Recession??? – 2022 Q2 Review

The second quarter of 2022 produced mixed economic signals calling into question the factors that determine a recession. Inflation skyrocketed to over 9% driven primarily by gas and food prices. The Fed is targeting successive 75 basis point increases in the Fed Funds Rate in an attempt to tame the price increases. Additionally, GDP has declined over the past two quarters. While these signs all point to a recession, at the same time we are also seeing jobs, retail consumption, manufacturing and service sectors registering positive growth.

Locally, Nevada County’s industrial and retail vacancy rates have continued to fall to very low levels, reflecting the positive growth in manufacturing and service sectors mentioned above. Office vacancy has increased by about 1% over the first quarter rate, signifying continued volatility and disorder in this sector.

A positive note is that capital is migrating from larger metro areas into small and tertiary markets like Nevada County, which are now perceived to be best positioned to benefit from city outmigration and work-from-home trends produced by the pandemic.

While economic signals are quite disparate as of this writing, Nevada County commercial real estate does appear to be relatively well positioned to continue on the general upward trajectory that we see in rents and values since 2017.

AVAILABLE FOR SALE - Q2 2022   
LocationSq. Ft.PricePrice/SF
Industrial
174-178 Lower Grass Valley Rd, Nevada City8,590$1,249,000$145.40
12481 Charles Dr, Grass Valley35,000$4,100,000$117.14
Office
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$699,900$171.38
10015 Alta Sierra Dr, Grass Valley4,176$699,000$167.39
964 Golden Gate Ter, Grass Valley5,740$795,000$138.50
512 - 528 Brunswick Rd, Grass Valley6,164$995,000$161.42
424 Crown Point Cir, Grass Valley16,000$3,050,000$190.62
900 E Main St, Grass Valley23,137$3,690,000$159.90
104 New Mohawk Rd, Nevada City26,336$2,200,000$83.54
400 Providence Mine Rd, Nevada City72,110$7,200,000$99.85
Medical/Dental
1061 E Main St # 103, Grass Valley1,224$199,000$162.58
563 Brunswick Rd # 10, Grass Valley1,463$214,000$146.27
300 Sierra College Dr #165, Grass Valley4,787$1,900,000$329.64
Retail
202 Colfax Ave, Grass Valley1,492$495,000$331.77
250 Colfax Ave, Grass Valley1,531$500,000$326.58
860-870 Sutton Way, Grass Valley1,704$700,000$410.80
127 - 129 Mill St, Grass Valley1,802$625,000$346.84
206 W Main St, Grass Valley3,950$750,000$189.87
107 Bank St, Grass Valley4,247$799,000$188.13
315 Broad St, Nevada City4,979$1,350,000$271.14
16282 Mount Olive Rd, Grass Valley5,655$625,000$110.52
210 Broad St, Nevada City21,675$2,250,000$103.81
997-1005 Sutton Way, Grass Valley25,208$5,914,434$234.63
399-471 Sutton Way, Grass Valley38,230$5,350,000$139.94

AVAILABLE FOR LEASE Q2 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
120 N Auburn St, Grass Valley950$1.47$1.47
131 S Auburn St, Grass Valley1,066$1.50$1.50
167 S Auburn St, Grass Valley1,100$2.50$2.50
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 Valley5,089$1.55$1.55
355 Crown Point Cir, Grass Valley4,800$0.60$0.60
360 Crown Point Cir, Grass Valley8,629$1.49$1.49
431 Crown Point Cir, Grass Valley11,100$0.85$0.85
443 Crown Point Cir, Grass Valley15,264$1.25$1.25
488 Crown Point Cir, Grass Valley5,168$1.60$1.80
964 Golden Gate Ter, Grass Valley5,740$1.33$1.33
13100 Grass Valley/12438 Loma Rica, Grass Valley4,960$0.69$0.69
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 Valley4,625$1.84$1.90
111 Margaret Lane, Grass Valley2,679$1.08$1.08
944 - 1020 McCourtney Rd, Grass Valley11,468$1.73$1.73
104 New Mohawk Rd, Nevada City12,000$0.79$0.79
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 City1,736$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
1012 Sutton Way, Grass Valley3,200$1.87$1.87
841 - 857 Sutton Way, Grass Valley601$1.75$1.75
908 Taylorville Rd, Grass Valley1,800$1.66$1.66
819 Whispering Pines Ln, Grass Valley5,200$0.85$0.85
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 Valley1,519$1.35$1.35
114 Argall Way, Nevada City1,159$1.21$1.21
133 Argall Way, Nevada City2,700$1.25$1.25
650 Freeman Ln, Grass Valley18,086$1.95$2.20
840 E Main St, Grass Valley5,000$1.60$1.60
138 E Main St & 131 Richardson St, Grass Valley2,187$1.01$1.01
111 W McKnight Way, Grass Valley10,546$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
399-471 Sutton Way, Grass Valley1,930$1.45$1.45
526-720 Sutton Way, Grass Valley2,250$2.85$2.85
860-870 Sutton Way, Grass Valley1,704$2.65$2.65

RECENT TRANSACTIONS - Q2 2022   
LocationSq. Ft.Sale/LeaseClose Date
360 Crown Point Cir, Grass Valley4,735Lease4/8/2022
471 Sutton Way, Grass Valley979Lease4/10/2022
143 Spring Hill Dr Ste 1C, Grass Valley1,056Lease4/20/2022
633 - 653 Maltman Dr, Grass Valley8,595Sale5/4/2022
351 - 356 Providence Mine Rd, Nevada City1,503Lease5/12/2022
102 - 108 Union St, Nevada City14,000Sale5/17/2022
744 & 748 Maltman Dr, Grass Valley1,824Sale5/17/2022
426 Sutton Way, Grass Valley1,204Lease5/18/2022
129 Idaho Maryland Rd, Grass Valley8,000Lease5/18/2022
308 Main St, Nevada City2,529Sale5/20/2022
426 Broad St, Nevada City1,639Sale5/27/2022
401 - 403 E Main St, Grass Valley5,848Sale5/31/2022
1415 Whispering Pines Ln, Grass Valley16,000Sale6/1/202201

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