The amount of storefront retail vacancies on State Street “remains concerning,” according to the Q2 report from Hayes Commercial Group.
The vacancy rate between the 400 and 1300 blocks of State Street is 13.7%.
Thrifty Beaches opened recently at 710 State Street. Ghirardelli Chocolate
Company leased 509 State St., a good sign for retail.
“Despite these challenges, there are positive signs: New developments are in the works to provide housing, and owner-driven initiatives to enhance cleanliness, safety and activation are gearing up to help address vacancy,” the report states.
In one of the most recent leases, Caravan by KikiSol, an artisan women’s clothing and travel accessories store, leased 631 State Steet, which was previously leased by Billabong, according to Hayes.
Off State Street, Kickboxers renewed 5,000 square feet at 122 E. Gutierrez St,, and Timber & Wool Floors leased a 3,260-square-foot showroom at 322 E. Cota St.
Goleta Retail Struggling in Parts
According to Hayes, Goleta has a 3.1% storefront vacancy rate, which is “toward the high-end for the city historically.”
The report states that the Fairview & Calle Real intersection has most of the vacancy, about 64%. The report notes the availability of the 10,700-square-foot former Santa Barbara Motorsports showroom at 5995 Calle Real .
The Calle Real Center inked two deals in Q2: Laser Away and Drover’s Doughnuts.
Solvang Restaurant Wins Grant
Cailloux Cheese Shop Solvang is the recipient of a $5,000 grant from the California Restaurant Foundation and the PG&E Corporation Foundation.
This grant is part of a larger $1.1 million charitable contribution from The PG&E Foundation. Nearly 200 restaurants in 29 California counties received grants.
The money will help locally owned companies invest in upgrades, workforce training and other improvements to help the business grow, according to a news release.
Cailloux Cheese Shop is the only restaurant in Santa Barbara County to receive the award.
Kyle’s Kitchen on the Move
Popular locally owned restaurant Kyle’s Kitchen is moving from the Hollister Village Plaza to the Target Shopping Center.
Owner Jay Ferro told Noozhawk that he signed the lease and will move early next year.
Kyle’s has leased two spots in the side of the mall that includes Sam’s to Go, Subway, and Indo China Market.
The center recently changed hands and is currently undergoing a major facade improvement.
Large Commercial Building Sale in Goleta
A local investor has purchased a 42,600-square-foot building at 326 Bollay Drive for $15.8 million, according to Hayes Commercial Group.
It is the South Coast’s largest commercial building sale year-to-date. The property is leased to Redwire Space Enterprises for seven years.
“This property is part of a vibrant ecosystem that continues to shape Goleta’s economic and real estate landscape,” according to Hayes. “The campus is home to a prestigious roster of tenants including Lockheed Martin, Alcon Research, LaunchPoint, and Santa Barbara Imaging Systems, underscoring its reputation as a hub for leading-edge industries.”
The building is Tech Park @ Engage managed by Majestic Asset Management.