Santa Barbara’s State Street is showing some promise.

Five big deals went down along the corridor in the third quarter of the year.

Clothing and gifts store Courtney Burke opened at 931 State St., and Canvas Boutique moved in at 1307 State St., according to Hayes Commercial Group.

Tamsen Gallery found a home at 1309 State St., moving from the 900 block.

On the 1200 block, Namaste Indian Cuisine subleased 1218 State St.

Casa Agria Ale is planning to open this month at 418 State St.

“Retailers are thinking smaller, and leases of large retail spaces have become rare. In fact, no leases over 5,000 square feet have been signed to date in 2024, and the average leased space was a record-low 1,825 square feet,” according to Hayes.

In addition, there are a lot of rumors circulating about Cost Plus World Market.

Peter Lewis, the owner of the property at 610 State St., said Cost Plus signed a three-year deal to stay at the site until 2027.

However, it’s not that simple. He has reserved the right to sign a new tenant if he chooses, as long as he gives Cost Plus appropriate notice. The listing for the property has circulated in commercial real estate circles, creating a buzz in the business community.

“At this time, Cost Plus is there, and I have no intentions of removing them,” Lewis said. “Right now, they are the tenant for what appears to be the next three years, but it doesn’t mean that we aren’t testing the market to see what, if any, other options exist.”

A quick cruise through Cost Plus on Thursday afternoon showed workers revealing an array of Christmas decorations and advent calendars as well as the usual chocolates, candy and crafts.

Overall, South Coast retail leasing transactions year to date are up 16% compared with the five-year average as the sector continues to recover from the COVID-19 pandemic, according to Hayes.

“Downtown Santa Barbara is seeing significant reinvestment, with new businesses opening and bringing fresh energy to the area,” said Robin Elander, executive director of the Downtown Association. “The increased activity along State Street and surrounding areas underscores a vibrant and promising future for the growth of the district.”

Golf Swings Into Santa Barbara

Golf simulators are swinging into downtown.

SwingPath Golf Club opened at 417 Santa Barbara St. The “experiential retail” trend, according to Hayes, is an emerging niche.

The business says on its website that it’s “Santa Barbara’s premier indoor golf club.”

The simulators use Trackman technology, enabling guests to practice and ultimately “reduce your strokes,” the website states. “Play hundreds of iconic courses from around the world and experience the evolution of golf … indoors.”

Hayes says the Golf Lounge will open in early December at 2840 De la Vina St. in Santa Barbara in collaboration with Validation Ale’s new uptown location.

Montecito Gets New Tenants

Belrose Jewelers opened in Montecito at 1268 Coast Village Road, the former home of Baske, according to Hayes.

Clothing store Wunderkind leased space at 1147 Coast Village Road.

McConnell’s Expands

There’s no escaping McConnell’s — in and out of Santa Barbara.

The Santa Barbara ice cream shop has opened a new location too far to drive to, but a fairly easy trip on the Amtrak train.

The shop is opening at River Street Marketplace in San Juan Capistrano, according to Patch.com.

McConnell’s has two locations on State Street. Its scoops are served at 728 State St. and in the Funk Zone at 120 State St., Suite B. It’s also served at 201 W. Mission St. by the business Mission Street Ice Cream.