Pacific Coast Business Times: Marijuana industry boosts demand for tri-county industrial space

Santa Barbara, California – Published 11/16/2018
By Annabelle Blair

Demand is growing in Santa Barbara County for industrial spaces and especially facilities for the burgeoning marijuana industry.

Industrial space rates are up, almost neck-in-neck with office space rates, in an interesting twist for the commercial real estate market, reported the Radius Commercial Real Estate team at the 2019 Real Estate and Economic Forecast in Santa Barbara on Nov. 13.

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News-Press: Economist: No repeat of 2008 recession

Santa Barbara, California – Published 11/14/2018
By Ted Mills

Featured speaker at the 11th Annual Radius Real Estate and Economic Forecast include featured economist Christopher Thornberg (top). Other speakers included Steve Golis, Gene Deering and Brad Frohling.

 
The things we should be worried about are not the same as things we are worried about. That was the grand takeaway from keynote speaker Christopher Thornberg, Ph.D.’s presentation at the 11th annual Radius Real Estate & Economic Forecast, a gathering of over 400 business owners, investors, landlords, tenants and community leaders at the Hilton Santa Barbara Tuesday morning.

Both political parties were to blame as well as the media, the economist said, creating a climate of anxiety and panic that did not reflect the big picture especially when it came to numerous economic statistics. Close-ups of charts can make market drops look dramatic, while zooming out (which he did often in his PowerPoint presentation) shows regular fluctuations. Another example he used was the hit that soybean farmers took due to China’s retaliation against President Trump’s trade war—a loss, but not as dramatic once you factored in how small a role soybeans play in America’s agricultural trade.

The big question Dr. Thornberg tackled was when and if a new recession is right around the corner. He was one of the few economists to see the Great Recession coming in 2008 as early as 2006, but in short he doesn’t see a replay like that happening anytime soon.

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Noozhawk: Radius Experts Dig into South Coast Commercial Real Estate Trends at Annual Forecast Event

Santa Barbara, California – Published 11/13/2018
By Brooke Holland

Speakers at the Radius Real Estate and Economic Forecast event Tuesday, including Christopher Thornberg of Beacon Economics, talk about Santa Barbara South Coast trends. (Brooke Holland / Noozhawk photo)

Speakers make note of commercial real estate hotspots like Santa Barbara’s Funk Zone and upper De la Vina Street, and ongoing demand for industrial space on the South Coast

Millennial real estate trends and breakdowns of commercial real estate for the Santa Barbara County South Coast were among the themes at the 11th annual Radius Real Estate & Economic Forecast Tuesday morning.

The gathering, presented by Radius Commercial Real Estate & Investments and multiple other co-sponsors, featured commercial real estate expert speakers, as well as insights and takeaways from a renowned economist.

The real estate industry is starting to take note of millennials (the generation commonly defined as those currently between the ages of 22 and 37), said Gene Deering, senior vice president of Radius Commercial Real Estate & Investments.

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Pacific Coast Business Times: Marijuana market boosts industrial space demand in Santa Barbara County

Santa Barbara, California – Published 11/13/2018
By Annabelle Blair

Demand is growing in Santa Barbara County for industrial spaces and especially facilities for the burgeoning marijuana market.

Industrial space rates are up, almost neck-in-neck with office space rates, an interesting twist for the commercial real estate market, reported the Radius Commercial Real Estate team at the 2019 Real Estate and Economic Forecast in Santa Barbara on Nov. 13.

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2018 Radius Real Estate & Economic Forecast

More than 400 business owners, investors, landlords, tenants and community leaders registered for the annual economic and commercial real estate forecast presented by Radius Commercial Real Estate. This year’s event, held Tuesday, November 13, 2018 at the Hilton Santa Barbara Beachfront Resort, follows the hotly contested midterm elections and featured unique insights and takeaways from renowned economist Christopher Thornberg, Ph.D., Beacon Economics, an international consulting firm based in Los Angeles.

Dr. Thornberg, widely regarded as one of the earliest and most vocal predictors of the sub-prime mortgage market collapse in 2007 and the global economic recession that ensued, presented a spirited take on the U.S. and California economic climate including a no-holds assessment of the risks facing our economy.

The program also featured local commercial real estate experts from Radius delivering market updates and forecasts for the greater South Coast area, including a breakdown of local commercial real estate sectors.

The annual event is co-sponsored by Reicker, Pfau, Pyle & McRoy, LLP; Bartlett, Pringle & Wolf, LLP; American Riviera Bank; HUB International Insurance Services; Meridian Group Real Estate Management; and Hilton Santa Barbara Beachfront Resort.

Balancing the Market? Third Quarter sees second straight year of declining sales activity since 2016; rise in owner-user versus investor purchases.

With 2018’s 3rd Quarter coming to a close, we can confirm that market activity year-to-date is continuing to decline since the peak in 2016. In comparison to last year’s 3rd Quarter total of 25 commercial sales amounting to $85,387,500 in sales volume, this year’s 3rd Quarter came in at 22 commercial sales with total sales volume of $64,328,520, not including the outlier sale of the Hyatt Centric Hotel located at 1111 E. Cabrillo Blvd., which traded in July for $87,500,000. Large hospitality sales typically tip the scales, so subtracting that sale reduces 3rd Quarter volume to roughly $21 million below Q3 2017…

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South Coast Leasing Summary

We’ve seen very little change in Santa Barbara’s office leasing market since early 2017, with the vacancy rate fluctuating between 5.8% (Q2 2017) and 6.6% (Q2 2018). The 3rd Quarter ended with vacancy at 6.1%. Average gross asking and achieved rates also remained relatively steady over the past six quarters, with asking rates between $3.03/SF and $3.17/SF (currently $3.10/SF), and achieved rates coming in lower, ranging between $2.68/SF and $2.88/SF (currently $2.77/SF)…

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