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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 writer and editor living in Los Angeles whose work has appeared in such publications as Travel + Leisure, Angeleno and Los Angeles Magazine.

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