2024 Q2 Report

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%.
  

Link to full report here: https://www.hayescommercial.com/2024/07/2024-q2-report/