Pacific Coast Business Times: Housing issues dominate Central Coast economic outlook

Santa Barbara, California – Published 1/5/2018
By Robert Shutt

As the national economy continues to accelerate, California is turning in a sub-par performance with the faltering tri-county economy lagging further behind.

With the declining economic performance facing more headwinds from the biggest wildfire in California history, the Central Coast will have to radically transform its approach to housing to grow significantly in 2018.

Those two factors — fires and faltering economics — are sure to combine in a way that will be quite challenging, especially for housing in Ventura County in 2018.

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Noozhawk: Saks OFF Fifth Stays

Santa Barbara, California – Published 12/7/2017
By Joshua Molina

Real estate sources have confirmed that Saks OFF Fifth has extended its lease for one year, beginning in February. The company was widely rumored to be giving notice about a departure from the 1001 State St. building, before officially giving notice in October.

The store stays for now. The property is managed by Radius Group.

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Pacific Coast Business Times: Central Coast tourism grows despite hurdles

Santa Barbara, California – Published 11/10/2017
By Robert Shutt

The Central Coast has been regarded by many as one of the most desirable travel destinations in the world. With its beaches, parks and entertainment options, the area has no shortage of attractions and locals are reaping the benefits.

Tourists spent $126.3 billion in California in 2016, making it the seventh straight year of tourist spending growth.

“California’s top export is international visitor spending with the total spent by just international visitors topping out at $25.2 billion,” Caroline Beteta, president and CEO of Visit California, said at the Central Coast Economic Forecast on Nov. 3. “Agriculture came in at a close second of $20.69 billion.”

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Pacific Coast Business Times: Leaders look for ways to revitalize State Street shopping corridor

Santa Barbara, California – Published 11/10/2017
By Robert Shutt

It is easy to get caught up in the negative aspects of the current reality on State Street in Santa Barbara, but community leaders are recognizing the positives and trying to build on them.

The corridor, part of the economic life blood for the Tri-Counties, is a mixed bag. Lower State Street, near the waterfront and Funk Zone, is doing relatively well, but the further one goes up State Street, the more vacant storefronts there are.

“It is something we are all concerned with, and we should be,” Paul Casey, city administrator for Santa Barbara, said at the Radius Economic Forecast in Santa Barbara on Nov. 1. “This is the heart of our downtown and having a vital, vibrant and active downtown is important to the community and the city from a revenue standpoint and for economic development.”

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Radius Insight: Q3 2017 Market Report

From 2014 to 2016 we experienced the three strongest years of commercial sales on the South Coast since Radius began recording market activity in 1998. In fact 2014’s record 103 transactions were nearly matched by last year’s 101. And despite the fact that dollar volume dipped last year to $366 Million versus $437 Million and $439 Million in 2014 and 2015 respectively, 2016 was still a strong year by any standard.

Enter 2017 and, while we are on track for another strong year, we do appear to be in a bit of a transition period (call it transformation?) with some divergent storylines emerging, particularly involving industrial and retail properties in the downtown area…

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South Coast Leasing Summary

Santa Barbara’s office vacancy rate remained stable with a slight decrease from 5.8% in the second quarter to 5.6% during the third quarter. The majority of vacancies remain below the 3,000 sq. ft. range, with leasing activity skewing heavily to smaller spaces: 48 new leases involving spaces under 3,000 sq. ft. over the past three quarters, versus just 18 new leases for spaces over 3,000 sq. ft. The largest lease during that time period was at 425 N. Milpas St. for 9,200 SF. But perhaps the most noteworty activity came in Q2 when LogicMonitor gobbled up more than 20,000 sq. ft. at 820 State St. (which includes 5,800 SF of former retail space on the first floor). The company is vacating 5,800 sq. ft. at 12 E. Carrillo St…

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South Santa Barbara County Multifamily Summary

South County multifamily sales have continued this year well behind 2016’s extremely brisk pace (there were a record 42 sales of 5+ unit properties last year), and the only reason we are not seeing more is pure lack of inventory. The trend of historically low availability continued through the end of Q3 2017, while demand remains high for apartments particularly in Santa Barbara and Goleta. Still, some sellers are beginning to loosen up on their holdings as they see we remain in a seller’s market…

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