Destination Nevada County

Exclusively Commercial &
Investment Properties
What We Offer
20+ Years Local Experience
“Insider” Market Knowledge
Encyclopedic Research
Attentive Strategic Guidence
LOCK RICHARDS
Managing Director
530.470.1740
www.svnhighland.com
More than 1200 advisors internationally,
bringing millions of dollars in new inventory
each week.
Award winning marketing materials designed
to get your listing on the market and sold fast.
Ultimate access to billions of dollars of
commercial property inventory nationwide.
Proactive marketing to both investors and
brokers to increase value for clients.
What It Means To You
Leverage our relationships to attain your goals
Access to off-market deals and timely opportunities
Confident informed decision-making
A trusting prosperous relationship
NNN • 1031 • Office • Industrial • Retail • Apartments • Land • Leasing • Sales
Mid-Year Commercial Real Estate Report
By Lock Richards
Managing Director, SVN – Highland Commercial Real Estate
At mid-year 2017, the nation seems
to be enjoying what has been referred
to as a “Goldilocks” commercial real
estate market. In the children’s fairy
tale, Goldilocks finds the perfect bowl
of porridge—not too hot, not too cold,
but just right. We currently have roaring
stock values, growing GDP, minimal
unemployment, rising disposable
incomes and increasing spending,
which historically would result in rising
inflation, market overheating, and a
downward turn in the economic cycle.
However, this is currently not the case
as overall inflation during the first two
quarters has been almost non-existent,
interest rates remain very low and stable,
and commercial property values are
rising, but not at the expense of yields
and other real estate fundamentals.
Seemingly, we are sitting in front of a
lovely bowl of porridge!
It’s interesting that in such a favorable
market, sales volume is down in 2017
130 DESTINATION Nevada County
compared to 2016, both nationally
and locally. Various factors may be
contributing to this including gridlock
and uncertainty in Washington,
dissipating “distressed property” sales,
low new supply, and “peak pricing”
concerns (where investors sense a
bubble and feel upside may be limited).
As to peak pricing, this is definitely
not the case locally, as Western Nevada
County has greatly lagged its immediate
neighbors—Bay Area/Sacramento and
Truckee/Reno—in price appreciation
over the past few years. This leaves
Nevada County positioned for greater
profit potential than surrounding areas
and the promise of a very strong second
half 2017.
Statistics - Grass Valley/Nevada City Q2 2016 Q2 2017
Office Vacancy (based on 378 properties totaling +-2.4m SF) 13.9% 13.4%
Industrial Vacancy (based on 191 properties totaling +-1.8m SF) 3.5% 3.0%
Retail Vacancy (based on 363 properties totaling +-2.7m SF) 3.9% 2.4%
Median Office Asking Rent per SF/Month Gross $1.30 $1.42
Median Industrial Asking Rent per SF/Month Gross $ .63 $ .64
Median Retail Asking Rent per SF/Month Gross $1.52 $1.50
# of Sale Transactions - Office 6 1
# of Sale Transactions - Industrial 0 3
# of Sale Transactions - Retail 8 6
EOY 2015 EOY 2016
Median Office Sale Price per SF* $124 $124
Median Industrial Sale Price per SF* $ 80 $ 81
Median Retail Sale Price per SF* $142 $166
*Based on 3-Year Moving Averages