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:

• Record year-to-date sales volume continued the trend from late 2021, led by a pronounced return of investors.
• The heavy sales activity spanned all property types (except commercial land) and locations throughout the South Coast.
• Leasing activity, in general, was on par with recent historical averages, though gross absorption varied considerably by location and property type.
• Office leasing to date was much more active in Santa Barbara than in the neighboring cities; however, Santa Barbara office remains in oversupply.
• Three large tech firms now offering creative office spaces for sublease are likely a bellwether for future increase of office vacancy.