Sunday, June 26 , 2016, 8:18 am | Fog/Mist 62º

  • Follow Noozhawk on LinkedIn
  • Follow Noozhawk on Pinterest
  • Follow Noozhawk on YouTube


Pacifica Q1 Report Predicts Slow Growth in Commercial Real Estate

Demand remains low and the average lease rate dips to $2.34 modified gross

While many Santa Barbara commercial real estate markets gradually improved through the first quarter of 2012, there’s an abundance of midsize office space, according to Pacifica Commercial Realty’s first quarter report.

Santa Barbara professional office space has reached a five-year high of 5.8 percent vacancy, which may increase if the Union Bank and Santa Barbara Bank & Trust merger goes through, Pacifica Vice President Mark Mattingly said. SBB&T is rebranding and it’s uncertain whether it will retain all of its downtown Santa Barbara and Goleta locations.

“What I think is interesting is the increasing number of vacant office space in downtown Santa Barbara, which has always been solid, and typically had a low vacancy rate,” said Mattingly, adding that there are several spaces between 4,000 and 10,000 square feet. “There’s more space than demand, and does that tell you there’s softness in financial services or the professional service sector? Maybe.”

The Goleta office market improved slightly as the vacancy rate decreased from 10 percent to 9.7 percent and medical company ConMed moved into Network Hardware Resale’s former 15,000-square-foot space at 26 Castilian Drive.

But the landscape will change as Decker’s Outdoor Corporation begins its 250,000-square-foot campus construction at the Cabrillo Business Park

“The tech sector is our economic engine here on the South Coast,” Mattingly said. “When we see the tech sector improving, it bodes well for businesses in our community.”

Pacific Operators Offshore leased 11,600 square feet at 1145 Eugenia Place, and the Carpinteria office market vacancy rated dropped from 20.9 percent to 15.7 percent. The 24,000-square-foot location that Microsoft formerly occupied is the largest vacant space on the market.

The Carpinteria industrial market vacancy rate dropped from 8.4 percent to 4.7 percent as NuSil Silicone Technology moved into a 46,000-square-foot space on Cindy Lane. Santa Barbara’s industrial market remained strong at a 0.8 percent vacancy rate while the Goleta industrial vacancy rate increased from 4.2 percent to 5 percent.

Santa Barbara can expect continued slow growth, Mattingly said.

“Pretty much every sector of commercial real estate is slowly recovering from the worst drubbing most of us can remember,” he said.

Noozhawk business writer Alex Kacik can be reached at .(JavaScript must be enabled to view this email address). Follow Noozhawk on Twitter: @noozhawk, @NoozhawkNews and @NoozhawkBiz. Connect with Noozhawk on Facebook.

Reader Comments

Noozhawk's intent is not to limit the discussion of our stories but to elevate it. Comments should be relevant and must be free of profanity and abusive language and attacks.

By posting on Noozhawk, you:

» Agree to be respectful. Noozhawk encourages intelligent and impassioned discussion and debate, but now has a zero-tolerance policy for those who cannot express their opinions in a civil manner.

» Agree not to use Noozhawk’s forums for personal attacks. This includes any sort of personal attack — including, but not limited to, the people in our stories, the journalists who create these stories, fellow readers who comment on our stories, or anyone else in our community.

» Agree not to post on Noozhawk any comments that can be construed as libelous, defamatory, obscene, profane, vulgar, harmful, threatening, tortious, harassing, abusive, hateful, sexist, racially or ethnically objectionable, or that are invasive of another’s privacy.

» Agree not to post in a manner than emulates, purports or pretends to be someone else. Under no circumstances are readers posting to Noozhawk to knowingly use the name or identity of another person, whether that is another reader on this site, a public figure, celebrity, elected official or fictitious character. This also means readers will not knowingly give out any personal information of other members of these forums.

» Agree not to solicit others. You agree you will not use Noozhawk’s forums to solicit and/or advertise for personal blogs and websites, without Noozhawk’s express written approval.

Noozhawk’s management and editors, in our sole discretion, retain the right to remove individual posts or to revoke the access privileges of anyone who we believe has violated any of these terms or any other term of this agreement; however, we are under no obligation to do so.

Support Noozhawk Today

You are an important ally in our mission to deliver clear, objective, high-quality professional news reporting for Santa Barbara, Goleta and the rest of Santa Barbara County. Join the Hawks Club today to help keep Noozhawk soaring.

We offer four membership levels: $5 a month, $10 a month, $25 a month or $1 a week. Payments can be made through PayPal below, or click here for information on recurring credit-card payments.

Thank you for your vital support.

Daily Noozhawk

Subscribe to Noozhawk's A.M. Report, our free e-Bulletin sent out every day at 4:15 a.m. with Noozhawk's top stories, hand-picked by the editors.

Sign Up Now >