Industrial-Today’s Darling – 2022 Q1 Review

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   
LocationSq. Ft.PricePrice/SF
Industrial
12481 Charles Dr, Grass Valley35,000$4,250,000$121.43
174-178 Lower Grass Valley Rd, Nevada City8,590$1,249,000$145.40
Office
512 - 528 Brunswick Rd, Grass Valley6,164$1,250,000$202.79
563 Brunswick Rd # 2, Grass Valley1,151$210,000$182.45
565 Brunswick Rd # 9, Grass Valley1,387$179,000$129.06
230 Colfax Ave, Grass Valley4,084$725,000$177.52
964 Golden Gate Ter, Grass Valley5,740$795,000$138.50
308 Main St, Nevada City2,529$750,000$296.56
401 - 403 E Main St, Grass Valley5,848$599,000$102.43
900 E Main St, Grass Valley23,137$3,690,000$159.90
400 Providence Mine Rd, Nevada City72,110$7,200,000$99.85
1415 Whispering Pines Ln, Grass Valley16,000$2,828,000$176.75
Medical/Dental
563 Brunswick Rd # 10, Grass Valley1,463$214,000$146.27
1061 E Main St # 103, Grass Valley1,224$199,000$162.58
300 Sierra College Dr #165, Grass Valley4,787$1,900,000$329.64
Retail
107 Bank St, Grass Valley4,247$829,000$195.20
210 Broad St, Nevada City21,675$2,250,000$103.81
315 Broad St, Nevada City4,979$1,350,000$271.14
426 Broad St, Nevada City1,333$775,000$581.40
250 Colfax Ave, Grass Valley1,531$500,000$326.58
206 W Main St, Grass Valley3,950$750,000$189.87
633 - 653 Maltman Dr, Grass Valley8,595$1,099,000$127.87
102 - 108 Union St, Nevada City14,000$2,950,000$210.71

AVAILABLE FOR LEASE Q1 2022    
LocationSq. Ft.Min Base Price/SFMax Base Price/SF
Industrial
972 Golden Gate Ter, Grass Valley2,536$1.14$1.14
545 - 569 Searls Ave, Nevada City9,917$3.00
155 Spring Hill Dr # 201, Grass Valley2,777$0.54$0.54
Office
10015 Alta Sierra Dr, Grass Valley830$1.31$1.33
120 N Auburn St, Grass Valley950$1.47$1.47
131 S Auburn St, Grass Valley1,066$1.50$1.50
375 Brunswick Rd, Grass Valley5,798$1.28$1.28
464-458 Brunswick Rd, Grass Valley6,116$1.60$2.05
563 Brunswick Rd # 9, Grass Valley1,015$1.00$1.00
333 Crown Point Cir, Grass Valley5,444$1.55$1.55
350 Crown Point Cir, Grass Valley6,469$1.55$1.55
355 Crown Point Cir, Grass Valley4,800$0.60$0.60
360 Crown Point Cir, Grass Valley14,062$1.19$1.49
431 Crown Point Cir, Grass Valley15,264$1.00$1.00
488 Crown Point Cir, Grass Valley5,168$1.60$1.80
962 Golden Gate Ter, Grass Valley6,206$0.85$0.85
13100 Grass Valley, 12438 Loma Rica Dr, Grass Valley4,960$0.69$0.69
175 Joerschke Dr, Grass Valley3,190$0.69$0.79
200 Litton Dr, Grass Valley3,000$1.40$1.40
12190 Loma Rica Drive, Grass Valley2,600$1.10$1.10
900 E Main St, Grass Valley3,500$1.84$1.90
111 Margaret Lane, Grass Valley2,679$1.08$1.08
944 - 1020 McCourtney Rd, Grass Valley9,829$1.73$1.73
101 - 106 Providence Mine Rd, Nevada City5,002$1.55$1.55
200 - 208 Providence Mine Rd, Nevada City18,736$1.55$1.55
310 Providence Mine Rd, Nevada City20,282$1.45$1.45
351 - 356 Providence Mine Rd, Nevada City3,239$1.78$1.78
400 Providence Mine Rd, Nevada City72,110$0.95$0.95
120 Richardson St, Grass Valley271$2.21$2.21
420 Sierra College Dr, Grass Valley1,750$2.20$2.20
143 Spring Hill Dr Ste 1C, Grass Valley1,056$1.23$1.23
1012 Sutton Way, Grass Valley3,200$1.87$1.87
426 Sutton Way, Grass Valley2,324$1.45$1.45
841 - 857 Sutton Way, Grass Valley601$1.75$1.75
908 Taylorville Rd, Grass Valley1,800$1.66$1.66
Medical/Dental
563 Brunswick Rd # 5, Grass Valley1,473$1.55$1.55
590 Searls Ave, Nevada City1,475$1.80$1.80
Retail
10052 Alta Sierra Dr, Grass Valley1,900$1.35$1.35
114 Argall Way, Nevada City1,160$1.21$1.21
133 Argall Way, Nevada City2,700$1.25$1.25
408 Broad St & 405 Commercial Street, Nevada City1,100$2.26$2.26
650 Freeman Ln, Grass Valley24,602$1.95$2.20
840 E Main St, Grass Valley5,000$1.60$1.60
138 E Main St & 131 Richardson St, Grass Valley2,190$1.01$1.01
633 - 653 Maltman Dr, Grass Valley2,400$0.83$1.14
671 Maltman Dr, Grass Valley1,660$1.20$1.20
111 W McKnight Way, Grass Valley9,674$1.50$2.15
117 Neal St, Grass Valley2,875$1.79$1.79
2032 - 2118 Nevada City Hwy, Grass Valley2,925$1.56$1.76
984 Plaza Dr, Grass Valley3,550$1.25$1.25
345 Railroad Ave, Nevada City2,000$0.95$0.95
399-471 Sutton Way, Grass Valley1,930$1.35$1.35
526-720 Sutton Way, Grass Valley2,250$2.85$2.85
860-870 Sutton Way, Grass Valley1,704$2.65$2.65

RECENT TRANSACTIONS - Q1 2022   
LocationSq. Ft.Sale/LeaseClose Date
305 Railroad Ave, Nevada City1,100Lease1/1/2022
351 - 356 Providence Mine Rd, Nevada City1,161Lease1/1/2022
571 Searls Ave, Nevada City1,286Lease1/1/2022
200 - 208 Providence Mine Rd, Nevada City718Lease1/1/2022
12297-12299 Loma Rica Dr, Grass Valley2,700Sale1/15/2022
217 W Main St, Grass Valley1,188Sale1/20/2022
12503 Loma Rica Dr, Grass Valley906Sale1/24/2022
12499 Loma Rica Dr, Grass Valley906Sale1/24/2022
1125-1165 Sutton Way, Grass Valley24,539Sale1/31/2022
131-139 Joerschke Dr, Grass Valley972Lease2/15/2022
124 Clydesdale Ct, Grass Valley24,000Sale2/17/2022
563 Brunswick Rd # 9, Grass Valley1,015Sale2/18/2022
425 Broad St, Nevada City840Sale2/18/2022
399-471 Sutton Way, Grass Valley2,285Lease3/1/2022
233 Broad St, Nevada City8,436Sale3/7/2022
101 W McKnight Way, Grass Valley9,150Sale3/31/2022

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