Commercial Real Estate in Mammoth Lakes is a market all its own. For 22 years, I’ve kept a close eye on the Mammoth Lakes real estate market and have been fortunate enough to experience some incredible upward cycles while surviving some challenging downward trends.
Over the past 12-18 months, I have been paying particular attention to the micro markets within Mammoth Lakes, observing changes to the respective sectors. The condominium and single family home markets have made clear swings to the upside while the Commercial Real Estate Market in Mammoth Lakes has remained relatively level. For a detailed Market Trend Report please see our Market Report Page.
Overall occupancies for office space have been weak, but are slowly starting to increase with concessions and rent abatements diminishing slightly. The Old Mammoth and Main Street districts are experiencing combined rent and CAM charges around $1.95 per square foot per month while the Village at Mammoth is experiencing combined rent and CAM charges closer to $3.50 per square foot per month.
The Village at Mammoth is different from the other commercial districts in the sense that it has been able to achieve steady increases in recent years, without losing occupancy. Tenants appear to be seeking quality locations with quality build-outs. Restaurant spaces appear to be the most desirable property types as spaces rarely come vacant. Restaurants that do come vacant do not general stay vacant.
South Old Mammoth Road is experiencing an increase in activity with Mammoth Rock ‘N’ Bowl expected to be complete in 2014, and businesses such as Tonik Retail and the new Tavern Restaurant locating to this end of town.
My personal interaction with buyers tells me that investors are starting to take a greater interest in occupied commercial and residential apartment projects, looking for respectable returns, while an increasing number of national retail chains are beginning to consider potential development sites.
During the first few months of 2014, I’d expect to hear some interesting news from Mammoth Mountain Ski Area and some news about some larger commercial properties changing hands within Mammoth Lakes. Overall, I expect 2014 to be a good year for Commercial Real Estate in Mammoth Lakes.
