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Napa County retail building property tax appeals are significantly affected by key metrics such as market vacancy and market rent. These recent trends are summarized below.
| Vacancy % | Total Available % | Total Inventory SF | Average Asking NNN Rent | |
|---|---|---|---|---|
| North Bay | 3.37% | 5.06% | 27,980,368 | $25.55 |
| East Bay | 6.27% | 8.58% | 52,504,697 | $30.56 |
| West Bay | 5.26% | 5.92% | 12,809,448 | $45.79 |
| South Bay | 4.83% | 6.08% | 38,179,947 | $35.91 |
| Total Bay Area Retail Market | 5.14% | 6.85% | 131,474,460 | $32.75 |
Analysis By WPA 2023
Data By CBRE Market Research 2023
The largest cities in Napa County by population include: Napa, American Canyon, St. Helena, Calistoga, Yountville, Angwin, Deer Park, Rutherford, and Oakville.
Napa County hotel property tax appeals are significantly affected by key metrics such as market vacancy and market rent. These trends are summarized below.
| UNITED STATES DATA | Total | Change From 2019 |
|---|---|---|
| Occupancy | 62.70% | -4.90% |
| ADR | $149.00 | 13.6% |
| RevPAR | $93.27 | 8.10% |
Analysis By WPA 2023
Data By STR, TE, February 3, 2023 (Published), As of December 31, 2022
2022 Year End Indicators
* Uneven, non-linear recovery across industry segments.
* Overall construction pipeline activity is down. Some December 2022 growth in construction is seen.
Napa County industrial building property tax appeals are significantly affected by key metrics such as market vacancy and market rent. These trends are summarized below.
| Vacancy % | Total Available % | Total Inventory SF | Asking Rent Avg. Mfg. | |
|---|---|---|---|---|
| American Canyon | 0% | 0.00% | 8,686,377 | $0.88 |
| Benicia | 0.50% | 1.10% | 8,557,920 | $0.88 |
| Fairfield | 3.20% | 7.50% | 15,901,674 | $0.85 |
| Napa | 2.10% | 2.70% | 8,602,553 | $1.08 |
| Vacaville | 2.70% | 2.90% | 9,146,577 | $0.88 |
| Vallejo | 0.10% | 0.10% | 4,841,219 | $0.73 |
| Total Manufacturing | 0.20% | 0.20% | 8,045,917 | $0.85 |
| Total Warehouse | 1.50% | 3.40% | 42,063,072 | $0.85 |
| Total Flex | 5.90% | 6.10% | 5,627,331 | $0.96 |
| Total Industrial Market - Napa/Solano Counties | 1.80% | 3.20% | 55,736,320 | $0.88 |
Analysis By WPA 2023
Data By CBRE Market Research 2023
The largest cities in Napa County by population include: Napa, American Canyon, St. Helena, Calistoga, Yountville, Angwin, Deer Park, Rutherford, and Oakville.
Napa County is the heart of the North Bay wine country, and can be found between Sonoma and Solano Counties, south of Yolo and Lake Counties, and a short day-trip away from San Francisco. The largest cities in Napa by population are Napa, American Canyon, St. Helena, and Calistoga.
The hotel and foodservices industries are the largest in Napa County following government and health care. The health of the hospitality industry is directly tied to the economy, which is tracked and forecasted by leading hotel industry researchers and analysts of Smith Travel Research (STR) and Tourism Economics (TE). According to forecasts by STR and TE as of early 2023, recession is on the horizon.
The baseline economic forecasts by STR/TE as of early 2023 call for a CPI of 4.4% in 2023, and 2.5% in 2024. Their California projections call for changes in ADR and occupancy, both by less than inflation. Despite increases in hotel revenue in 2022, as local and worldwide hotel markets have emerged from Covid restrictions and various levels of lockdown, the boost in travel is viewed by some analysts in the market as a reflection of pent-up demand which may not continue at the same levels for the long-term.
Nationally, STR/TE report average occupancy levels remain below pre-Covid 2019 levels by 4.9%. Though average daily rates have approached or exceeded 2019 levels in some markets, net hotel margins have also been affected in both 2022 and 2023 by higher inflation and higher labor costs. Labor costs have been affected by labor shortages and costs to attract and train labor. Hotel financial performance studies have demonstrated wide variances across industry segments.
The outlook for hotels in 2023 and 2024 is inextricably linked to the direction of the economy, which remain uncertain as of early 2023. The Federal Funds rate was significantly increases in the second half of 2022, with prevalent market expectations of increases continuing through 2023, and some anticipating continued increases into 2024. As affects are experienced in the economy overall, the risk of recession is widely considered to be high as of early 2023, and is projected as such by many economists. For these reasons, the future outlook for the hotel market is viewed by many analysts as one of caution.
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Director, Valuation Services
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