JP Morgan Chase has leased a large space at 1200 State St. in Santa Barbara.
JP Morgan Chase has leased a large space at 1200 State St. in Santa Barbara. (Joshua Molina / Noozhawk photo)

Nothing’s selling.

Commercial buildings are struggling in the market.

“The third quarter of 2023 marked another quarter of declining activity; in fact, it was the softest quarter on record since 2020 — and the most telling — clearly illustrating many of the trends we’ve been witnessing during recent quarters and showing the market’s true colors,” according to Radius Commercial Real Estate’s third-quarter report.

It was the lowest number of sales for a quarter since 2020 — just 14, worth $33.5 million. The average number of third-quarter sales in the past years was 27 and about $105 million.

The ones that sold were apparently also overpriced at listing.

The average discount from asking price for the 14 sales was 14%, according to Radius’ report.

“Half of Q3’s transactions sold at an average price drop of 24% — and in some cases as high as 30 to 40% — below their original asking prices,” the report states.

Some of the properties were on the market for more than a year.

“These stats are sobering signs of a turning market and environment in which the gap between sellers’ and buyers’ expectations is narrowing,” according to the report.

There’s also an unusual number of apartments for sale.

In Santa Barbara, there were 10 multifamily properties for sale ranging in size from six to 75 units, according to Radius. The price per unit ranges from $306,818 to $510,000 per

“Typically, we do not see this much inventory on the market at one time,” Radius stated.

There are a few bright spots with leases. The South Coast saw 21 new leases in the third quarter, up from 14 in the second quarter. The largest retail lease was to JP Morgan Chase at 1200 State St.

“While the recent shakeup in the banking industry triggered the lease, it was exciting news to see the international bank retain the building formerly occupied by First Republic, especially given recent large vacancies by US Bank and Bank of the West just a few blocks down State Street,” Radius said.

Smaller spaces remain the most active with deals ranging from 530 square feet to about 15,000 square feet.

Los Arroyos in Montecito Gets Remodel

Mexican food restaurant Los Arroyos has reopened after a short closure.

“The Montecito restaurant has had a complete makeover,” Tony Arroyo said. “I am very excited to share with the community a long-awaited sit-down bar and two large TV screens flanking a display of tequila and other drinks.”

Arroyo told Noozhawk columnist Judy Foreman that there’s new seating and flooring, and a noise-reduction ceiling.

Fairview Shopping Center Lease Announced

Commercial real estate broker Caitlin Hensel has made a deal in the Fairview Shopping Center in Goleta.

The former MedCenter was leased to Complete Care at Home, a boutique in-home care service including hospital discharge, respite care, dementia care, ambulatory and non-ambulatory transportation, Hensel said on her Instagram page.

The company has locations in Santa Barbara and Solvang. 

“We had the pleasure of representing all parties in this transaction,” said Hensel, of Hayes Commercial Group.

Dang Burger Opening in Carpinteria

Dang Burger started as a pop-up. This weekend, it will open a new restaurant in Carpinteria.

“We’re just stoked to be serving burgers n fries in Carp,” the company told Noozhawk. “We like to use ingredients we’re proud of and make burgers we’d like to eat.”

The restaurant, at 5080 Carpinteria Ave., has partnered with Sunburst Wine Bar.

“We appreciate you all being here with us as we take this final step into the burger abyss, never to return,” the company wrote on Instagram. “Thanks for all the support over the years, and we’re stoked to finally open the doors.”