Santa Barbara South Coast Chamber Magazine 2022-2023 - 62

Hotel Californian:
Radius was
instrumental in the
landmark sale of the
Hotel Californian in
September 2021, as
well as the previous
sale of the " La
Entrada " development
project which became
the Californian. Inset:
Mayee Plaza, a mixeduse
project, included
the development
of 26 market-rate
apartment units in
addition to 5,500 sq. ft.
of commercial space.
Commercial Real Estate
South Coast market holds strong despite economic turbulence
Watching market
trends has been
equivalent
head-spin
to a
since
early 2020 when
COVID emerged
and set about
re-shaping every
industry in every
corner of the
world. But if we
look at our slice of
the economy on
the South Coast through the lens of commercial real estate, we can
be relatively optimistic about current sales and leasing activity.
While most would prefer to write off 2020, no one would have
predicted that 2021-still deep in the thralls of COVID and mounting
concerns over rising inflation and interest rates-would see recordbreaking
commercial sales in the South Coast region, coupled
with stable leasing boosted by a strong industrial sector, carrying
into 2022. In fact, with 71 commercial sales through end of Q2, and
volume that quarter exceeding $245MM, it's likely 2022 will end with
another solid performance.
Trophy sales and more State Street properties trading have
highlighted the year, along with a bevy of hotel deals beginning with
the sale of the Hotel Californian in late 2021 and no doubt buoyed
by a rebound in tourism. Additionally, the trend of more investor
versus owner-user purchases continues to signal confidence in the
resilience of our market. And looking at multi-family, there simply
isn't enough product to satisfy hungry investors drawn to attractive
low apartment vacancy throughout California.
62 SOUTH COA ST MAGAZINE SBSCChamber.com
As for leasing, " stable " is the word as we have not seen dramatic
swings in vacancy or lease rates, despite tepid demand for office
space and continued struggles of brick-and-mortar retail. Demand
for new industrial product
remains high, especially in Goleta
and Carpinteria. We can feel fairly good about the current state
of commercial leasing as long as jobs reports stay strong and
unemployment low, even with whispers of a looming recession.
One thing is certain, it's never been more critical to engage an
experienced professional with extensive market knowledge and
specialized skills to manage your commercial leasing and sales
interests and to help navigate ever-changing laws and regulations
for transacting real estate. To ensure you move in the right direction
under the right terms, contact The Radius Team today for a
complimentary and confidential consultation. radiusgroup.com
By Radius Commercial Real Estate
Radius Group celebrated 20 years
in 2022, just after completing
construction of new downtown
offices, in partnership with
renowned Southern California
developer KIBO Group and a small
group of local investors.
http://www.radiusgroup.com http://www.SBSCChamber.com
Santa Barbara South Coast Chamber Magazine 2022-2023

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