Chico, CA, is emerging as a top dog in the Commercial Real Estate (CRE) world.
According to a report from Coldwell Banker, “the city of roses” is a top destination for construction of medical properties, with facilities already in the works in the city and in neighboring Oroville, CA. Major construction projects fronted by the veterans administration and Nor Cal Native American Indian Health Clinics are also slated for the popular city in coming years.
Chico is the fourteenth largest Metropolitan Statistical Area in the state and is home to California State University, Chico. The school bolsters single-family and multi-family construction, student housing and senior housing in the area with few vacancies reported. The college population also helps boost the thriving brewery and distillery district as well as retail chains like Ulta, Panera, Del Taco, Starbucks, Panda Express, Dollar General, FedEx and Love’s Travel Center.
With the CRE industry on the mends and investors hopeful, but cautious, to take action, experts are projecting gradual improvement. In a Q3 2016 U.S. Economic Forecast, Deloitte estimated that GDP is slated to grow by 2.5 percent in 2017, which could help maintain steady industry growth. Plus, consumer confidence is set to rise with a decreasing unemployment rate.
Here’s a quick look at the market in and around Chico between March and June 2016, courtesy of Loopnet:
In the state, asking prices increased by 2.9 percent to $206,014 per unit. While no data was available for Chico in this category, the sale of multifamily properties in Yuba City, CA, about an hour south of Chico, saw no increase in the asking price over the last three months.
Asking prices increased by 3.3 percent in the state to $226.32 per square foot. The average rental rates increased by 1.3 percent in the state to $23.08 per square foot, and decreased by 1.8 percent to $13.32 per square foot in the city.
Average asking prices increased by 4 percent to $142.69 per square foot while rental rates increased by 2.6 percent to $10.31 per square foot in the state. No data was available for Chico in this category, however its southern neighbor Yuba City experienced no increases to its average rental rates over the last three months.
In the state, the asking price increased by 1 percent to $214.08 per square foot and rental rates increased by .2 percent to $20.88 per square foot. In the city, rental rates increased by .1 percent to $13.28 per square foot.