“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, and are 7-8 percent here. Investors looking for higher returns will start to look in our area — there’s more value, more upside. It could improve the future of the commercial industry.”
For more information, please view The Union‘s recent article on Western Nevada County’s current commercial real estate market: Eye on the Economy
