The industrial real estate market in Western Nevada County (namely Grass Valley and Nevada City) is tighter than it has ever been in my 25 years of real estate work here. Our industrial vacancy rate now sits at less than 1.5% and rents are steadily increasing. The pandemic has led to a greatly increased money supply creating huge increases in e-commerce and related manufacturing, warehousing and distribution needs, all of which require industrial space. Even Amazon has established a relatively large distribution warehouse in Grass Valley, and sub- $100/sf light industrial values have now grown to a median price of over $130/sf.
I predict values and rents will continue to increase until such time as: 1) new supply comes on line; 2) a large user outgrows the area and leaves town; or 3) a major recession sets in. While adding new supply is the only positive of the three, it is also the most unlikely to occur due to the fact that the market has run out of properly zoned land for industrial construction. The City of Grass Valley has available land (for example in the Whispering Pines Business Park), that could and should be re-zoned to light industrial, but they have thus far not proactively pursued this. Unfortunately, this will increase the odds of items 2) and 3) above occurring.
| AVAILABLE FOR SALE - Q1 2022 | |||
|---|---|---|---|
| Location | Sq. Ft. | Price | Price/SF |
| Industrial | |||
| 12481 Charles Dr, Grass Valley | 35,000 | $4,250,000 | $121.43 |
| 174-178 Lower Grass Valley Rd, Nevada City | 8,590 | $1,249,000 | $145.40 |
| Office | |||
| 512 - 528 Brunswick Rd, Grass Valley | 6,164 | $1,250,000 | $202.79 |
| 563 Brunswick Rd # 2, Grass Valley | 1,151 | $210,000 | $182.45 |
| 565 Brunswick Rd # 9, Grass Valley | 1,387 | $179,000 | $129.06 |
| 230 Colfax Ave, Grass Valley | 4,084 | $725,000 | $177.52 |
| 964 Golden Gate Ter, Grass Valley | 5,740 | $795,000 | $138.50 |
| 308 Main St, Nevada City | 2,529 | $750,000 | $296.56 |
| 401 - 403 E Main St, Grass Valley | 5,848 | $599,000 | $102.43 |
| 900 E Main St, Grass Valley | 23,137 | $3,690,000 | $159.90 |
| 400 Providence Mine Rd, Nevada City | 72,110 | $7,200,000 | $99.85 |
| 1415 Whispering Pines Ln, Grass Valley | 16,000 | $2,828,000 | $176.75 |
| Medical/Dental | |||
| 563 Brunswick Rd # 10, Grass Valley | 1,463 | $214,000 | $146.27 |
| 1061 E Main St # 103, Grass Valley | 1,224 | $199,000 | $162.58 |
| 300 Sierra College Dr #165, Grass Valley | 4,787 | $1,900,000 | $329.64 |
| Retail | |||
| 107 Bank St, Grass Valley | 4,247 | $829,000 | $195.20 |
| 210 Broad St, Nevada City | 21,675 | $2,250,000 | $103.81 |
| 315 Broad St, Nevada City | 4,979 | $1,350,000 | $271.14 |
| 426 Broad St, Nevada City | 1,333 | $775,000 | $581.40 |
| 250 Colfax Ave, Grass Valley | 1,531 | $500,000 | $326.58 |
| 206 W Main St, Grass Valley | 3,950 | $750,000 | $189.87 |
| 633 - 653 Maltman Dr, Grass Valley | 8,595 | $1,099,000 | $127.87 |
| 102 - 108 Union St, Nevada City | 14,000 | $2,950,000 | $210.71 |
| AVAILABLE FOR LEASE Q1 2022 | ||||
|---|---|---|---|---|
| Location | Sq. Ft. | Min Base Price/SF | Max Base Price/SF | |
| Industrial | ||||
| 972 Golden Gate Ter, Grass Valley | 2,536 | $1.14 | $1.14 | |
| 545 - 569 Searls Ave, Nevada City | 9,917 | $3.00 | ||
| 155 Spring Hill Dr # 201, Grass Valley | 2,777 | $0.54 | $0.54 | |
| Office | ||||
| 10015 Alta Sierra Dr, Grass Valley | 830 | $1.31 | $1.33 | |
| 120 N Auburn St, Grass Valley | 950 | $1.47 | $1.47 | |
| 131 S Auburn St, Grass Valley | 1,066 | $1.50 | $1.50 | |
| 375 Brunswick Rd, Grass Valley | 5,798 | $1.28 | $1.28 | |
| 464-458 Brunswick Rd, Grass Valley | 6,116 | $1.60 | $2.05 | |
| 563 Brunswick Rd # 9, Grass Valley | 1,015 | $1.00 | $1.00 | |
| 333 Crown Point Cir, Grass Valley | 5,444 | $1.55 | $1.55 | |
| 350 Crown Point Cir, Grass Valley | 6,469 | $1.55 | $1.55 | |
| 355 Crown Point Cir, Grass Valley | 4,800 | $0.60 | $0.60 | |
| 360 Crown Point Cir, Grass Valley | 14,062 | $1.19 | $1.49 | |
| 431 Crown Point Cir, Grass Valley | 15,264 | $1.00 | $1.00 | |
| 488 Crown Point Cir, Grass Valley | 5,168 | $1.60 | $1.80 | |
| 962 Golden Gate Ter, Grass Valley | 6,206 | $0.85 | $0.85 | |
| 13100 Grass Valley, 12438 Loma Rica Dr, Grass Valley | 4,960 | $0.69 | $0.69 | |
| 175 Joerschke Dr, Grass Valley | 3,190 | $0.69 | $0.79 | |
| 200 Litton Dr, Grass Valley | 3,000 | $1.40 | $1.40 | |
| 12190 Loma Rica Drive, Grass Valley | 2,600 | $1.10 | $1.10 | |
| 900 E Main St, Grass Valley | 3,500 | $1.84 | $1.90 | |
| 111 Margaret Lane, Grass Valley | 2,679 | $1.08 | $1.08 | |
| 944 - 1020 McCourtney Rd, Grass Valley | 9,829 | $1.73 | $1.73 | |
| 101 - 106 Providence Mine Rd, Nevada City | 5,002 | $1.55 | $1.55 | |
| 200 - 208 Providence Mine Rd, Nevada City | 18,736 | $1.55 | $1.55 | |
| 310 Providence Mine Rd, Nevada City | 20,282 | $1.45 | $1.45 | |
| 351 - 356 Providence Mine Rd, Nevada City | 3,239 | $1.78 | $1.78 | |
| 400 Providence Mine Rd, Nevada City | 72,110 | $0.95 | $0.95 | |
| 120 Richardson St, Grass Valley | 271 | $2.21 | $2.21 | |
| 420 Sierra College Dr, Grass Valley | 1,750 | $2.20 | $2.20 | |
| 143 Spring Hill Dr Ste 1C, Grass Valley | 1,056 | $1.23 | $1.23 | |
| 1012 Sutton Way, Grass Valley | 3,200 | $1.87 | $1.87 | |
| 426 Sutton Way, Grass Valley | 2,324 | $1.45 | $1.45 | |
| 841 - 857 Sutton Way, Grass Valley | 601 | $1.75 | $1.75 | |
| 908 Taylorville Rd, Grass Valley | 1,800 | $1.66 | $1.66 | |
| Medical/Dental | ||||
| 563 Brunswick Rd # 5, Grass Valley | 1,473 | $1.55 | $1.55 | |
| 590 Searls Ave, Nevada City | 1,475 | $1.80 | $1.80 | |
| Retail | ||||
| 10052 Alta Sierra Dr, Grass Valley | 1,900 | $1.35 | $1.35 | |
| 114 Argall Way, Nevada City | 1,160 | $1.21 | $1.21 | |
| 133 Argall Way, Nevada City | 2,700 | $1.25 | $1.25 | |
| 408 Broad St & 405 Commercial Street, Nevada City | 1,100 | $2.26 | $2.26 | |
| 650 Freeman Ln, Grass Valley | 24,602 | $1.95 | $2.20 | |
| 840 E Main St, Grass Valley | 5,000 | $1.60 | $1.60 | |
| 138 E Main St & 131 Richardson St, Grass Valley | 2,190 | $1.01 | $1.01 | |
| 633 - 653 Maltman Dr, Grass Valley | 2,400 | $0.83 | $1.14 | |
| 671 Maltman Dr, Grass Valley | 1,660 | $1.20 | $1.20 | |
| 111 W McKnight Way, Grass Valley | 9,674 | $1.50 | $2.15 | |
| 117 Neal St, Grass Valley | 2,875 | $1.79 | $1.79 | |
| 2032 - 2118 Nevada City Hwy, Grass Valley | 2,925 | $1.56 | $1.76 | |
| 984 Plaza Dr, Grass Valley | 3,550 | $1.25 | $1.25 | |
| 345 Railroad Ave, Nevada City | 2,000 | $0.95 | $0.95 | |
| 399-471 Sutton Way, Grass Valley | 1,930 | $1.35 | $1.35 | |
| 526-720 Sutton Way, Grass Valley | 2,250 | $2.85 | $2.85 | |
| 860-870 Sutton Way, Grass Valley | 1,704 | $2.65 | $2.65 |
| RECENT TRANSACTIONS - Q1 2022 | |||
|---|---|---|---|
| Location | Sq. Ft. | Sale/Lease | Close Date |
| 305 Railroad Ave, Nevada City | 1,100 | Lease | 1/1/2022 |
| 351 - 356 Providence Mine Rd, Nevada City | 1,161 | Lease | 1/1/2022 |
| 571 Searls Ave, Nevada City | 1,286 | Lease | 1/1/2022 |
| 200 - 208 Providence Mine Rd, Nevada City | 718 | Lease | 1/1/2022 |
| 12297-12299 Loma Rica Dr, Grass Valley | 2,700 | Sale | 1/15/2022 |
| 217 W Main St, Grass Valley | 1,188 | Sale | 1/20/2022 |
| 12503 Loma Rica Dr, Grass Valley | 906 | Sale | 1/24/2022 |
| 12499 Loma Rica Dr, Grass Valley | 906 | Sale | 1/24/2022 |
| 1125-1165 Sutton Way, Grass Valley | 24,539 | Sale | 1/31/2022 |
| 131-139 Joerschke Dr, Grass Valley | 972 | Lease | 2/15/2022 |
| 124 Clydesdale Ct, Grass Valley | 24,000 | Sale | 2/17/2022 |
| 563 Brunswick Rd # 9, Grass Valley | 1,015 | Sale | 2/18/2022 |
| 425 Broad St, Nevada City | 840 | Sale | 2/18/2022 |
| 399-471 Sutton Way, Grass Valley | 2,285 | Lease | 3/1/2022 |
| 233 Broad St, Nevada City | 8,436 | Sale | 3/7/2022 |
| 101 W McKnight Way, Grass Valley | 9,150 | Sale | 3/31/2022 |
