Radius Group Commercial Real Estate has announced findings for Third Quarter 2007 commercial real estate leasing vacancy and pricing. The Radius Group South Coast Commercial Vacancy Update covers the industrial, retail and office markets in Santa Barbara, Goleta and Carpinteria. Overall, commercial markets on the South Coast saw slightly less activity in the third quarter of 2007 compared with 2006. The most notable third quarter sale in the market was the sale of The Devereux Campus in Goleta by The Devereux Foundation to the Regents of the University of California.
The most notable lease during the third quarter, and the largest office deal of 2007, was the sub-leasing of 51,000 square feet at 6500 Hollister Avenue to Citrix Online by Global Brand Marketing Inc.(GBMI).
“Radius Group represented GBMI in their needs to dispose of their headquarters in Goleta and to find them new office space in Carpinteria at 6410 Via Real consisting of over 26,000 square feet,” said Brian Johnson, Sales Agent at Radius Group. “Overall, the deal accounted for over 77,000 square feet of office space moving off the market. This helped drop the office vacancy rates in Goleta to under 5% and also slashed Carpinteria’s office vacancy rate in half.”
In the Report, two key factors - price per square foot and vacancy rate (the percentage of non-leased space) – are analyzed across each of the three commercial real estate categories: retail, office and industrial.
Report highlights:
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Industrial |
Office |
Retail |
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Due to lack of available space, no industrial leases in Santa Barbara city limits were completed in Q3
Even with a lease of almost 39,000 SF to SAFE, LLC, the largest currently available industrial space in Goleta is 6775 Hollister, master leased by DuPont, with over 80,000 SF available. |
The Carpinteria office market has seen a sharp decline in vacancy rates, dropping to 6.2%
The largest office lease was the 50,900 square foot space at 6500 Hollister Avenue in Goleta, leased to Citrix Online. |
Price per square foot in the Santa Barbara retail market has dropped from $3.99 per square foot in the second quarter to $3.79, with vacancy rate up and currently at 1.5%. This was due mainly to properties outside of the core State Street locations coming on the market. |
As for the future, Radius Group predicts a robust fourth quarter for 2007.
“We expect to see a strong finish in 2007 in all sectors of the commercial real estate market,” said Brian Johnson, Sales Agent at Radius Group. “Fortunately, the commercial market continues to remain insulated from potentially negative effects of the current residential market and the recent ‘credit crunch’.”
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