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:

• The number of sales transactions at midyear was 7.5% above the 5-year average.
• However, the average price of investment sales was about half the historical norm, due to higher interest rates and underwriting challenges.
• South Coast leasing was sluggish through midyear, yielding 115 transactions valued at $65 million, both of which are among the lowest midyear totals of the last 15 years.
• Gross absorption of office space was 25% below the 5-year average, and for the first time on record all three market cities have double-digit vacancy.
• Retail transaction volume was above the recent historical average, but there were few large spaces leased, and available space has expanded by 23,000 SF since the beginning of the year.