For a while there, and for obvious reasons, Santa Barbara’s office-space market was ice cold.
Companies had no idea how or when the pandemic would end, so they deferred on making any major decisions about what to do with their empty properties. They didn’t want to give them up if they didn’t have to, but they didn’t want to make any long-term commitments, either. Few leases were signed, and even fewer sales were made. “It was very stagnant,” said Gene Deering, a principal at Radius Commercial Real Estate.
But with lockdowns lifted, the market is quickly thawing out. Not only are new deals being made, but more and more downtown retail properties are actually switching to office space, said Caitlin McCahill Hensel, an associate broker for Hayes Commercial Group. “Most notably, the upper floors of the former Macy’s are being marketed as office space, and there has been steady interest,” she said. “The upper levels of the old Nordstrom building will also likely be marketed as offices later this year,” a fact that has not been previously reported.