Santa Barbara Commerical Real Estate

The Commerical Real Estate market in Santa Barbara is healthy as demand for retail and office space continues to increase.  For your search for commerical property in Santa Barbara, contact Daniel Zia.  His expertise and extensive network in the commerical market will enable you to make a confident, well-informed decision.  Allow the ZiaGroup team to provide you with detailed investment offerings, current market conditions and helpful recommendations in aiding your eventual decision.

Commerical Real Estate Update: 2007

Commerical real estate markets remained strong throughout 2006.  Vacancy rates dropped as leasing and sales activity firmed, and both lease rates and selling prices increased.  Nearly all regional office market vacancy rates in the South Coast have fallen below 6% for the first time since 2001.

Commerical development continued to be virtually non-existent, with approximately 20,000 square feet built on the entire South Coast.  Continued demand with virtually no supply is contributing to higher lease and sales rates. Overall vacancy should remain tight with lease rates increasing slightly in 2007.

After a number of years of volatility, the Santa Barbara office market vacancy remained near a historic low of 2.8% in 2006.  The average asking lease rate on a gross basis (including NNN) increased by more than $0.25 to $2.52 per square foot. The Goleta office market hovered around 5% vacancy and the average gross office lease in Goleta remains in the range of $1.55 to $1.75 per square foot gross.

Carpinteria has had a very successful office market with a vacancy rate dropping from 22% to 12.9% from 2005 to 2006 with an average lease rate at $1.44 per square foot gross.  Vacancy rates are expected to drop further to below 10% and for lease rates to increase slightly.

The Santa Barbara retail market has had the most dramatic price increase across all market segments.  Higher average rates were principally pushed by soaring lease rates along State Street.  Historically, lease rates greater than $3.50 per square foot gross could only be obtained on space located in an around the Paseo Nuevo area.  Recently rates exceeding $4.00 per squre foot gross are now extending up to the 1200 block and down to the 400 block of State Street.  Paseo Nuevo rents can exceed $8.00 per square foot gross.  Look for 2007 to be a transition year for many buildings on State Street, as owners look for higher rates and better tenant credit.  

Courtesy of the 2007 Santa Barbara County Real Estate & Economic Forecast 

Your Santa Barbara Commerical Real Estate Realtor

Daniel Zia, CEO and Founder of the ZiaGroup, is the Santa Barbara Commerical Real Estate Realtor.  Contact Daniel to gain more insight into the summary of economic information above.  The ZiaGroup team invites you to  use our Santa Barbara Commerical Real Estate MLS search tool to check out the properties currently on the market in the Santa Barbara.  You may also be interested in our 2007 Santa Barbara Economic Outlook Summary or the Santa Barbara Quick Stats on Current Housing Trends .