edhat: Santa Barbara South Coast Commercial Real Estate Sets Record at $361 Million

This marks the strongest performance recorded in the first quarter. Despite the record number, the largest came from two deals: first, the $235 million Tech Park @ Goleta portfolio and second, the $104 million sale of the former QAD headquarters.

Tech Park @ Goleta portfolio

The Goleta Tech Park was the largest contributor, with a $235 million sale of the 17-building portfolio to Praelium Commercial Real Estate.

The deal covered 733,497 square feet and includes a mix of office, industrial, and research and development space, with pricing translating to about $320 per square foot.

The transaction stands as the largest non-hotel commercial deal ever recorded on the South Coast.

The property was acquired in phases during the late 2010s and early 2020s by Majestic Asset Management.

This is a five-building complex located along Hollister Avenue, Castilian Drive, Cremona Drive, Bollay Drive, and Ward Drive, where the properties average approximately 41,000 square feet.

Even though some of the buildings were built in 1959, the portfolio has been well updated through new branding and tenant improvements.

The Post Montecito Sale

The other significant deal that stands out is the $56 million purchase of The Post in Montecito by Asana Partners. This shopping center, situated on East Cabrillo Boulevard, is 100% occupied and boasts an attractive tenant mix within one of the best coastal locations in the area.

Without taking into account these major deals, the entire market shows signs of moderation. In total, there have been 26 transactions worth just shy of $70 million, according to the Radius Group report.

This is certainly better than the performance of the same period last year, when the numbers amounted to 12 deals worth around $34 million.

The deal at Tech Park is higher than the previous milestone made by the QAD HQ deal in 2022.

Overall, Q1 2026 has become the most impressive quarterly figure ever recorded despite the ongoing selectivity of deals.

In terms of leasing performance by sector there were some improvements. The office segment has seen vacancy rates fall to 9.2% in Santa Barbara and 7.9% in Goleta due to demand for larger and finished offices that used to be leased to tech companies.

Leasing was slow since demand was for smaller spaces, while large tenants had many options.

The retail sector maintained its dominance with 15 leases signed in 85,000 square feet of space, with a vacancy rate of 3.2%.

The prime areas of Montecito and Funk Zone still charged higher rents. Meanwhile, vacancy rates on State Street dropped from 48% to 30%.