We hear the US is now 10 years into an economic expansion and real estate recovery. However, the local Sierra Foothills economy, including Western Nevada County, has historically lagged economic indicators in the greater Bay Area and Sacramento regions, and this recent expansion appears no different. In fact, local trends seem to indicate that we …
Of the 3 product types tracked by this report (office / industrial / retail) the industrial sector was the big winner in 2018. The industrial vacancy rate remained below that of the office and retail segments at only approximately 2.3%, meaning the Grass Valley / Nevada City region ended the year with less than 50,000 …
Current trends in commercial real estate differ depending on the particular market segment – be it office, retail or industrial. As shown in the statistics below, our local office sector has been the slowest to recover from the Great Recession and currently remains the softest of the three property types. This is due primarily to …
Read moreWhat’s Trending in Commercial Real Estate – 2018 Q3 Review
America’s Gross Domestic Product (GDP) fell dramatically during the great recession hitting a deep hole in 2009; however, since that time GDP growth has generally been positive for the past 8 years. With the typical business cycle in America averaging about 5.5 years, is the length of the current expansion an indication that recession is …
If you are looking to sell, purchase or lease commercial real estate in Grass Valley or Nevada City in 2018, the following summary of market activity over the past year should be of interest. Generally speaking, the local market has been tightening, with rents and sale prices increasing even though transaction volume decreased year-over-year from …
A brief look back at President Trump’s first year in office shows mixed signals, especially here in the local Sierra Foothills region of California. Nationally, consumer confidence rose to a 17-year high, and the stock market, as represented by the Dow, set 70 record closes ending the year up 25%. Locally, regarding commercial real estate …
This quarter I wanted to highlight some interesting trends affecting commercial real estate (CRE) markets. While these trends stem from national metrics, they will ultimately affect our local markets and may offer valuable insight to investors, owner/users, developers and tenants who are considering acquisition, disposition, expansion or relocation decisions. Nationally, over the last eight quarters, …
“In our area, relative to Truckee, Sacramento and the Bay Area, the returns are higher by a couple hundred basis points (used to express differences in interest rates and other percentages in finance),” he said. “For example, cap rates (the ratio of net operating income to property value) are 5-6 percent in the Bay Area, …
At mid-year 2017, the nation seems to be enjoying what has been referred to as a “Goldilocks” commercial real estate market. In the children’s fairy tale, Goldilocks finds the perfect bowl of porridge – not too hot, not too cold, but just right. We currently have roaring stock values, growing GDP, minimal unemployment, rising disposable …
Nevada County’s commercial real estate market in first quarter 2017 seemed to parallel our new President’s first 100 days in office, in more ways than just time. Upon Trump taking office, the private sector/business community’s hopes and expectations for an improving economic climate increased, as demonstrated by the run-up of the stock market. At the …