals
On one hand, I am happy to report that our phones have been ringing “off-the-hook” as the third quarter of 2014 comes to a close. To summarize the commercial real estate activity-Q3 2014, total transaction volume is continuing to climb, which signifies a warming and healthier market. On the other hand, lease rates and sale prices remain relatively flat for the most part, with retail space being the one exception.
It is difficult to get a good read on sale price trends due to the diversity of product in the area combined with relatively few sales occurring in each sector. However, it is still apparent that prices in Western Nevada County remain well below their pre-recession highs.
Vacancy rates remain relatively flat as well; however, office vacancy is starting to show a slight decline. A primary contributor to this trend is the growth of government jobs. With an improving economy and rising home values, property tax receipts are growing, and of course with more money comes more spending and more government jobs. The EDD reports an increase of 600 government jobs in Nevada County in August! Unfortunately, this is contrasted by a year-to-date job loss of 6.1% in leisure and hospitality, and a 12.5% drop in manufacturing jobs. These are not the most healthy of trends.
Whether you are looking to lease property locally, or buy or sell near or far, please call us. We will strive to help you realize your goals and achieve peace of mind with respect to your commercial real estate investments.
