Q1 2018 Commercial Real Estate Review
Commercial sales slowed considerably in the first quarter of 2018, which is not surprising given the physical, economic, and psychological impact of the Thomas Fire and Montecito debris flow. Q1 produced 13 commercial sales valued at $58 million, about half of the volume of the same quarter last year.
The lingering question is what effect the fire and debris flow will have on commercial property sales in Montecito. Fortunately, considering the scale of the disasters, physical damage to commercial property was relatively minor. However, economic damage was immense due to road closures, evacuations, and poor air quality. On the sales side, there weren’t any Montecito properties brought to market in Q1, but one notable sale was completed: the 5,250 sf retail/office property at 1101 Coast Village Rd occupied by Compass Realty was bought by a 1031 Exchange investor for $7.7 million.
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