This week in Santa Cruz County business: Filling the old Logos building, hotel rates and a Westside rebrand

Each week, we’re taking a closer look at the movers and shakers, the growth of industries, and what’s really driving the Santa Cruz County economy. I’ll be spotlighting some of the biggest areas for opportunity, updates on local development and all things underpinning the regional business scene, each Wednesday.

Got ideas? Send them my way to news@lookoutlocal.com with “Business News” in the subject line.

7 years since Logos closed, search for new tenant continues

What’s going on with the former Logos Books & Records in downtown Santa Cruz? The answer, it turns out, is nothing yet, but it’s not for lack of trying. 

When the beloved Pacific Avenue bookstore shut down in 2017, it left empty one of downtown’s largest retail spaces. It’s also arguably one of the weirdest, in terms of floor plans. As past patrons of Logos might recall, there’s a ground-floor level of about 7,000 to 8,000 square feet, with stairs that go down to a lower level of about 3,500 square feet, and that lower level can’t be leased separately. It’s an unusual setup, but one that could be a great fit for the right tenant, said Nicholas Greenup, a senior associate with Cushman & Wakefield. But so far, finding that right tenant has proved challenging.  

“With Logos, we really want to hold out for someone who really wants to be there,” said Greenup, adding that the building’s owner is willing to be flexible in terms of lease length, build-out, etc. “The building kind of breathes a unique use.”

Logos’ owner, John Livingston, also owns the building at 1117-1119 Pacific Ave., which includes office spaces on the upper floors. 

Efforts to fill the space have been a bit of a Goldilocks tale. Talks with a bicycle retailer to take over the space fell through, as did plans for a brewery. In 2018, the Greater Purpose Community Church sought to open a brewery in the space, but that eventually fell through due to issues with plumbing discovered during early demolition for the remodel. For a restaurant and brewery, it would have required replacing the discharge line, a costly procedure, the church’s then-pastor, Christopher VanHall, told Edible Monterey Bay. Instead, Greater Purpose took over the former East Cliff Brewing Co. in Live Oak at the end of 2020, which then closed in 2023. (Balefire Brewing Co. now occupies that location.) 

The unusual space offers room for growth, something Greenup said could be a selling point for a smaller business with plans for future expansion. Finding a larger business has been tricky, in part, because that stretch of Pacific Avenue has historically been a harder sell with national retailers who tend to view the section between Locust and Lincoln avenues as their sweet spot, according to Greenup. 

“We’re trying to change that,” said Greenup, who’s been working on the listing for a year and a half. “I need to find people willing to take a gamble.”

That work has included meeting with city officials, cold-calling prospects and other efforts. One thing it likely won’t be is a grocery store, as Greenup and his colleague, Reuben Helick, are also seeking a tenant for the 14,000-plus-square-foot space on Pacific Avenue vacated last month by New Leaf Community Markets. 

“It’s been kind of nice having the New Leaf listing; if people don’t make the cut for that space, we can tell them about the Logos space,” he said.

Hotel numbers dip in September, down from summer’s highs

As summer came to a close, hotel occupancy rates in September dropped to 70% from 75% the month prior, according to the latest numbers from Visit Santa Cruz County, the county’s nonprofit tourism marketing organization. That was about even with September 2023. 

Room rates also dipped from summer’s high of $227 in July, with the average daily room rate for September reported as $200. Also declining were occupancy rates for short-term vacation rentals, which were down about 12% from September 2023. Average daily rates for short-term rentals, however, were up nearly 12% from the year prior. 

Among the organization’s other findings for September:

Repeat visitors common: For two out of every three visitors on average, it was at least their second trip to Santa Cruz County in the previous 12 months.

The average length of stay was 2.3 days. 

September saw a higher percentage of in-state visitors, accounting for 70.4% of tourists in that month compared to 65.7% and 66.8% in August and July, respectively.

While summer remains the biggest time for tourism locally, hospitality and tourism leaders have said they’re working hard to increase visitors to the area during what are called the “shoulder seasons,” fall and spring. Those efforts include working to promote more business and corporate travel, offering special rates and introducing new events.

ICYMI: Businesses eye ‘Westside Marketplace’ rebranding

A group of business owners in the Westside neighborhood of Santa Cruz are seeking to rebrand the area under the name Westside Marketplace. The goal is to transform the neighborhood, which occupies an area formerly home to produce packing facilities, into more of a destination. As Lily Belli reports, the endeavor officially launches on Saturday, Nov. 16, with an event called “Welcome to the Westside Marketplace.”

Ch-ch-changes: Openings, closings and other developmentsUC Santa Cruz selected as a national innovation hub: The U.S. National Science Foundation selected UC Santa Cruz as one of eight partner institutions for its newly established Innovation Corps Hub for the Northwest Region. As part of this work, the institutions will collaborate to bring top research from lab to market more quickly, with an ultimate goal of advancing technologies into societal and economic impact.

Santa Cruz seeking operator for Wharf Wi-Fi project: Santa Cruz city officials are seeking proposals to create a public wireless internet network at the Santa Cruz Municipal Wharf as part of ongoing renovations there. The Wi-Fi network would be used by city staff, event vendors and the public, for emergency communications, events streaming and more. Interested providers can apply – and find out more – here.

CIONIC named finalist in Fierce Innovation awards: CIONIC, a technology company focused on creating devices for people with limited mobility, is among the finalists in the Fierce Healthcare Innovation awards. This program recognizes companies using technology to help patients, save money and transform health care. CIONIC, which operates out of San Francisco and Scotts Valley, is recognized for its neural sleeve, a wearable fabric device that uses sensors and electric signals to help stimulate muscle movement. Winners will be announced Dec. 2.

Got hires, promotions, or departures to report? Send them to news@lookoutlocal.com with the subject line “Career changes.”

Looking at the numbers $5.9 million: That’s how much the owners of the Santa Cruz Beach Boardwalk will pay to settle a class-action lawsuit brought against them. The suit alleged the Santa Cruz Seaside Co. failed to pay employees overtime and failed to allow meal and rest breaks. Check out Hillary Ojeda’s full story here.What’s new on the Lookout Job Board

Want more? Browse all openings on our job board.

Hiring? Post your job today!

Save the date Wednesday, Nov. 6: Santa Cruz Accelerates will host Demo Day, where its sixth cohort of startup teams will pitch their innovations to a panel of judges for a chance to win up to $5,000. Finalists will also be invited to pitch the investors at Santa Cruz Ventures and Hawktower for seed funding. The event starts at 6 p.m. in the Pasatiempo room of the Back Nine Grill & Bar in Santa Cruz. Details and registration are here.

Friday, Nov. 8: The Monterey Bay Economic Partnership will host its 2024 annual State of the Region event from 9 a.m. to 5 p.m. at the CSUMB University Center in Seaside. Representatives from Santa Cruz, Monterey and San Benito counties will speak about the region’s economic progress and other key issues. Speakers include state Sen. John Laird and UC Santa Cruz Chancellor Cynthia Larive. Register here.

Sunday, Nov. 10: The Center for Farmworker Families will hold its final “farmworker reality tour” of 2024 from 2 to 6 p.m. in Watsonville. The immersive tour brings visitors to meet and speak with farmworkers, visit their homes and learn about their lives and the challenges they face. Register here.

Wednesday, Nov. 13: The Santa Cruz County Chamber of Commerce hosts a business “friendsgiving” network event at Cruzio Internet featuring refreshments and holiday crafts. The chamber also will be accepting donations for the Community Foundation’s Equal Access Santa Cruz County fund, which will help support Cruzio’s efforts to make low-cost, high-speed reliable internet available to everyone. The event takes place from 5 to 7 p.m. at 877 Cedar St., Santa Cruz. Register here.

Wednesday, Nov. 20: Santa Cruz city officials will host a public community meeting at 6 p.m to discuss a planned development at 831 Water St. Developers are seeking to reduce the existing commercial space from 2,400 square feet to 800 square feet, with a plan for developing 140 affordable housing units on site. Details here.

Add your business or networking events to Lookout’s free public calendar, BOLO. Click here to add your event.

Business news worth reading

Have something to say? Lookout welcomes letters to the editor, within our policies, from readers. Guidelines here.