Sales return to Earth in Q1
|Highlight Sale: 6267 Carpinteria Ave., Carpinteria The 51,000 SF ocean-front “Venoco Building” sold to a local investor in March. At just under $16.5 million asking price, it’s one of the largest sales of office property in Carpinteria’s history.|
- Bacara price tag keeps total sales volume hospitable
- Leasing: Office market bloated; Industrial inventory tight across South Central Coast
What may seem to have been a somewhat pedestrian performance for first quarter commercial sales at just 14 total (down substantially from Q4 2012’s stellar 35 transactions) was in reality not far off the 15-year average of 16 per quarter. Q1 2013 sales were higher than the 12 recorded in the first quarter of 2012. And thanks to one very large commercial transaction—the sale of Bacara Resort for between $150–$180 million—sales dollar volume was in line with previous quarters. Altogether a decent start to the year.
Leasing activity was a little more noteworthy with 66 direct lease transactions, though we did see vacancy rates creep up across the board with the exception of the industrial sectors in both Goleta and Carpinteria. Carpinteria’s sustained drop in industrial vacancy is unlike any change in vacancy we’ve seen during the past 15 years, falling from 14.4% to 3.3% in just two-and-a-half years.
Other market observations…
- Goleta’s office sector has jumped to double digit vacancy at 12.4%, underscoring the bloated office market across the south Central Coast
- By contrast, availability of industrial space continues to tighten across the region, with vacancy in the low single digits in Santa Barbara, Goleta and Carpinteria.
- Not much change in the market’s coveted retail sector with Santa Barbara vacancy at a low 1.7% and asking rates in turn continuing upward
- Multi-family properties continue to be possibly the hottest buy around with 11 currently for sale and 6 of those in escrow. It’s not uncommon to receive multiple offers over asking price.
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