Editor’s note: An earlier version of this story reported that Forever 21 was leaving its downtown location later this year, based on a report from Hayes Commercial Group. The property owner has informed Noozhawk that the Hayes report was incorrect, and that the company recently signed a three-year extension to its lease for the 901 State St. spot.
BizHawk is published weekly, and includes items of interest to the business community. Share your business news, including employee announcements and personnel moves, by emailing news@noozhawk.com.
By the numbers, the city of Santa Barbara has some of the highest office and retail vacancy rates since 2009, but there is good news with many new businesses setting up shop.
According to Hayes Commercial Group’s latest report, Santa Barbara has an office vacancy rate of 6.5 percent, the highest since 2009. There are about 90 spaces of 1,000 square feet or more, the highest single amount ever, including three downtown spaces bigger than 10,000 square feet.
Retail also continues to face challenges. There are currently about 30 vacancies on State Street, between Sola and Gutierrez streets, which is a 12.9-percent storefront vacancy rate.
In positive news for State Street retail, many new businesses are heading downtown, including the escape room House of Clues, which is going inside the former Aaron Brothers at 601 State St., and Obbi’s Bistro taking over the former Palazzio at 1026 State St., according to Hayes. Forever 21 recently decided to extend its lease with the property owner for another three years.
In an unusual trend, owner-user buyers are on the rise, with 11 of 16 of this year’s South Coast sales purchased by owner-users.
CenCal Health purchased 60,225 square feet at 4050 Calle Real, in an off-market sale. In Carpinteria, S&S Seeds purchased a 44,250-square-foot bluff-top building at 6155 Carpinteria Ave. Both buyers were long-time tenants in the buildings they purchased, according to Hayes.
“The current rally by owner-users is unprecedented, and therefore its duration is difficult to predict,” the Hayes report states. “That local businesses and nonprofits are feeling the confidence to buy their own real estate is a positive sign for our economy. Meanwhile, evidence is mounting that investors have shifted down a gear from the levels that drove the market to new heights in recent years.”
Other commercial real estate news for the South Coast includes Sprouts leasing the former Trader Joe’s and PetSmart locations at 19 S. Milpas St. and 29 S. Milpas St.
The Beachcomber of Crystal Grove has leased the former East Beach Grill space at 1118 E. Cabrillo Blvd., in the city’s Cabrillo Arts Pavilion and Bathhouse building currently being renovated.
The former Cloud 10 trampoline gym, 187 S. Turnpike Road, is now Fitness 19 and nearby, a Starbucks is set to go into a new building at the corner of Turnpike and Calle real.
Cottage Named Top Business
The Solvang Chamber of Commerce has named Santa Ynez Valley Cottage Hospital the 2019 Valley Community Business of the Year .
“On behalf of our staff, I am thrilled to accept this award for Santa Ynez Valley Cottage Hospital,” said Wende Cappetta, SYVCH Vice President, at a recent event.
“It’s a privilege for us to serve this community and to provide medical excellence close to home for all who live, work and visit the Valley.”
The not-for-profit Santa Ynez Valley Cottage Hospital at 2050 Viborg Road provides outpatient surgical services, inpatient care, comprehensive imaging on-site laboratory, cardiopulmonary rehabilitation, physicians specialty clinic and 24-hour emergency services.
— Noozhawk staff writer Joshua Molina can be reached at jmolina@noozhawk.com. Follow Noozhawk on Twitter: @noozhawk, @NoozhawkNews and @NoozhawkBiz. Connect with Noozhawk on Facebook.
