Pixel Tracker

Friday, January 18 , 2019, 2:17 pm | Fair 63º


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.

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 using a credit card, Apple Pay or Google Pay, or click here for information on recurring credit-card payments and a mailing address for checks.

Thank you for your vital support.

Become a Noozhawk Supporter

First name
Last name
Select your monthly membership
Or choose an annual membership

Payment Information

Membership Subscription

You are enrolling in . Thank you for joining the Hawks Club.

Payment Method

Pay by Credit Card:

Mastercard, Visa, American Express, Discover
One click only, please!

Pay with Apple Pay or Google Pay:

Noozhawk partners with Stripe to provide secure invoicing and payments processing.
You may cancel your membership at any time by sending an email to .(JavaScript must be enabled to view this email address).

  • Ask
  • Vote
  • Investigate
  • Answer

Noozhawk Asks: What’s Your Question?

Welcome to Noozhawk Asks, a new feature in which you ask the questions, you help decide what Noozhawk investigates, and you work with us to find the answers.

Here’s how it works: You share your questions with us in the nearby box. In some cases, we may work with you to find the answers. In others, we may ask you to vote on your top choices to help us narrow the scope. And we’ll be regularly asking you for your feedback on a specific issue or topic.

We also expect to work together with the reader who asked the winning questions to find the answer together. Noozhawk’s objective is to come at questions from a place of curiosity and openness, and we believe a transparent collaboration is the key to achieve it.

The results of our investigation will be published here in this Noozhawk Asks section. Once or twice a month, we plan to do a review of what was asked and answered.

Thanks for asking!

Click Here to Get Started >

Reader Comments

Noozhawk is no longer accepting reader comments on our articles. Click here for the announcement. Readers are instead invited to submit letters to the editor by emailing them to [email protected]. Please provide your full name and community, as well as contact information for verification purposes only.

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 >

Meet Your Realtor Sponsored by Village Properties

Photo of Elizabeth Wagner
Elizabeth Wagner
"I typically do whatever it takes to properly expose the property and get it out to the widest possible audience."

Full Profile >