Mid-Year Report 2019
COMMERCIAL SALES: Transactions are down, dollar volume holds steady.
Dollar volume of commercial sales (excluding hotels) at midyear was on par with the prior 5-year average. On the other hand, the number of sales transactions was well below the recent historical norm. The 29 sales to date is the lowest midyear count since 2012, and is even fewer than the first half of last year in the wake of two natural disasters.*
The office sector generated 78% of the total commercial volume, driven by a handful of high-value transactions in Goleta and Santa Barbara, and is on track to set a new annual high mark for dollar volume. The largest sale to date was CenCal Health’s purchase of the 60,225 sf building at 4050 Calle Real in Santa Barbara for its own use for around $30 million. Yardi Systems purchased 420 S Fairview Ave in Goleta, a 71,621 sf class A office building, for more than $20 million with plans to eventually occupy the building. In the second quarter, the 19,334 sf building at 800 Miramonte Dr on “TV Hill” in Santa Barbara was purchased by an investor. All three of these high-value sales were off-market transactions. To date, off-market transactions have represented 48% of sales transactions, which is consistent with the ratio in recent years. Continue to the full report