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Commercial real estate transaction volumes have been on a slow decline in Santa Barbara since 2016, when 101 commercial properties traded hands. In 2016, the number fell to 97, and last year, transactions fell to a seven-year low of 81 transactions, according to research from Radius Commercial Real Estate Group. This year, only 15 properties traded hands—on par with quarter 1 2018 and below first quarter activity in both 2016 and 2017.

According to Paul Gamberdella of Radius, there are three main causes behind the trend. “The first is a widening gap between buyer and seller expectations regarding value,” Gamberdella, a principal with the firm, tells GlobeSt.com. “This relates mainly to straight investment sales where sellers are expecting the same lower cap rates that existed a few years ago, whereas buyers seem to be seeking higher returns under current market conditions.”

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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