Market Insight

Lock Richards' Insight on the Commercial Real Estate Scene

Unprecendented Times – 2020 Q2 Review

This quarter the pandemic continued its torment on the nation and the world. Shutdowns were extended as the populace struggled at coming to terms with the newly restricted environment and the effects it will have on the economy, businesses and jobs.  Fortunately, congress acted quickly and implemented the CARES Act, providing a massive financial relief …

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The New “Coronaverse” – 2020 Q1 Review

This quarter we were hit by an unprecedented (in modern times) pandemic. Economic shutdowns and self-quarantine regulations were instituted globally and California took an early and firm lead in such restrictions.  During the last month of this quarter economic activity came to a standstill. Most real estate transactions then underway either fell out completely or …

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2019 Market Summary – 2019 Q4 Review

Overall, 2019 was a good year for commercial/investment property owners in Western Nevada County. In all three commercial property sectors – industrial, retail and office – the Grass Valley and Nevada City areas saw year-over-year increases in asking rents partnered with decreasing vacancy rates, resulting in higher values and increasing sale prices.  Interestingly, however, the …

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Buying Land? Due Diligence is Key

Whether you are considering buying land for commercial or residential development, pre-closing due diligence is crucial for a successful project. First, investigate the property’s zoning. Read and understand the formal city or county zoning ordinance. Is your desired development a principally permitted use; a use requiring some type of conditional use permit (and generally an …

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Office Focus – Open Floorplans? – 2019 Q3 Review

Open office floorplans have become trendy over the past several years. Driven by the tech industry and other “new economy” sectors, such layouts were developed to enhance worker collaboration, creativity and job satisfaction, with the ultimate goal of improving worker productivity – all while reducing real estate occupancy costs. With such lofty ideals attributed to …

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Landlords vs Tenants – 2019 Q2 Review

Whether you are a business owner renting office, industrial or retail space; or a landlord or investor considering buying commercial real estate, keeping tabs on market trends can help shed light on the strengths and/or weaknesses of your opponent’s hand and assist with decision-making that will likely have significant and long term financial implications. Market …

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The Boomer/Millennial Effect – 2019 Q1 Review

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 …

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“Industrial” 2018’s Shining Star – 2018 Q4 Review

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 …

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What’s Trending in Commercial Real Estate – 2018 Q3 Review

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 …

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Projecting the Economic Cycle – 2018 Q2 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 …

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