How is our local commercial real estate market performing in comparison with the national market? Starting with the office market: Nationally, 26mm net square feet were leased in the 3rd quarter and the office vacancy rate fell +-1% to 16.1%. Locally, office vacancies increased slightly by 5 basis points to 10.71% – still a tighter market than nationally.
Regarding the U.S. retail market, absorption increased to the greatest extent since 2017, decreasing vacancy approximately 2% down to 5.3%, with average rents YOY increasing 2.5%. Locally, retail vacancy increased slightly by 5 basis points to 3.14%, still reflecting a stronger market than nationally.
With respect to the industrial market, high expectations nationally were met and surpassed. Rents grew approximately 3% and absorption YTD was the best since 2000, with the vacancy rate falling to 4.4%. Locally, as with office and retail, our industrial vacancy increased slightly by about 14 basis points to 1.63% – still a more supply-constrained market than nationally.
Regarding multifamily: On a national basis, a record 273k apartment units were filled in the third quarter and the national apartment vacancy rate fell to a record 2.8%, with rents bumping up 11% YOY.
In summary, the Western Nevada County market compares favorably to the national market in all sectors signaling steady rent and value growth barring economic recession. (National figures sourced by Marcus & Millichap.)
| AVAILABLE FOR SALE - Q3 2021 | |||
|---|---|---|---|
| Location | Sq. Ft. | Price | Price/SF |
| Industrial | |||
| 875 Idaho Maryland, Grass Valley | 4,320 | $599,000 | $138.66 |
| Office | |||
| 10015 Alta Sierra Dr, Grass Valley | 4,176 | $760,000 | $181.99 |
| 512 - 528 Brunswick Rd, Grass Valley | 6,164 | $1,550,000 | $251.46 |
| 563 Brunswick Rd # 9, Grass Valley | 1,015 | $119,000 | $117.24 |
| 565 Brunswick Rd # 9, Grass Valley | 1,387 | $190,000 | $209.30 |
| 230 Colfax Ave, Grass Valley | 4,084 | $749,000 | $183.40 |
| 360 Crown Point Cir, Grass Valley | 22,796 | $2,900,000 | $155.78 |
| 400 Crown Point Cir, Grass Valley | 19,754 | $1,725,000 | $87.32 |
| 125 Crown Point Ct, Grass Valley | 41,604 | $3,120,300 | $75.00 |
| 308 Main St, Nevada City | 2,529 | $750,000 | $296.56 |
| 1740 - 1744 E Main St, Grass Valley | 7,139 | $1,559,000 | $218.38 |
| 1781 E Main St, Grass Valley | 1,945 | $697,000 | $358.35 |
| 900 E Main St, Grass Valley | 23,137 | $3,690,000 | $159.90 |
| 734 Maltman Drive, Grass Valley | 2,000 | $349,000 | $174.50 |
| 104 New Mohawk Rd, Nevada City | 26,336 | $2,500,000 | $94.93 |
| 11408 Pleasant Valley Road, Penn Valley | 1,550 | $430,000 | $277.42 |
| 841 - 857 Sutton Way, Grass Valley | 8,788 | $3,979,724 | $452.86 |
| Medical/Dental | |||
| 565 Brunswick Rd # 1, Grass Valley | 1,075 | $225,000 | $209.30 |
| 1061 E Main St # 101, Grass Valley | 1,137 | $199,500 | $175.46 |
| 1061 E Main St. # 203, Grass Valley | 1,120 | $192,500 | $171.88 |
| 300 Sierra College Dr #165, Grass Valley | 4,787 | $1,800,000 | $329.64 |
| 700 Zion St, Nevada City | 12,000 | $2,500,000 | $208.33 |
| Retail | |||
| 15386 & 15448 Little Valley Rd, Grass Valley | 1,530 | $1,200,000 | $784.31 |
| 210 Broad St, Nevada City | 21,675 | $2,000,000 | $92.27 |
| 233 Broad St, Nevada City | 7,927 | $1,695,000 | $213.83 |
| 314 Broad St, Nevada City | 2,448 | $1,575,000 | $643.38 |
| 315 Broad St, Nevada City | 4,979 | $1,350,000 | $271.14 |
| 303 Broad St & 108 S Pine St, Nevada City | 1,901 | $950,000 | $499.74 |
| 250 Colfax Ave, Grass Valley | 1,531 | $469,000 | $306.34 |
| 106 E Main St, Grass Valley | 3,828 | $1,250,000 | $326.54 |
| 124 E Main St, Grass Valley | 6,000 | $650,000 | $108.33 |
| 840 E Main St, Grass Valley | 28,706 | $4,550,000 | $158.50 |
| 217 W Main St, Grass Valley | 1,188 | $399,000 | $335.86 |
| 633 - 653 Maltman Dr, Grass Valley | 8,595 | $1,099,000 | $127.87 |
| 123 Mill St, Grass Valley | 5,000 | $775,000 | $155.00 |
| 1125-1165 Sutton Way, Grass Valley | 24,539 | $5,155,000 | $210.07 |
| 997-1005 Sutton Way, Grass Valley | 25,208 | $5,100,000 | $218.18 |
| 102 - 108 Union St, Nevada City | 14,000 | $3,200,000 | $228.57 |
| AVAILABLE FOR LEASE Q3 2021 | |||
|---|---|---|---|
| Location | Sq. Ft. | Min Base Price/SF | Max Base Price/SF |
| Industrial | |||
| 416 Crown Point Cir, Grass Valley | 12,360 | $0.80 | $0.80 |
| 13046 Loma Rica Dr, Grass Valley | 2,400 | $0.60 | $0.60 |
| 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 |
| 131 S Auburn St, Grass Valley | 1,066 | $1.51 | $1.51 |
| 375 Brunswick Rd, Grass Valley | 5,798 | $1.28 | $1.28 |
| 464-458 Brunswick Rd, Grass Valley | 7,706 | $1.60 | $2.05 |
| 124 Clydesdale Ct, Grass Valley | 7,352 | $0.75 | $0.75 |
| 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 | $1.49 | $1.69 |
| 400 Crown Point Cir, Grass Valley | 19,754 | $1.10 | $1.10 |
| 431 Crown Point Cir, Grass Valley | 11,100 | $0.85 | $0.85 |
| 488 Crown Point Cir, Grass Valley | 5,168 | $1.60 | $1.80 |
| 149 Crown Point Ct, Grass Valley | 728 | $1.50 | $1.50 |
| 962 Golden Gate Ter, Grass Valley | 6,206 | $0.85 | $0.85 |
| 175 Joerschke Dr, Grass Valley | 1,940 | $0.77 | $0.77 |
| 200 Litton Dr, Grass Valley | 3,000 | $1.40 | $1.40 |
| 900 E Main St, Grass Valley | 5,900 | $1.84 | $1.90 |
| 970 E Main St, Grass Valley | 720 | $1.25 | $1.25 |
| 749 Maltman Dr, Grass Valley | 1,928 | $1.00 | $1.00 |
| 944 - 1020 McCourtney Rd, Grass Valley | 6,004 | $1.73 | $1.73 |
| 138 New Mohawk Rd, Nevada City | 5,700 | $2.25 | $2.25 |
| 101 - 106 Providence Mine Rd, Nevada City | 4,941 | $1.55 | $1.55 |
| 200 - 208 Providence Mine Rd, Nevada City | 19,659 | $1.55 | $1.55 |
| 310 Providence Mine Rd, Nevada City | 15,089 | $1.75 | $1.75 |
| 351 - 356 Providence Mine Rd, Nevada City | 4,386 | $1.78 | $1.78 |
| 400 Providence Mine Rd, Nevada City | 72,110 | $0.95 | $0.95 |
| 305 Railroad Ave, Nevada City | 1,362 | $1.60 | $1.60 |
| 420 Sierra College Dr, Grass Valley | 1,750 | $2.00 | $2.00 |
| 1012 Sutton Way, Grass Valley | 3,200 | $1.87 | $1.87 |
| 426 Sutton Way, Grass Valley | 2,324 | $1.45 | $1.45 |
| 908 Taylorville Rd, Grass Valley | 2,704 | $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 | $2.16 | $2.16 |
| Retail | |||
| 114 Argall Way, Nevada City | 1,160 | $1.21 | $1.21 |
| 133 Argall Way, Nevada City | 2,700 | $1.25 | $1.25 |
| 150 S Auburn St, Grass Valley | 1,100 | $1.09 | $1.09 |
| 246 Commercial St & 204 N Pine St, Nevada City | 1,250 | $1.98 | $1.98 |
| 650 Freeman Ln, Grass Valley | 20,856 | $1.95 | $2.20 |
| 131-139 Joerschke Dr, Grass Valley | 4,236 | $0.92 | $1.15 |
| 1239 - 1267 E Main St, Grass Valley | 2,855 | $1.12 | $1.12 |
| 128 - 132 E Main St, Grass Valley | 800 | $2.03 | $2.03 |
| 840 E Main St, Grass Valley | 11,727 | $1.60 | $1.60 |
| 107 W Main St, Grass Valley | 951 | $1.42 | $1.42 |
| 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 | 10,580 | $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 | $1.56 |
| 984 Plaza Dr, Grass Valley | 6,359 | $1.25 | $1.25 |
| 1035-1043 Sutton Way, Grass Valley | 1,890 | $2.00 | $2.00 |
| 399-471 Sutton Way, Grass Valley | 5,194 | $1.35 | $1.60 |
| 860-870 Sutton Way, Grass Valley | 1,704 | $3.00 | $3.00 |
| RECENT TRANSACTIONS - Q3 2021 | |||
|---|---|---|---|
| Location | Sq. Ft. | Sale/Lease | Close Date |
| 117 New Mohawk Rd, Nevada City | 1,625 | Lease | 6/2/2021 |
| 305 Railroad Ave, Nevada City | 1,224 | Lease | 6/29/2021 |
| 311 Broad St, Nevada City | 1,320 | Sale | 7/21/2021 |
| 399-471 Sutton Way, Grass Valley | 3,252 | Lease | 8/1/2021 |
| 504 Whiting St, Grass Valley | 4,972 | Sale | 8/6/2021 |
| 421 Broad St, Nevada City | 1,850 | Sale | 8/10/2021 |
| 128 New Mohawk Rd, Nevada City | 2,612 | Sale | 9/1/2021 |
| 200 - 208 Providence Mine Rd, Nevada City | 1,216 | Lease | 9/1/2021 |
