Noozhawk: Commercial real estate sag

Commercial real estate sales stayed flat in the second quarter of 2018, but dropped significantly from a year ago at the same time, according to Radius Group.

After the second quarter of 2017, there were 49 commercial real estate sales. After the first half this year, there were 29 sales.

In terms of dollars, the total Q2 sales volume was approximately $50.2 million compared to $69.5 million last year, according to the quarterly Radius Group report.

The largest transaction of the quarter was at 3045 De La Vina St, an 18,000-square-foot office building that shares a parking lot with Trader Joe’s that sold for $9.5 million.

Radius says that willing investors are on the sidelines with plenty of cash to invest, but politics, rising interest rates and the current bull market has made them more cautious.

“We are seeing an influx of LA buyers looking for shelter in Santa Barbara real estate,” Radius’ Q2 report states. “This should continue as long as prime, long-term investments are sold and the sellers are faced with the decision to pay their substantial capital gains taxes or exchange and face the music another day. We also are still seeing prime, well located, trophy properties trading to long term holders paying cash for these properties.”