2023 Q2 Market Report
Our midyear review of South Santa Barbara County commercial real estate is live! Highlights include the below, full report can be accessed here: http://www.hayescommercial.com/wp-content/uploads/2023-Q2-HayesCommercial.pdf
• The number of sales transactions at midyear was 7.5% above the 5-year average. • However, the average price of investment sales was about half the historical norm, due to higher interest rates and underwriting challenges. • South Coast leasing was sluggish through midyear, yielding 115 transactions valued at $65 million, both of which are among the lowest midyear totals of the last 15 years. • Gross absorption of office space was 25% below the 5-year average, and for the first time on record all three market cities have double-digit vacancy. • Retail transaction volume was above the recent historical average, but there were few large spaces leased, and available space has expanded by 23,000 SF since the beginning of the year.