More shops on horizon?

By RAY ESTRADA — Nov. 27, 2009

Even if holiday sales are low again this year, South Coast commercial real estate trends point to more new businesses leasing space in anticipation of a rebound soon.

“We’ve seen some activity at the end of the third quarter as well as some at the beginning of the fourth quarter,” said Brian Johnson, Radius Group commercial real estate sales agent. “We might even see some big deals at the start of the first quarter of 2010.”

For example, the Camino Real Marketplace announced this week that Ross Stores, the nation’s second-largest “off-price”retailer, has signed a lease for a 35,000 square feet of retail space with an opening planned for the spring. Ross will occupy the space vacated by the defunct Linens & Things.

“I am pleased that even with the current economic conditions such as they are, Ross Stores was extremely interested in signing the largest retail lease on the South Coast for this past couple years,” said Camino Real Marketplace managing partner Mark Linehan in a news release.  “This investment in our community will add to the diversity of retail stores and community services we offer here at the Marketplace, and I’m sure the City of Goleta will be pleased with the additional sales tax revenues.”

On Santa Barbara’s State Street, Johnson said triple-net leases aren’t what they were just a few years ago. “Landlords have had to make some big concessions,” he said. “But that’s the ebb and flow of the market.”

From Santa Barbara’s waterfront to upper State Street, the scene this holiday season is a mixed bag with such stores as the Big Dog outlet shop vacant and Fess Parker’s unfinished hostel now white-washed and roof tiled, but not yet open.

The 400 block of State Street sees the closure of the 411 Market and Lettuce Be Frank only to be replaced by a boutique and another restaurant. Across the street is the India Bazaar, which appears to allow patrons to dine while shopping for furniture.

The 500 block shows some still-empty storefronts, such as where Retroville and Brick’s once operated. A planned Brazilian restaurant in the Brick’s space still hasn’t opened.

Further up State Street is another new boutique, Katwalk, where Rocks restaurant once operated.

On the next block up are still a few more empty storefront where the Blue Bee jeans shop moved from and where the Global Feet left some time ago.

While the recession is far from completely over and some store fronts remain vacant  for now on State Street – considered the South Coast’s largest commercial district  – Johnson relayed a bit of optimism for the coming year as far as pending real estate deals.

“Companies with the where with all to lock into good rates are doing so now,” said John Thyne, of Goodwin & Thyne, who  agreed with Johnson that landlords are adjusting rates to keep tenants.

Thyne also agreed with Johnson that although times have been challenging for commercial real estate,  things may be opening up in the coming year.

“We’ve got to do what we can to  fill those empty store fronts on State Street,” Thyne said. He noted that one client is looking for 5,500 square feet of restaurant space on State Street.

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Cheerleading and whistling though the woods : 11/30/2009

It sounds like these guys have been spending too much time at the watering hole. Commercial real estate is just now starting to feel the effects of the deflating bubble that has been crushing the residential real estate market for two years. The storefronts are empty because the rents are too high. The basic business conditions of retail have changed dramatically due to on line competition. This isn't going to go away. Meanwhile few corporations can afford the huge rents associated with high building prices. This is dramatically demonstrated by the sale of the Detroit Silverdome stadium for less than the price of a started house in SB.

SB Citizen

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Walmart : 11/30/2009

We need a freaken Walmart in this area... screw the rich snobs of SB

We wnat a walmart

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