Perry Lieber sees commercial construction growth, delays in Santa Barbara and Ventura counties

Commercial construction activity is rising across Santa Barbara and Ventura counties, led by healthcare, mixed-use and light industrial projects, while permitting, labor and costs continue to slow delivery. Perry Lieber said the pipeline points to continued demand through 2026 despite the bottlenecks.

Why it matters: - Commercial construction demand in Santa Barbara and Ventura counties is still running above historical averages. - Growth in healthcare, mixed-use and light industrial work signals where regional development dollars are flowing. - Permitting delays, labor shortages and higher costs continue to stretch schedules and pressure project budgets.

What happened: - Perry Lieber, a construction contracting consultant and construction manager based in Santa Barbara, commented on the current commercial construction market across both counties. - Lieber said healthcare, mixed-use retail and residential projects, and light industrial facilities are producing the most commercial construction volume in the region. - Lieber said the market remains active in Ventura and Santa Barbara as of July 29, 2026. - Lieber’s work tracks construction activity in the region through Perry Lieber Santa Barbara and Perry Lieber Ventura.

The details: - Healthcare demand has been steady, with clinic expansions, outpatient facilities and medical office buildings driving work. - Light industrial demand has been supported by more local warehousing and distribution space after earlier supply chain disruptions. - Population retention in both counties is helping sustain commercial demand. - Regional employers expanding their physical footprints are adding to project volume. - Mixed-use projects are drawing interest in walkable corridors in cities including Ventura and Santa Barbara. - Developers are increasingly combining commercial ground floors with residential units above in land-constrained areas. - Permitting timelines are adding months to some project schedules. - Local approval processes remain a major friction point. - Labor availability and subcontractor capacity are slowing the move from planning to construction. - Material costs have stabilized from 2021 and 2022 volatility but remain above pre-pandemic levels. - Higher costs are still affecting project budgets and feasibility, especially for smaller developers. - Lieber said some projects that penciled out two or three years ago no longer do under current cost structures.

Between the lines: - The strongest demand is coming from property types tied to essential services and practical growth, not speculative development. - The shift toward mixed-use projects suggests developers are adapting to limited land and changing tenant demand. - The biggest constraint is not demand but execution, with public approvals and construction capacity slowing the pace of delivery. - Elevated costs may narrow the field of developers able to proceed, which could favor better-capitalized projects.

What's next: - Lieber expects commercial demand to continue through the remainder of 2026. - Pipeline activity suggests the region will keep seeing project interest even if timelines remain extended. - Permitting, labor and cost pressures are likely to remain the main factors shaping which projects move forward and how quickly they do so.

The bottom line: - Santa Barbara and Ventura counties have more construction demand than friction-free capacity, and that gap is shaping the local market.