Santa Barbara South Coast Chamber Magazine 2021-2022 - 62

Left to right: L3 Technologies leased 40,487 sf of creative
office at 7414 Hollister Ave. The 41,000 sf multi-tenant
office building at 924 Anacapa St in Santa Barbara traded
off-market in April. Kate Farms leased 34,551 sf at 30 S La
Patera Ln in Goleta.
Commercial Real Estate
South Coast market weathers the storm
As with most sectors of the economy, the COVID-19 pandemic profoundly
affected commercial real estate during the past 18 months,
creating significant challenges for most tenants and property owners.
After a stagnant first quarter, both sales and leases bounced back
in the second quarter, with total transaction value increasing from
$86M in Q1 to $135M in Q2. Tenant demand, pent-up during the
depths of the pandemic, led to a surge of 93 lease transactions in Q2,
the highest quarterly count in 5 years.
In most local sub-markets, vacancy hit a " pandemic peak " in Q3 or
Q4 of 2020 and has since subsided. The two exceptions are Santa
Barbara office and Santa Barbara retail, where vacancy rates are
still on the rise. Santa Barbara's office vacancy continues to grow
into uncharted territory, a trend that started before the pandemic.
The 10.8% vacancy rate at midyear is the first double-digit rate on
record, and the inventory of 108 spaces available is also a new high
mark. The conversion to office of the upper two floors of the Ortega
Building (former Macy's) at Paseo Nuevo added approximately
87,500 sf to the market.
Goleta's office deal flow to date has rebounded compared to 2020
but is still trending below pre-pandemic levels. Transactions and
gross absorption are down 20% and 35%, respectively, compared
to pre-COVID 5-year averages. The current vacancy rate is down
to 5.1%.
Office leasing in Carpinteria perked up in Q2 with 5 transactions
totaling 17,000 sf. All of the leases so far this year have been small
spaces, with one exception: 10,060 sf leased at 6383 Rose Ln by an
unnamed tenant in Q2. The vacancy rate is relatively low and stable
at 4.0%.
By Francois DeJohn, Hayes Commercial Group
Recovery from the economic impact of
the pandemic is underway, but there
is a long road ahead. Both sales and
leasing markets are still in a cycle of
extended supply and uneven demand.
62 SOUTH COA ST MAGAZINE SBSCChamber.com
http://www.SBSCChamber.com

Santa Barbara South Coast Chamber Magazine 2021-2022

Table of Contents for the Digital Edition of Santa Barbara South Coast Chamber Magazine 2021-2022

Contents
Santa Barbara South Coast Chamber Magazine 2021-2022 - Cover1
Santa Barbara South Coast Chamber Magazine 2021-2022 - Cover2
Santa Barbara South Coast Chamber Magazine 2021-2022 - Contents
Santa Barbara South Coast Chamber Magazine 2021-2022 - 4
Santa Barbara South Coast Chamber Magazine 2021-2022 - 5
Santa Barbara South Coast Chamber Magazine 2021-2022 - 6
Santa Barbara South Coast Chamber Magazine 2021-2022 - 7
Santa Barbara South Coast Chamber Magazine 2021-2022 - 8
Santa Barbara South Coast Chamber Magazine 2021-2022 - 9
Santa Barbara South Coast Chamber Magazine 2021-2022 - 10
Santa Barbara South Coast Chamber Magazine 2021-2022 - 11
Santa Barbara South Coast Chamber Magazine 2021-2022 - 12
Santa Barbara South Coast Chamber Magazine 2021-2022 - 13
Santa Barbara South Coast Chamber Magazine 2021-2022 - 14
Santa Barbara South Coast Chamber Magazine 2021-2022 - 15
Santa Barbara South Coast Chamber Magazine 2021-2022 - 16
Santa Barbara South Coast Chamber Magazine 2021-2022 - 17
Santa Barbara South Coast Chamber Magazine 2021-2022 - 18
Santa Barbara South Coast Chamber Magazine 2021-2022 - 19
Santa Barbara South Coast Chamber Magazine 2021-2022 - 20
Santa Barbara South Coast Chamber Magazine 2021-2022 - 21
Santa Barbara South Coast Chamber Magazine 2021-2022 - 22
Santa Barbara South Coast Chamber Magazine 2021-2022 - 23
Santa Barbara South Coast Chamber Magazine 2021-2022 - 24
Santa Barbara South Coast Chamber Magazine 2021-2022 - 25
Santa Barbara South Coast Chamber Magazine 2021-2022 - 26
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Santa Barbara South Coast Chamber Magazine 2021-2022 - 28
Santa Barbara South Coast Chamber Magazine 2021-2022 - 29
Santa Barbara South Coast Chamber Magazine 2021-2022 - 30
Santa Barbara South Coast Chamber Magazine 2021-2022 - 31
Santa Barbara South Coast Chamber Magazine 2021-2022 - 32
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Santa Barbara South Coast Chamber Magazine 2021-2022 - 58
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Santa Barbara South Coast Chamber Magazine 2021-2022 - 61
Santa Barbara South Coast Chamber Magazine 2021-2022 - 62
Santa Barbara South Coast Chamber Magazine 2021-2022 - Cover3
Santa Barbara South Coast Chamber Magazine 2021-2022 - Cover4
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