Sales of commercial buildings have plummeted, reaching their lowest numbers on the South Coast since 2011.

“The year ending 2023 came to a rather sobering close as sales of commercial property on Santa Barbara’s South Coast remained lower than average compared to previous year-end data, continuing the downward slide we’ve been riding since a record-breaking 2022,” Radius Commercial Real Estate reported in its just-released 2023 report.

There were 129 sales in 2022 and 72 sales in 2023. The sales volume of the 2022 sales totaled $615 million, while the 2023 sales was $239 million.

The fourth-quarter sales in 2023 were the softest fourth-quarter sales in four years, according to Radius.

“We attribute this dramatic drop in activity to the market catching up to interest rate hikes, which began in late 2022 and persisted into 2023, having a lag effect that is now reflective in our market data,” the report states.

Retail leases also slowed down.

In the fourth quarter of 2023, five retail spaces leased, down from 20 in the third quarter of the year, according to Radius. Three of those five were new restaurants, including Cafe la Fonda, Best BBQ and Indian Tandoori Kingdom.

Radius said retail leasing was nearly stagnant at the end of 2023, and the overall
Santa Barbara retail vacancy rate shifted from 2.1% in the third quarter to 2.5% in the fourth quarter.

Santa Barbara’s office vacancy rate ended 2023 at 9.9%. In the third quarter, it was 13.3%.

Radius reported that the Macy’s building in the Paseo Nuevo mall is no longer on the market for lease as tech-office space.

Santa Barbara Taxes Down

The City of Santa Barbara received $7.2 million in sales tax revenue during the second quarter of its fiscal year. The number was 8.4% below budget.

“This result reflects softening economic activity amid a persistently high-inflation environment,” the city said in a statement.

For fiscal year 2024, the city’s sales tax revenue budget is $30.6 million.

Transient occupancy taxes are also down by 4.2% so far this fiscal year.

The city collected $1.5 million in hotel bed taxes for January and has collected $19.1 million overall, according to the city. Of that total, about $17.7 million came from hotels and $1.4 million from short-term rentals.

The city expects to take in about $33 million in bed taxes this year, which ends June 30.

Pura Luna Apothecary Closes

Pura Luna Apothecary in Santa Barbara announced in January that it would be closing Thursday, after six years of service.

The retail store, at 633 Chapala St., specialized in herbal medicinals and beauty products, and gifts were made in house or by other women-owned/minority-owned ventures, according to the company’s website.

The company held a 50% of sale on Thursday, its last day.

“Please continue to follow, join our newsletter and join us on the journey ahead,” the company said on Instagram. “This ending is the start of a new BEGINNING. When one door closes many more open. Will you open that door with us? We hope so!”

Dianne Duva Now a Managing Partner at Arlington Financial Advisors

Certified Financial Planner Dianne Duva, a founding partner of the wealth management firm Arlington Financial Advisors in Santa Barbara, has been named the company’s new managing partner, according to a news release.

Duva has worked at Arlington Financial Advisors, 100 E. De la Guerra St., since the firm launched in 2010. She advises high-net-worth families, business owners and women in transition.

She also co-hosts a weekly radio show called Money Talk on AM 1290 radio.

Arlington manages assets for nearly 400 local and national clients.

In addition to Duva, Joseph Weiland, Arthur Swalley, R. Wells Hughes, John Lorenz and Cody Makela are partners.

Tractor Supply Opening in Lompoc

Tractor Supply plans to open in the old Mervyn’s building at 1600 North H St. in Lompoc, near Big 5 Sporting Goods, according to KSBY News.

Tractor Supply carries a variety of products, including lawn mowers, gates, pet food, kennels, shoes, gear, heating supplies and, of course, tractors.

The company, which expects to open in June, has stores in Buellton, San Luis Obispo, Nipomo and Paso Robles.