Uncertain Times – 2023 Q2 Review

The commercial real estate market today is plagued by significant uncertainty which is leading to falling activity levels and property values throughout much of the U.S.  Many investors are on the sidelines waiting for the Fed’s quarterly interest rate hikes to cease, which would likely signal the bottom of the market and begin to spur renewed activity.  However, at this moment, recession remains a prevalent concern, high interest rates and increasing operating expenses are eating into cash flow, and bank failures are leading to tightened underwriting standards including lower LTVs and recourse requirements, further restricting transaction activity. Most commercial real estate experts are now predicting increasing distress (especially in the office sector) through at least the first half of 2024.

Successfully completing a sale transaction in this environment may require certain measures to counteract these negative factors. Options would include procuring buyers with strong banking relationships and financial statements; structuring creative financing; correcting offerings to keep pace with current-market economics; finding motivated sellers; and motivating brokers with attractive financial or other incentives. Attractive seller financing might possibly be the most productive option today in light of the financing issues detailed above.  With a strong down payment, this can also be an unexpectedly beneficial situation for many sellers.

AVAILABLE FOR SALE - Q2 2023
LocationSq. Ft.PricePrice/SF
Industrial
12481 Charles Dr, Grass Valley34,950$4,785,000$136.91
972 Golden Gate Ter, Grass Valley4,864$799,000$164.27
13082 John Bauer Ave, Grass Valley20,000$600,000$30.00
12807 Loma Rica, Grass Valley9,800$1,500,000$153.06
174-178 Lower Grass Valley Rd, Nevada City8,590$1,249,000$145.40
142-158 Olympia Park Rd, Grass Valley9,593$1,200,000$125.09
110 Spring Hill Dr # 3 & 4, Grass Valley3,952$605,000$153.09
110 Spring HIll Dr # 1 & 2, Grass Valley5,500$795,000$144.55
Office
2344 & 2352 Nevada City Hwy, Grass Valley3,212$600,000$186.80
512 - 528 Brunswick Rd, Grass Valley6,164$825,000$161.42
563 Brunswick Rd # 2, Grass Valley1,151$199,000$172.89
565 Brunswick Rd # 15, Grass Valley1,554$275,000$176.96
152 Catherine Ln., Suite E & F, Grass Valley1,393$360,000$258.44
424 Crown Point Cir, Grass Valley16,000$3,050,000$190.62
443 Crown Point Cir, Grass Valley15,264$2,500,000$163.78
194 Gold Flat Rd, Nevada City2,214$1,250,000$564.59
964 Golden Gate Ter, Grass Valley5,740$749,000$130.49
224 Main St, Nevada City4,670$1,225,000$262.31
406 - 412 E Main St, Grass Valley7,714$1,260,000$173.06
900 E Main St, Grass Valley23,137$3,395,000$146.73
2611 Nevada City Hwy, Grass Valley2,172$580,000$267.03
104 New Mohawk Rd, Nevada City26,336$1,850,000$83.54
819 Whispering Pines Ln, Grass Valley24,426$2,900,000$135.10
Medical/Dental
402 S Auburn St, Grass Valley2,880$650,000$225.69
509 S Auburn St, Grass Valley1,429$455,000$318.40
1061 E Main St # 104, Grass Valley1,813$265,000$146.17
700 Zion St, Nevada City12,000$2,700,000$225.00
Retail
800 S Auburn St, Grass Valley9,600$1,650,000$171.88
210 Broad St, Nevada City21,675$2,250,000$103.81
214 Broad St, Nevada City1,684$835,000$495.84
315 Broad St, Nevada City4,979$1,350,000$271.14
423 Broad St, Nevada City904$330,000$365.04
422 Henderson St, Grass Valley13,300$2,600,000$195.49
400 Idaho Maryland Rd, Grass Valley10,595$2,775,000$261.92
120 W Main St, Grass Valley1,632$585,000$358.46
615 Maltman Dr, Grass Valley3,185$1,600,000$502.35
143 Mill St #1/2, Grass Valley9,256$899,000$97.13
163 Mill St, Grass Valley12,600$2,450,000$194.44
984 Plaza Dr, Grass Valley15,000$3,950,000$263.33

AVAILABLE FOR LEASE Q2 2023
Location Sq. Ft.Min Base Price/SF Max Base Price/SF
Industrial
12048-12048 - 12050 Charles Dr, Grass Valley1,500$1.00$1.00
416 Crown Point Cir, Grass Valley8,000$0.75$0.75
155 Spring Hill Dr #104, Grass Valley2,977$1.00$1.25
155 Spring Hill Dr # 201, Grass Valley2,777$0.54$0.54
Office
512 - 528 Brunswick Rd, Grass Valley1,458$1.39$1.39
565 Brunswick Rd # 9, Grass Valley1,450$1.24$1.24
505 Coyote St, Nevada City6,749$1.65$1.65
333 Crown Point Cir, Grass Valley6,463$1.55$1.55
345 Crown Point Cir, Grass Valley7,071$0.92$0.92
350 Crown Point Cir, Grass Valley5,737$1.55$1.55
360 Crown Point Cir, Grass Valley8,629$1.49$1.49
431 Crown Point Cir, Grass Valley5,471$0.85$0.85
443 Crown Point Cir, Grass Valley15,264$1.25
149 Crown Point Ct, Grass Valley1,161$1.50$1.50
964 Golden Gate Ter, Grass Valley1,800$1.20$1.20
175 Joerschke Dr, Grass Valley500$1.00$1.00
170 E Main St, Grass Valley2,030$2.26$2.26
1740 - 1744 E Main St, Grass Valley2,728$2.25$2.25
900 E Main St, Grass Valley5,900$1.84$1.90
970 E Main St, Grass Valley1,350$1.18
749 Maltman Dr, Grass Valley768$1.00$1.00
944 - 1020 McCourtney Rd, Grass Valley11,412$1.53$1.73
117 New Mohawk Rd, Nevada City6,182$1.35$1.35
138 New Mohawk Rd, Nevada City8,700$1.95$1.95
101 - 208Providence Mine Rd, Nevada City17,406$1.60$1.60
310 Providence Mine Rd, Nevada City10,000$1.75$1.85
351 - 356 Providence Mine Rd, Nevada City1,736$1.78$1.78
400 Providence Mine Rd, Nevada City36,000$1.15$2.15
360 Sierra College Dr, Grass Valley803$2.17$2.17
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 Valley10,172$2.45$2.45
Medical/Dental
563 Brunswick Rd # 5, Grass Valley1,473$1.15$1.15
140 Litton Dr, Grass Valley2,034$1.96$2.26
300 Sierra College Dr #250, Grass Valley1,740$2.98$2.98
700 Zion St, Nevada City10,300$1.36
Retail
114 Argall Way, Nevada City1,159$1.21$1.21
311-313 Commercial St, Nevada City740$2.03$2.03
650 Freeman Ln, Grass Valley9,214$1.95$2.20
400 Idaho Maryland Rd, Grass Valley1,500$1.85$1.85
840 E Main St, Grass Valley17,260$1.60$2.85
107 W Main St, Grass Valley1,020$1.00$1.00
116 W Main St, Grass Valley850$1.24$1.24
111 W McKnight Way, Grass Valley10,575$3.00$3.00
2032 - 2118 Nevada City Hwy, Grass Valley5,180$1.76$1.76
984 Plaza Dr, Grass Valley1,709$1.25$1.25
521 Searls Ave, Nevada City1,000$1.80$1.80
399-471 Sutton Way, Grass Valley1,402$1.45$1.45
526-720 Sutton Way, Grass Valley2,250$2.85$2.85
102 - 108 Union St, Nevada City1,843$2.00

RECENT TRANSACTIONS - Q2 2023
LocationSq. Ft.Sale/LeaseClose Date
200 - 208 Providence Mine Rd, Nevada City3,055Lease3/24/2023
208 Gold Flat Ct, Nevada City1,500Lease3/13/2023
944 - 1020 McCourtney Rd, Grass Valley1,194Lease4/18/2023
371 Railroad Ave, Grass Valley3,740Sale5/1/2023
565 Brunswick Rd # 9, Grass Valley1,387Sale5/1/2023
319 Broad St, Nevada City1,587Sale5/2/2023
11235 Cliffs Place, Grass Valley1,764Sale5/2/2023
110 Spring Hill Dr #19, Grass Valley3,774Sale5/3/2023

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