Quarterly review and forecast covering leasing and sales of commercial real estate – including office, industrial, and retail – for the South Coast of Santa Barbara County.

Highlights:

• Commercial sales activity stalled in Q1, as high interest rates and pricing friction took many investors out of play.
• Owner-users generated above-average sales activity.
• Office inventory is in over-supply, as remote work has left a glut of large office spaces on the market while limiting demand to absorb vacancies.
• Retail vacancy has fully recovered to pre-pandemic levels, though State Street’s downtown corridor continues to wrestle with a surplus of empty storefronts.
• Industrial leasing activity and vacancy are both very limited, though a handful of large spaces have recently come to market.