Pacific Coast Business Times: Radius releases Q2 report for Santa Barbara

Radius Group, a market share leader in commercial real estate sales and leasing in Santa Barbara’s South Coast, released its report for the second quarter on July 28.

According to the report, the second quarter of 2025 saw a total of 20 transactions, bringing the year-to-date tally to 32 sales across Santa Barbara, Goleta, Carpinteria and Summerland. Second quarter sales volume reached $74.7 million, more than double the $37.1 million recorded during the second quarter of 2024.

Year-to-date figures now total $108.7 million, slightly outpacing 2024 but still trailing the record-setting activity of 2022, when pent-up, post-pandemic demand and historically low interest rates fueled over $406 million in mid-year sales.

The second quarter was carried by a slew of big moves, including the off-market sale of Storke Pointe Business Center at 326 Bollay Dr. in Goleta, which closed at $15.8 million. The area is fully leased to Redwire Space Enterprises, which expanded in mid-2024 as part of its West Coast aerospace and defense growth strategy.

Downtown Santa Barbara also saw a headline transaction as Music Academy of the West acquired the former Forever 21 flagship at 901 State St. for $10 million.

In regard to leasing activity, retail vacancy in Santa Barbara continued to climb in the second quarter. While the market saw improved leasing activity — with 18 new leases and 32,301 square feet of positive absorption surpassing first quarter totals — the growing inventory of large available retail spaces remains a key concern.

Finally, multifamily investments have seen a clear slowdown. According to the report, in the first half of 2025, there were just 11 total sales of multifamily properties 5+ units in size, compared to 34 total for all of 2024, which averaged 8.5 per quarter.

Sales volume January through June 2025 amounted to roughly $40.5 million, well below the $146 million recorded for all of last year. Buyer interest remains, but deals have become more fragile — inspections, insurance quotes and property condition need to align perfectly for a sale to close, according to the report.