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 dollar volume dropped 60% from the 5-year average, with office property showing a greater decrease than other types.
• There were only 4 sales with a closing price over $5 million, as higher-value purchases are more sensitive to current higher interest rates.
• Mirroring a national trend, South Coast office tenants are leasing more compact spaces, about 30% smaller on average, locally.
• South Coast retail continued to recover, though prominent shopping destinations in Santa Barbara are still struggling.
• A few large industrial leases in Goleta contributed to net absorption of 44,000 SF, tightening vacancy there to 1.4%.