Current trends in commercial real estate differ depending on the particular market segment – be it office, retail or industrial. As shown in the statistics below, our local office sector has been the slowest to recover from the Great Recession and currently remains the softest of the three property types. This is due primarily to structural and cultural changes in the way we work. Technology has reduced the space required by way of electronic/cloud storage, smaller computing devices, and portability. Telecommuting and working from home are now culturally acceptable. Emphasis on collaboration and teamwork is facilitated by co-working spaces and open-office floorplans requiring significantly less space than in the past.
Retail property trends can be defined with one word – Amazon. On-line retail sales are accelerating at an ever-increasing pace, affecting the ability of ‘brick and mortar’ stores to compete (think Sears). However, all is not lost for retail property owners, as internet sales will not limit the need of commercial space for food, fitness and fun. Larger malls and shopping centers will over time transition to more entertainment-based centers, while strip centers and freestanding retail properties will rely on greater percentages of medical services, financial/legal services, food/groceries, cafes/restaurants/bars, and health/beauty/fitness/personal services. Tourist-based and unique retail stores prevalent in destination locations such as our historic Downtowns should retain their appeal and viability.
Our industrial market is today’s shining star. We have a tight local inventory of available industrial space with rents increasing at a higher rate than other sectors. We are beginning to see an influx of millennial families with children seeking a better quality of life than now afforded by large cities. They are bringing with them small businesses and cottage industries that fit nicely into industrial space, which also happens to be the least costly commercial space on the market. Industrial properties with high open ceilings are now in vogue, not just for manufacturing and warehousing, but also for various office uses desiring hip “loft” spaces.
Each commercial property segment has its advantages and disadvantages, but these do change over time so it is always good keep up to date on industry trends before making large financial commitments.
| Vacancy Rates | EOY 2015 | EOY 2016 | EOY 2017 | 2018 YTD |
| Office | 14.49% | 13.14% | 13.86% | 13.11% |
| Retail | 4.58% | 3.57% | 2.63% | 3.38% |
| Industrial | 3.36% | 3.45% | 2.08% | 3.18% |
| All Sectors | 7.48% | 6.72% | 6.19% | 6.56% |
| Median Sale & Lease “List” Prices | Office | Retail | Industrial | |
| Sale Price per Square Foot | $173 | $219 | $140 | |
| Gross Lease Rate per Square Foot | $1.30 | $1.33 | $.81 | |
| AVAILABLE FOR SALE Q3 2018 | |||
|---|---|---|---|
| Location | Sq. Ft. | Price | Price/SF |
| Industrial | |||
| 10662 E Bennett Rd, Grass Valley | 5,202 | $695,000 | $133.60 |
| 150 Crown Point Ct, Grass Valley | 20,000 | $3,099,000 | $154.95 |
| 12521 Loma Rica Dr, Grass Valley | 1,344 | $110,000 | $81.85 |
| 174-178 Lower Grass Valley Rd, Nevada City | 8,320 | $1,249,000 | $150.12 |
| 305 Richardson St, Grass Valley | 1,352 | $179,000 | $132.40 |
| 110 Spring Hill Dr #19, Grass Valley | 2,124 | $374,900 | $176.51 |
| 143 Spring Hill Dr Ste 1A, Grass Valley | 5,200 | $995,000 | $191.35 |
| Office | |||
| 563 Brunswick Rd # 7, Grass Valley | 1,591 | $199,000 | $125.08 |
| 256 Buena Vista St A-F, Grass Valley | 7,156 | $630,000 | $88.04 |
| 154 Hughes Rd #5 & 7, Grass Valley | 1,401 | $250,000 | $178.44 |
| 154 Hughes Rd #4, 6 & 8, Grass Valley | 648 | $130,000 | $200.62 |
| 154 Hughes Rd #2, Grass Valley | 650 | $150,000 | $230.77 |
| 154 Hughes Rd #1, Grass Valley | 1,350 | $280,000 | $207.41 |
| 154 Hughes Rd #7, Grass Valley | 1,428 | $250,000 | $175.07 |
| 900 E Main St, Grass Valley | 23,500 | $2,000,000 | $85.11 |
| 944 - 1020 McCourtney Rd, Grass Valley | 48,336 | $6,600,000 | $129.58 |
| 104 New Mohawk Rd, Nevada City | 26,336 | $3,495,000 | $132.71 |
| 351-357 Providence Mine Rd, Nevada City | 1,152 1,800 | From $275,000 | $195.42 |
| Medical/Dental | |||
| 1061 E Main St # 103, Grass Valley | 1,224 | $146,800 | $119.93 |
| 1061 E Main St # 201, Grass Valley | 1,137 | $189,000 | $166.23 |
| 225 Colfax Ave, Grass Valley | 2,545 | $689,000 | $270.73 |
| 411 Coyote St, Nevada City | 1,842 | $629,000 | $341.48 |
| 150 Glasson Way, Grass Valley | 6,462 | $990,000 | $153.20 |
| 105 Margaret Ln, Grass Valley | 2,460 | $411,000 | $167.07 |
| 590 Searls Ave, Nevada City | 5,575 | $2,000,000 | $358.74 |
| 300 Sierra College Dr #250, Grass Valley | 1,740 | $595,000 | $341.95 |
| 300 Sierra College Dr #165, Grass Valley | 4,787 | $1,450,000 | $302.90 |
| Retail | |||
| 124 Bank St, Grass Valley | 3,886 | $825,000 | $212.30 |
| 210 Broad St, Nevada City | 27,915 | $2,275,000 | $81.50 |
| 426 Broad St, Nevada City | 1,333 | $699,999 | $525.13 |
| 232 Commercial St, Nevada City | 1,710 | $695,000 | $406.43 |
| 206 W Main St, Grass Valley | 3,950 | $995,000 | $251.90 |
| 2391 Nevada City Highway, Lot 3, Grass Valley | 19,034 | $7,478,000 | $392.88 |
| 1125-1165 Sutton Way, Grass Valley | 24,539 | $3,500,000 | $142.63 |
| AVAILABLE FOR LEASE Q3 2018 | |||
|---|---|---|---|
| Location | Sq. Ft. | Min Base Price/SF | Max Base Price/SF |
| Industrial | |||
| 12048 - 12050 Charles Dr, Grass Valley | 1,200 | $0.59 | $0.59 |
| 150 Crown Point Ct, Grass Valley | 20,000 | $0.80 | $0.80 |
| 201-204 Gold Flat Ct, Nevada City | 3,000 | $0.90 | $0.90 |
| 13340-13346 Grass Valley Ave, Grass Valley | 4,000 | $0.66 | $0.66 |
| 13366 Grass Valley Ave, Grass Valley | 7,850 | $0.66 | $0.66 |
| 143 Spring Hill Dr Ste 1A, Grass Valley | 5,082 | $1.23 | $1.23 |
| 1020 Whispering Pines Ln, Grass Valley | 2,132 | $0.79 | $0.79 |
| Office | |||
| 120 N Auburn St, Grass Valley | 483 | $1.86 | $1.86 |
| 124 S Auburn St, Grass Valley | 5,100 | $0.55 | $0.55 |
| 131 S Auburn St, Grass Valley | 1,994 | $1.51 | $1.51 |
| 375 Brunswick Rd, Grass Valley | 6,791 | $1.28 | $1.28 |
| 464-458 Brunswick Rd, Grass Valley | 7,278 | $1.58 | $2.06 |
| 512 - 528 Brunswick Rd, Grass Valley | 742 | $1.00 | $1.00 |
| 563 Brunswick Rd # 7, Grass Valley | 1,591 | $1.26 | $1.26 |
| 580 Brunswick Rd, Grass Valley | 4,950 | $1.95 | $1.95 |
| 124 Clydesdale Ct, Grass Valley | 10,866 | $0.75 | $0.75 |
| 333 Crown Point Cir, Grass Valley | 10,224 | $1.70 | $1.70 |
| 350 Crown Point Cir, Grass Valley | 5,550 | $1.40 | $1.40 |
| 355 Crown Point Cir, Grass Valley | 12,000 | $0.60 | $0.60 |
| 360 Crown Point Cir, Grass Valley | 9,603 | $1.39 | $1.49 |
| 431 Crown Point Cir, Grass Valley | 11,100 | $0.85 | $0.85 |
| 488 Crown Point Cir, Grass Valley | 5,168 | $1.62 | $1.62 |
| 13100 Grass Valley Ave & 12438 Loma Rica Dr, GV | 13,277 | $0.50 | $0.66 |
| 154 Hughes Rd #5, Grass Valley | 922 | $0.95 | $0.95 |
| 154 Hughes Rd #6 & 8, Grass Valley | 648 | $0.95 | $0.95 |
| 154 Hughes Rd #4, Grass Valley | 648 | $0.95 | $0.95 |
| 154 Hughes Rd #7, Grass Valley | 1,428 | $1.25 | $1.25 |
| 200 Litton Dr, Grass Valley | 3,000 | $1.40 | $1.40 |
| 900 E Main St, Grass Valley | 8,500 | $1.15 | $1.15 |
| 970 E Main St, Grass Valley | 750 | $1.10 | $1.10 |
| 111 Margaret Lane, Grass Valley | 2,900 | $1.25 | $1.25 |
| 944 - 1020 McCourtney Rd, Grass Valley | 5,537 | $1.55 | $1.55 |
| 208 Gold Flat Ct, Nevada City | 4,984 | $0.95 | $0.95 |
| 101 - 106 Providence Mine Rd, Nevada City | 1,650 | $1.41 | $1.43 |
| 200 - 208 Providence Mine Rd, Nevada City | 13,529 | $1.47 | $1.48 |
| 351 Providence Mine Rd, Nevada City | 1,152 | $1.80 | $1.80 |
| 352 Providence Mine Rd, Nevada City | 1,530 | $1.60 | $1.60 |
| 353 Providence Mine Rd, Nevada City | 1,704 | $1.70 | $1.70 |
| 357 Providence Mine Rd, Nevada City | 1,800 | $1.75 | $1.75 |
| 400 Providence Mine Rd, Nevada City | 6,265 | $0.95 | $0.95 |
| 400 Providence Mine Rd, Nevada City | 72,110 | $0.95 | $0.95 |
| 400 Providence Mine Rd, Nevada City | 71,985 | $0.95 | $0.95 |
| 360 Sierra College Dr, Grass Valley | 2,519 | $1.96 | $1.96 |
| 420 Sierra College Dr, Grass Valley | 1,750 | $1.90 | $1.90 |
| 165 Spring Hill Dr, Grass Valley | 2,500 | $1.00 | $1.00 |
| 401 Spring St, Nevada City | 200 | $1.29 | $1.29 |
| 1012 Sutton Way, Grass Valley | 3,200 | $2.83 | $2.83 |
| 431 Uren St, Nevada City | 2,210 | $1.22 | $1.47 |
| 1415 Whispering Pines Ln, Grass Valley | 8,009 | $1.60 | $1.60 |
| 900 Whispering Pines Ln, Grass Valley | 4,000 | $0.65 | $1.00 |
| Medical/Dental | |||
| 150 Glasson Way, Grass Valley | 5,720 | $1.35 | $1.55 |
| 470 S Auburn St, Grass Valley | 2,111 | $1.30 | $1.30 |
| 105 Margaret Ln, Grass Valley | 1,100 | $1.30 | $1.30 |
| 123 Margaret Ln, Grass Valley | 1,200 | $1.30 | $1.30 |
| 113 Presley Way, Grass Valley | 1,450 | $0.98 | $0.98 |
| 590 Searls Ave, Nevada City | 1,472 | $1.97 | $1.97 |
| 404 Sierra College Dr, Grass Valley | 1,000 | $1.65 | $1.65 |
| Retail | |||
| 408 Broad St & 405 Commercial Street, Nevada City | 860 | $1.40 | $1.40 |
| 102 Catherine Ln, Grass Valley | 5,496 | $1.25 | $1.50 |
| 650 Freeman Ln, Grass Valley | 15,717 | $2.20 | $2.20 |
| 533-537 E Main St, Grass Valley | 14,300 | $1.20 | $1.20 |
| 840 E Main St, Grass Valley | 6,727 | $1.60 | $1.60 |
| 105 W Main St, Grass Valley | 6,160 | $1.23 | $1.23 |
| 633 - 653 Maltman Dr, Grass Valley | 8,175 | $1.01 | $1.01 |
| 111 W McKnight Way, Grass Valley | 10,246 | $2.06 | $2.06 |
| 102-108 Mill St, Grass Valley | 1,300 | $1.53 | $1.53 |
| 114 Mill St & 115 S Church St, Grass Valley | 1,700 | $1.00 | $1.00 |
| 2032 - 2118 Nevada City Hwy, Grass Valley | 9,769 | $1.76 | $1.76 |
| 984 Plaza Dr, Grass Valley | 8,395 | $1.35 | $1.35 |
| 345 Railroad Ave, Nevada City | 2,200 | $0.85 | $0.85 |
| RECENT TRANSACTIONS Q3 2018 | |||
|---|---|---|---|
| Location | Sq. Ft. | Sale/Lease | Close Date |
| 2391333 Crown Point Cir, Grass Valley | 3,378 | Lease | 6/11/2018 |
| 399-471 Sutton Way, Grass Valley | 1,296 | Lease | 7/16/2018 |
| 152 S Auburn St, Grass Valley | 4,414 | Sale | 7/20/2018 |
| 202 W Main St, Grass Valley | 1,650 | Sale | 7/31/2018 |
| 217 W Main St, Grass Valley | 1,188 | Sale | 7/31/2018 |
| 345 Crown Point Cir, Grass Valley | 815 | Lease | 8/15/2018 |
| 11976 Charles Dr, Grass Valley | 2,550 | Sale | 8/22/2018 |
| 565 Brunswick Rd # 15, Grass Valley | 1,554 | Sale | 8/31/2018 |
| 12497 Loma Rica Dr, Grass Valley | 1,332 | Sale | 9/14/2018 |
