THAT is Happening in Downtown Santa Barbara?!

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The hottest topic by far right now affecting downtown is cannabis. When looking at the commercial cannabis map for applications, a large part of the opportunities were in the downtown core and on State Street; the coastal zone, and hence the Funk Zone, was not allowed. Although a few of the applications are for State Street properties, and would help cure some vacancy, these locations have received a lot of push back from the community.

Downtown lease rate update: Average asking rates for retail space on State Street increased by 3.35% since April, as a handful of storefronts have come available within the past month. While less than 4% of these spaces are vacant, landlords are looking ahead for replacements. Notable new availabilities include the 17,000 sq ft Staples building at 410 State St.; 4,365 sq ft at 601 State St., which is currently Aaron Brothers; and 2,503 sq ft at 1131 State St., where Peet's Coffee has now closed.

While we are seeing an influx of new space hit the market, some absorption is still taking place. Montecito favorite, Trattoria Mollie, will be opening a location at 1218 State St., which was the longtime home of Tupelo Junction. Additionally, 400 State St. has been leased to Habitat Home & Garden to breathe life into the entrance to downtown from the Funk Zone/waterfront area; the company also has a store in San Luis Obispo. Charleston Shoe Company has also opened at 1017-A State St. next to Lilac Patisserie. See my State Street Update for more info.

In sales news, the Unity Shoppe has purchased 1207 State St., between Benchmark Eatery and 1209 State St., which they purchased last August. The non-profit organization now has almost 12,000 sq ft and approx. 55 feet of frontage on State Street. Also, the vacant 1013 State St. building has also come on the market for sale at $1.825 million.