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 | |||
|---|---|---|---|
| Location | Sq. Ft. | Price | Price/SF |
| Industrial | |||
| 174-178 Lower Grass Valley Rd, Nevada City | 8,590 | $1,249,000 | $145.40 |
| 12481 Charles Dr, Grass Valley | 35,000 | $4,100,000 | $117.14 |
| Office | |||
| 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 | $699,900 | $171.38 |
| 10015 Alta Sierra Dr, Grass Valley | 4,176 | $699,000 | $167.39 |
| 964 Golden Gate Ter, Grass Valley | 5,740 | $795,000 | $138.50 |
| 512 - 528 Brunswick Rd, Grass Valley | 6,164 | $995,000 | $161.42 |
| 424 Crown Point Cir, Grass Valley | 16,000 | $3,050,000 | $190.62 |
| 900 E Main St, Grass Valley | 23,137 | $3,690,000 | $159.90 |
| 104 New Mohawk Rd, Nevada City | 26,336 | $2,200,000 | $83.54 |
| 400 Providence Mine Rd, Nevada City | 72,110 | $7,200,000 | $99.85 |
| Medical/Dental | |||
| 1061 E Main St # 103, Grass Valley | 1,224 | $199,000 | $162.58 |
| 563 Brunswick Rd # 10, Grass Valley | 1,463 | $214,000 | $146.27 |
| 300 Sierra College Dr #165, Grass Valley | 4,787 | $1,900,000 | $329.64 |
| Retail | |||
| 202 Colfax Ave, Grass Valley | 1,492 | $495,000 | $331.77 |
| 250 Colfax Ave, Grass Valley | 1,531 | $500,000 | $326.58 |
| 860-870 Sutton Way, Grass Valley | 1,704 | $700,000 | $410.80 |
| 127 - 129 Mill St, Grass Valley | 1,802 | $625,000 | $346.84 |
| 206 W Main St, Grass Valley | 3,950 | $750,000 | $189.87 |
| 107 Bank St, Grass Valley | 4,247 | $799,000 | $188.13 |
| 315 Broad St, Nevada City | 4,979 | $1,350,000 | $271.14 |
| 16282 Mount Olive Rd, Grass Valley | 5,655 | $625,000 | $110.52 |
| 210 Broad St, Nevada City | 21,675 | $2,250,000 | $103.81 |
| 997-1005 Sutton Way, Grass Valley | 25,208 | $5,914,434 | $234.63 |
| 399-471 Sutton Way, Grass Valley | 38,230 | $5,350,000 | $139.94 |
| AVAILABLE FOR LEASE Q2 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 | ||||
| 120 N Auburn St, Grass Valley | 950 | $1.47 | $1.47 | |
| 131 S Auburn St, Grass Valley | 1,066 | $1.50 | $1.50 | |
| 167 S Auburn St, Grass Valley | 1,100 | $2.50 | $2.50 | |
| 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 | 5,089 | $1.55 | $1.55 | |
| 355 Crown Point Cir, Grass Valley | 4,800 | $0.60 | $0.60 | |
| 360 Crown Point Cir, Grass Valley | 8,629 | $1.49 | $1.49 | |
| 431 Crown Point Cir, Grass Valley | 11,100 | $0.85 | $0.85 | |
| 443 Crown Point Cir, Grass Valley | 15,264 | $1.25 | $1.25 | |
| 488 Crown Point Cir, Grass Valley | 5,168 | $1.60 | $1.80 | |
| 964 Golden Gate Ter, Grass Valley | 5,740 | $1.33 | $1.33 | |
| 13100 Grass Valley/12438 Loma Rica, Grass Valley | 4,960 | $0.69 | $0.69 | |
| 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 | 4,625 | $1.84 | $1.90 | |
| 111 Margaret Lane, Grass Valley | 2,679 | $1.08 | $1.08 | |
| 944 - 1020 McCourtney Rd, Grass Valley | 11,468 | $1.73 | $1.73 | |
| 104 New Mohawk Rd, Nevada City | 12,000 | $0.79 | $0.79 | |
| 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 | 1,736 | $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 | |
| 1012 Sutton Way, Grass Valley | 3,200 | $1.87 | $1.87 | |
| 841 - 857 Sutton Way, Grass Valley | 601 | $1.75 | $1.75 | |
| 908 Taylorville Rd, Grass Valley | 1,800 | $1.66 | $1.66 | |
| 819 Whispering Pines Ln, Grass Valley | 5,200 | $0.85 | $0.85 | |
| 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 | 1,519 | $1.35 | $1.35 | |
| 114 Argall Way, Nevada City | 1,159 | $1.21 | $1.21 | |
| 133 Argall Way, Nevada City | 2,700 | $1.25 | $1.25 | |
| 650 Freeman Ln, Grass Valley | 18,086 | $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 | 2,187 | $1.01 | $1.01 | |
| 111 W McKnight Way, Grass Valley | 10,546 | $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 | |
| 399-471 Sutton Way, Grass Valley | 1,930 | $1.45 | $1.45 | |
| 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 - Q2 2022 | |||
|---|---|---|---|
| Location | Sq. Ft. | Sale/Lease | Close Date |
| 360 Crown Point Cir, Grass Valley | 4,735 | Lease | 4/8/2022 |
| 471 Sutton Way, Grass Valley | 979 | Lease | 4/10/2022 |
| 143 Spring Hill Dr Ste 1C, Grass Valley | 1,056 | Lease | 4/20/2022 |
| 633 - 653 Maltman Dr, Grass Valley | 8,595 | Sale | 5/4/2022 |
| 351 - 356 Providence Mine Rd, Nevada City | 1,503 | Lease | 5/12/2022 |
| 102 - 108 Union St, Nevada City | 14,000 | Sale | 5/17/2022 |
| 744 & 748 Maltman Dr, Grass Valley | 1,824 | Sale | 5/17/2022 |
| 426 Sutton Way, Grass Valley | 1,204 | Lease | 5/18/2022 |
| 129 Idaho Maryland Rd, Grass Valley | 8,000 | Lease | 5/18/2022 |
| 308 Main St, Nevada City | 2,529 | Sale | 5/20/2022 |
| 426 Broad St, Nevada City | 1,639 | Sale | 5/27/2022 |
| 401 - 403 E Main St, Grass Valley | 5,848 | Sale | 5/31/2022 |
| 1415 Whispering Pines Ln, Grass Valley | 16,000 | Sale | 6/1/202201 |
