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Tuesday, January 16, 2007

State Street Update

A citizen stringer passed along a story from The Pacific Coast Business Times which is saying that the owners of 636 State Street (Italian/Greek Deli et al.) are now asking $25,000/month triple net to lease out to a single tenant. Who knows if the deli will remain?

They are also reporting that Cost Plus will be leaving it's location in June (although signs in the store say otherwise). The building was listed for lease on Dec. 20, 2006 and offered at a monthly lease rate of close to $100,000/month.

At these prices, who can afford to do business in the downtown area?

18 Comments:

Anonymous Worker Bee said...

To answer your questions, SDL, Starbuck's can apparently afford to open a location every 14 feet on State Street.

Screw it - I look forward to the day when every single store on State Street is a freakin' Starbucks.

Yikes! I turn around for two minutes to post a blog and Starbucks opened a location in my living room!

1/16/2007 11:38 AM  
Anonymous Why not just be like Newport Beach? said...

The property owner where Cost Plus World Market is located wants to break the lease so he can triple the rent. Cost Plus legally took over the 15-year lease from the defunct Strouds almost five years ago, at the Strouds rental price.

This has infuriated the owner, who now is revisiting history and pretending the lease expires, as reported in the Pacific Coast Business Times article with no comment or citation from any representative from Cost Plus.

To break the lease, the owner made up a claim that Cost Plus was allegedly negligent by allowing a tree on the property to grow too big and slighly damage a tree planter box in the back of the store along Cota Street. The store (the tenant) paid dearly to remove the tree and repair the planting box. Thus, the alleged lease infraction cost the property owner nothing and hardly anyone even noticed the tree box had a problem.

This has not even gone to arbitration, as required under the current lease. The greedy property owner thus is spinning it that the lease already is up and it all is a done deal.
Wishful thinking.

1/16/2007 12:38 PM  
Blogger cookie jill said...

citizen stringer....Love it! ;-)

1/16/2007 4:25 PM  
Anonymous Anonymous said...

Has anyone seen Idiocracy? It is Santa Barbara 25 years from now...

1/16/2007 6:01 PM  
Anonymous dd said...

Downtown will be a ghost town if the prices keep going up. There is no incentive for me to shop there.....dd

1/17/2007 7:38 AM  
Anonymous Anonymous said...

Good to see these businesses go! I'd like to see some sustainable dense housing on State Street. Not all these tourist shops.

1/17/2007 8:19 AM  
Anonymous Brian Olson said...

I feel bad for the people getting pushed out who otherwise had stable, successful businesses (not an easy thing). If State Street doesn't in fact become the next Rodeo Drive and get Beverly Hills customers who can pay Beverly Hills prices to Beverly Hills stores, well, I won't feel bad for the landlords whose greed drove up the rent and drove away workable tennant businesses.

There are already increasingly few retail shops on State Street I have any reason to go to. I'd be sad if it entirely changes to serve luxuries and frivolities I have no interest in.

1/17/2007 9:34 AM  
Anonymous Anonymous said...

Who cares what happens on State Street - not the locals.

1/17/2007 10:58 AM  
Anonymous Anonymous said...

Idiocracy? Is that a rap group?

1/17/2007 12:07 PM  
Anonymous wineguy said...

I certainly care about the Greek-Italian deli. It is one of the finest shops of its kind I have ever seen! I do hope if they get pushed off State that they will be able to find another downtown location.

1/17/2007 2:55 PM  
Anonymous Critical Workforce said...

Regarding "sustainable dense housing on State Street"

The new alleged market rate for commercial space downtown State Street is $4 per square foot per month. That would make the World Market store rent out for about $100K per month.

How would any sustainable, dense housing work at those prices?

Even if the World Market building space were converted into 25 very creative loft condos or apartments, that would be $4000 each per month, about 3x the market rate for rent or mortgages for a dwelling that size.

Indeed, except for the old restaurants like Joe's (across from World Market) and only a handful of stores (including the often good deals on furniture at World Market), downtown State Street keeps replacing the commercial spaces with ventures that fewer and fewer local people need and have any interest in?

1/17/2007 3:18 PM  
Anonymous Anonymous said...

I bet loft condos on State could get over $2 Million each. Or they could be time shares, which could probably get $60K per month per unit. Better than tourist shops.

1/17/2007 6:17 PM  
Anonymous Anonymous said...

Even though I'm personally sad that the Greek Italian Deli might close down, there is probably a good reason Johnny Morosin is not commenting. If you research who belongs to the Gallina Family Trust you will see that not every business owner mentioned in the Pac Coast Biz Times article is necessarily being victimized by this decision. Note the last names of the family that owns and has run the Greek Italian Deli for decades in the following edhat article from April 15, 2004: http://edhat.com/site/tidbit.cfm?id=110

1/17/2007 7:55 PM  
Anonymous Anonymous said...

State Street isn't for the locals, so what does it matter?

1/18/2007 5:25 AM  
Anonymous David Pritchett said...

Video of KEYT news story that showed on 27Dec.2006. The Palm there did not have much time that day for a longer story.

copy and paste into your browser the full URL here: http://video.google.com/videoplay?docid=-3239326488552663727

1/19/2007 9:07 AM  
Anonymous Anonymous said...

KEYT is hardly a credible news source. Mostly fluff and weather.

1/19/2007 9:43 AM  
Anonymous Big Fat Fan of KEYT said...

So if KEYT supposedly is not credible, does that mean the basic facts in the news story are incorrect?

Or, is a complaint about this news story just more spin and distraction from how the property owner and broker there wants everyone to believe the lease for the World Market building really is ending when it actually has about 10 more years?

1/19/2007 1:18 PM  
Anonymous Anonymous said...

What wrong with kicking out World Market and building housing? We need it! And KEYT isn't much of a news station either.

1/24/2007 1:01 PM  

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