Ballou Digest | 1PO Box 7804, Chico, CA 95927 | P: 530.809.1147 | tara@balloucompany.com | www.balloucompany.com

Ballou Digest[Q1 2016]

Real Estate Topics Ballou Digest | Q1 2016

Real Estate Topics1. 1st Quarter Takeaways

2. Commercial Real Estate Market Trends

I. Leasing Activity

II. Sales Activity

3. Residential Income Real Estate Market Trends

4. Residential Real Estate Market Trends

5. Ballou’s Corner

I. About Ballou Company

II. Meet The Owner

III. Meet Our Newest Agent

IV. Wants and Needs! From our clients who are looking to buy…

V. Featured Listings

6. Business Talk - Bliss Nails and Spa #2!

Ballou Digest | 2

Takeaways[1st Quarter 2016 in Chico]

Commercial Leasing Commercial Lease Rates were relatively steady this quarter, with Office at $1.05 per square foot, Retail at $1.01psf and Industrial at $0.53psf. Activity decreased slightly from last quarter, and inventory has increased.

Commercial Sales There were a total of 6 sales this quarter and there was a very large sale that skewed the numbers quite a bit. At $515.09 per square foot and a total purchase price of $6,826,000, a large veterinary facility in town sold in 29 days. Residential Income Sales The average sale price per square foot of residential income properties in Chico increased to $205. There were only 16 sales (compared to 24 sales last quarter) and there are only 15 active residential income properties on the market. The average Gross Rent Multiplier for income properties sold this quarter was 10.43. The residential income market still proves to be very strong; demand is high and supply is low.

Residential Sales I am excited about the new graph under Residential Sales Activity showing Average Price Per Square Foot, which totaled $187.77 this quarter. You can see by looking at the graph that the average price per square foot has increased dramatically since I started tracking data in 2012, where it was only $144.59. The average sale price of single family homes sold this quarter in Chico totaled $341,109, which is a 7.4% increase from last quarter.

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1st Quarter Takeaways Ballou Digest | Q1 2016

Commercial Leasing ActivityChico, California

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Commercial Real Estate Market Trends Ballou Digest | Q1 2016

Source: CRMLSLease Rates represent newly signed leases entered into the MLS within that particular time period and they may not represent rates for existing leases. Data may not always represent the market, especially if there were not enough transactions to give fair estimates. This search only factors in those properties listed as Office, Retail, and Industrial properties on the MLS.© 2016 CRMLS. Information is believed to be accurate, but shall not be relied upon without verification. Accuracy of square footage, lot size and other information is not guaranteed.By Tara Anderson BRE: 01860993 On 4/03/2016 12:28 pm.

Q1 2016 Commercial Lease DataAverage Lease Rates

($/SF)# of New Leases

Signed # of Active Listings

Office 1.05 13 49Retail 1.01 3 35

Industrial 0.53 4 20

Average Commercial Lease Rates ($/SF)

$0.20

$0.42

$0.64

$0.86

$1.08

$1.30

Q1

2012

Q2

2012

Q3

2012

Q4

2012

Q1

2013

Q2

2013

Q3

2013

Q4

2013

Q1

2014

Q2

2014

Q3

2014

Q4

2014

Q1

2015

Q2

2015

Q3

2015

Q4

2015

Q1

2016

Office Retail Industrial

Year-To-Date: New Leases Signed

20%

15%

65%

Office Retail Industrial

Commercial Sales ActivityChico, California

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Commercial Real Estate Market Trends Ballou Digest | Q1 2016

Q1 2016 Commercial Sales DataAverage Sale Price

($)Average Sale Price

($/SF)Average Days on

Market# of New

Sales# of Active

Listings

Office $1,912,000 $215.94 410 4 6

Retail - - - 0 3

Industrial $691,000 $52.15 1,201 2 6

Average Commercial Sales Price ($/SF)

$0.00

$52.50

$105.00

$157.50

$210.00

Q1

2012

Q3

2012

Q1

2013

Q3

2013

Q1

2014

Q3

2014

Q1

2015

Q3

2015

Q1

2016

Office Retail Industrial

Source: CRMLSData may not always represent the market, especially if there were not enough transactions to give fair estimates. This search only factors in those properties listed as Office, Retail, and Industrial properties on the MLS. © 2016 CRMLS. Information is believed to be accurate, but shall not be relied upon without verification. Accuracy of square footage, lot size and other information is not guaranteed. By Tara Anderson BRE: 01860993 On 4/03/2016 12:48pm

Year-To-Date: Percentage of Sales

33%

67%

Office Retail Industrial

Residential Income ActivityChico, California

Ballou Digest | 6

Residential Income Real Estate Market Trends Ballou Digest | Q1 2016

Source: CRMLS. Data may not always represent the market, especially if there was not enough data to give honest estimates. © 2016 CRMLS. Information is believed to be accurate, but shall not be relied upon without verification. Accuracy of square footage, lot size and other information is not guaranteed. Average Cap Rate was calculated with a 35% expense ratio.By Tara Anderson BRE: 01860993 On 4/03/2016 at 2:32pm

Q1 2016 Residential Income Data

Average Sale Price($)

Average Sale Price

($/Unit)

Average Sale Price ($/SF)

Average Days to Sell # of Sales # of Active

ListingsAverage Cap

RateGross Rent Multiplier

Residential Income $379,494 $106,030 $205.00 77 16 15 6.56% 10.43

$0

$42,500

$85,000

$127,500

$170,000

Q1

2012

Q2

2012

Q3

2012

Q4

2012

Q1

2013

Q2

2013

Q3

2013

Q4

2013

Q1

2014

Q2

2014

Q3

2014

Q4

2014

Q1

2015

Q2

2015

Q3

2015

Q4

2015

Q1

2016

Average Sale Price ($/Unit)

Residential Sales ActivityChico, California

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Residential Real Estate Market Trends Ballou Digest | Q1 2016

Source: CRMLS. Data may not always represent the market, especially if there were not enough transactions to give fair estimates. © 2016 CRMLS. Information is believed to be accurate, but shall not be relied upon without verification. Accuracy of square footage, lot size and other information is not guaranteed.By Tara Anderson BRE: 01860993 On 4/03/2016 2:40pm

Q1 2016 Residential Market Data

Average Sale Price % Change in Average Sale Price from previous quarter

Average Price Per Square Foot

Average Days To Sell # of Sales # of Active

Listings

Single Family Residence $341,109 +7.4% $187.77 51 250 187

Average List Price vs Sale Price of Single Family Homes in Chico

$240,000

$280,000

$320,000

$360,000

Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014 Q3 2014 Q1 2015 Q3 2015 Q1 2016

List Price Sold Price

Average Price Per Square Foot of Single Family Homes in Chico

$140

$155

$170

$185

$200

Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014 Q3 2014 Q1 2015 Q3 2015 Q1 2016

About Ballou CompanyServing California’s Real Estate Needs Ballou Company was founded by Tara Anderson in 2012 and named after her father, Mike Ballou.  Mr. Ballou is a real estate investor himself, which inspired Tara to get into the industry at a very young age. 

At Ballou Company, our goal is to help you with your real estate needs.  We help our clients buy and sell residential properties, commercial properties, equestrian estates, vacant land, commercial leasing, and more.  Our mission is to meet and exceed your needs no matter how big, or how small, the transaction might be. 

We cater to the homeowner because we are homeowners;we cater to the real estate investor because we are investors;

and we cater to the equestrian community because we are equestrians. We have clients throughout California and we have experience in all types of real estate.  When it comes to real estate, we will be there with you every step of the way.

Meet the OwnerTara Anderson, Real Estate Broker

Tara Anderson was born and raised in Chico, California. She graduated from UC Irvine with a degree in Business Economics with Cum Laude Honors and Phi Beta Kappa Honors. Tara has extensive real estate investment knowledge and experience. Previously, she worked at various commercial real estate investment firms in Orange County selling non-traded REITs, TICs, and Private Placements in just about every real estate asset class. She became a Real Estate Broker in 2010 and shortly thereafter, she moved back to Chico and formed Ballou Company.

In addition to her real estate career, Tara has competed at the top levels of the equestrian sport, is very involved within the horse community, and her family owns Camelot Equestrian Park in Butte Valley, California. Tara is Secretary/Treasurer of Camelot Equestrian Park Foundation, a 501(c)3 nonprofit organization.

Tara lives in Chico with her wonderful husband, Andy. She has two horses and rides competitively throughout California.

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Ballou’s Corner Ballou Digest | Q1 2016

Ballou’s Corner Ballou Digest | Q1 2016

Meet Our Newest AgentSummer Hughes, Real Estate Agent

Summer Hughes has extensive experience in all types of real estate transactions and has been in the business for 10 years. She has been at Ballou Company for one month and she is already in 5 escrows! She services clients primarily in the Butte County area. She is a very hard worker, a fantastic negotiator, and very passionate about her job. To learn more about Summer and her impressive résumé, click here: http://www.balloucompany.com/about.html

Wants and NeedsFrom Our Clients Who Are Looking to Buy

We have many clients who are looking for a particular type of real estate and aren’t satisfied with what’s currently on the market. If you have a piece of property that you’re interested in selling (or leasing) please let us know!

• Residential Income properties in all price ranges throughout California• Commercial lot zoned for retail center on the south side of Chico• Retail space on a busy corner in Chico with plenty of parking• House with .5+ acres in Chico, Durham, Nord, or Butte Valley under $400k• Equestrian properties throughout California• A house on property with a shop in the Diamond Avenue area of Chico• Horse property with house in or around Butte Valley for $350k or less• Class A Office and Retail properties to purchase throughout Butte County• Storage facilities for sale in Chico and surrounding areas• Commercial property to lease or purchase in Chico with over 10,000 square feet• Gas stations in Butte County

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Ballou’s Corner Ballou Digest | Q1 2016

Featured Listingsby Tara Anderson and Ballou Company

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Olive Hwy&Executive Pkwy, Oroville Aerial Video3 adjacent lots:Olive Hwy- 5.76 acres for $299k. Zone C2.Olive Hwy- 18.32 acres for $599k. Zone C2.Executive Pkwy- 6.35 acres for $499k. Zone RP.

1406 Locust Street, Chico For Sale and For Lease13,076 Sq Ft building of warehouse and office space for sale or for lease on a corner lot close to downtown Chico. For sale at $699,000. Contact us for lease rates.

1357 E 8th Street, Chico Commercial Lease: $2,600/month for 2,031 square feet of office space on one of Chico’s busiest streets.

Clark Road, Butte Valley 47.47 acres asking $579,000. Vacant Land - Residential, Horse Property. Only 3 miles from Camelot Equestrian Park.

1350 E 9th Street, Chico Commercial Lease: $5,165/month for 4,035 square feet of office space. Divisible to 1,000 square feet.

418 Hazel Street Residential Income Sale: $1,400,0004-plex with 4 bedroom/2 bathroom units.This is an excellent college rental just blocks from CSUC. Fully leased for the 2016-2017 school year at $8,900/month.

The properties above are the listings Ballou Company and Tara Anderson at The Group Real Estate Brokers.© 2016 CRMLS. Information is believed to be accurate, but shall not be relied upon without verification. Accuracy of square footage, lot size and other information is not guaranteed.

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Ballou’s Corner Ballou Digest | Q1 2016

7472 Skyway, Paradise 1.53 acres of of prime commercial property zoned C-2. The property backs up to Paradise Memorial Trailway. Asking $389,000.

1040 Pearson Road, Paradise This 1bed/1bath bungalow is centrally located within the town of Paradise. Needs some TLC, but would make a great home or investment.Asking $105,000.

547 Stilson Canyon, Chico Beautiful 3bed/2bath home on a large lot in Stilson Canyon and on the creek! In EscrowAsking $599,000.

1130 Chestnut Street, Chico 6-unit college rental just down the street from Chico State! One 2bed/1bath and five 1bed/1bath units. Gross income is $4,115/month. In Escrow.Asking $539,000.

1365 Broadway, Olivehurst 2 homes for sale on 20 acres! Could be a great property for future development. Zoned PLSP-MDR: Medium Density Residential. Allows 4 dwelling units per acre. Asking $1,400,000.

The properties above are the listings of Ballou Company and Tara Anderson at The Group Real Estate Brokers.© 2016 CRMLS. Information is believed to be accurate, but shall not be relied upon without verification. Accuracy of square footage, lot size and other information is not guaranteed.

996 East 1st Avenue, Chico Land Lease or Build To Suit on one of the busiest corners in Chico.

Asking $1500/month for Land LeaseNegotiable for Build To Suit.

1251 Whitewood Way, Chico 3 bedroom, 2 bathroom craftsman built home by Tom Provost. Upgraded throughout! Close to PV High School.Asking $348,500.

735 Bird Street, Oroville This 2 bedroom, 1 bathroom home has been completely remodeled and is beautiful. In Escrow.Asking $170,000.

Business TalkBliss Nails and Spa #2!

In the last newsletter I wrote about Bliss Nails and Spa, and I am excited to announce that they have opened Bliss Nails and Spa #2! I had the pleasure of working with Bliss Nails through the process of locating, negotiating, and securing a lease for their new location. Bliss Nails #2 is

located within the Pheasant Run Shopping Center at 2015 Forest Avenue #40 in Chico. You will love this new space and will be able to enjoy the same relaxing atmosphere, quality service, and upscale environment that you’ve been accustomed to.

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Business Talk Ballou Digest | Q1 2016

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Although the information presented in this update has been obtained from reliable sources, Ballou Company does not guarantee its accuracy, and such information may be incomplete or inaccurate. The information contained herein has been obtained from sources we deem reliable. We do not, however, guarantee its accuracy. All information should be verified.

Some data may not accurately represent the market, especially if there weren’t enough transactions to give fair estimates.

By Tara Anderson BRE: 01860993

PO Box 7804, Chico, CA 95927 | P: 530.518.5914 | F: 530.809.1147 | tara@balloucompany.com | www.balloucompany.com

Ba l lou D igest[Q1 2016]