So, retail is dead, huh?

Not according to the latest data provided by Santa Barbara’s top commercial real estate brokers.

Santa Barbara is experiencing a bit of a resurgence in retail, driven by four big athletic-wear leisure stores headed to State Street and Coast Village Road.

On State Street, Vuori is opening at 636 State St., the former site of the Verizon store and Johnny’s Greek Deli before that. Crews are currently working on the interior.

Alo Yoga just leased the site at 821 State St.

Venture Apparel signed a lease in the first quarter of 2024 and just opened at 428 State St.

On Coast Village Road, national beach fashion chain Faherty Brand signed a lease at 1155 Coast Village Road.

The state of State Street appears to be the biggest story, with retail spaces getting leased at higher rates than usual.

According to Hayes Commercial Group, downtown retail leasing on State Street, “contrary to appearances,” is booming.

“By midyear, 14 leases were signed along the 400 to 1300 blocks, which matches the average annual count for the past five years,” according to Hayes. “The storefront vacancy rate on the corridor decreased to 12.4%, which amounts to a 12% reduction of vacant storefronts over the past year.”

Who needs a State Street Master Plan?

Athletic leisure stores are finding their fit all by themselves.

“Athleisure” clothing remains a booming retail phenomenon, and the two biggest State Street leases so far this year are tenants that sell a lot of spandex,” Hayes states in its second-quarter report.

Radius Commercial Real Estate noted that all of the recent leases have been for spaces totaling less than 3,000 square feet.

“As the city navigates the complexities of the State Street Master Plan, the private sector continues to push forward in downtown Santa Barbara, with five additional retail leases secured on State Street during Q2,” according to Radius. “With more opportunities for State Street frontage, businesses are likely to consider relocating for increased visibility, expressing optimism for the revitalization of downtown.”

Much like commercial office space, there’s not a lot of need right now for big retail spaces.

“The corridor’s many large vacant storefronts continue to cast a shadow over the market, and adaptive reuse projects remain viable for only a limited number of properties,” according to Radius.

Asking rents for retail space in Santa Barbara averaged about $4.22 per square foot gross, while achieved rates increased from $3.44 to $3.60 per square foot, according to Radius.

Santa Barbara City Councilwoman Meagan Harmon said State Street’s resurgence is a sign of things to come.

“The influx of new retailers on State Street in particular is, I believe, a harbinger of exciting things to come for our downtown,” Harmon said. “While I can’t pretend to understand the complex alchemy that drives the brick-and-mortar retail industry, I know there is so much potential. Just look at Santa Barbara’s strong reputation as a vacation destination of choice, coupled with a community of locals that is absolutely committed to revitalizing commerce, in the case of State Street, and maintaining its momentum, in the case of Coast Village Road.”

Business leaders said they are pleased with the momentum State Street is building.

“Despite valid concerns about changes in the retail market and declining sales in the area, the arrival of brands like Faherty, Alo and Vuori shows that Santa Barbara remains a highly attractive market,” said Kristen Miller, president and CEO of the Santa Barbara South Coast Chamber of Commerce. “These brands recognize the city’s continued appeal to visitors, driven by its unique charm and vibrant atmosphere. Even as some retailers have faced challenges, Santa Barbara’s ability to draw both locals and tourists creates opportunities for those who can tap into its allure.”

Robin Elander, executive director of Downtown Santa Barbara, said the decline in retail was more than just a Santa Barbara problem.

“We have continued to see a strong number of small and midsize retail businesses open downtown in the last few years with more to come,” Elander said. “There is growing camaraderie and collaboration amongst our retail, food, beverage and commercial real estate community as well as the supportive services and programming to attract locals and visitors downtown that is helping open doors and creating new opportunities.

“More people and businesses are exploring ways to get involved. It’s an exciting time for downtown.”

Harmon added that the answer is in collaboration and working together.

“It’s all hands on deck when it comes to economic development in Santa Barbara, and when we’re all rowing in the same direction, great things can happen,” Harmon said.

Hotel Occupancy on the Rise

Hotel occupancy along the South Coast reached 82% in July and was up 1% from the year prior.

“The Santa Barbara South Coast always shines during the longer days of July, and 2024 was no exception,” Kathy Janega-Dykes, president and CEO of Visit Santa Barbara, said in a statement. “The community benefited from an ideal Independence Day weekend, numerous outdoor concerts and festivals, plus a new professional soccer match at UC Santa Barbara. As schools return and autumn approaches, I remain encouraged that the cache of Santa Barbara remains strong for leisure, business, meetings and wedding travel.”

The average rate for a Santa Barbara South Coast hotel room in July was $399 a night, up 1% from the same month last year. Revenue per available hotel room was $326 in July, increasing 2% compared with the same month last year, according to Visit Santa Barbara.

The data is generated by STR, an independent hospitality data analytics company. It includes hotels located in Santa Barbara, Goleta, Montecito, Summerland and unincorporated Santa Barbara County (between Gaviota and Summerland), according to Visit Santa Barbara.

Farmers Market Moves Sept. 28

The Santa Barbara Certified Farmers Market Association is on the move.

The market is set to move Sept. 28 to the public right-of-way along Carrillo Street between Chapala and Anacapa streets, and State Street between Canon Perdido and Figueroa streets.

The market currently is at the Cota Commuter Parking Lot, but that is the site of the planned new headquarters for the Santa Barbara Police Department.

The market will be open from 8 a.m. to 1 p.m.

Cyclists are required to walk their bikes at the market, according to the Downtown Association.

Etty’s Jewish Deli & Bakery Opens

Etty’s Jewish Deli & Bakery, a kosher-style deli, has opened in downtown Santa Barbara at 524 Chapala St., according to the Jewish Federation of Greater Santa Barbara.

The deli is open from 8:30 a.m. to 3 p.m. Tuesday through Friday.

Due to permitting and security protocols, people will need to become a member and make reservations before visiting the deli, but there is no cost for membership, according to the Jewish Federation of Greater Santa Barbara.

Call 805.957.1115 to become a member and reserve a spot.

“We appreciate reservations made 24 hours ahead, but if you wake up in the morning and want to come in, please phone and we will try to fit you in,” according to its website.