State Street Santa Barbara: New Openings and Fall 2026 Plans

State Street's big storefronts were built for a single tenant, like a department store, an office supply chain or a fast-fashion brand. This fall the largest of them are coming back with something else in them. One holds dozens of small sellers under one lease. Another is becoming a music school with a performance hall. A third belongs to a university that hasn't yet decided what goes inside. Meanwhile the independent shops opening downtown are picking smaller spaces, older courtyards and shared studios.

None of these projects holds the answer for downtown on its own. Taken together, they show how State Street is getting filled again. Shoppers no longer support one retailer per big box, so the buildings are being divided up or handed to institutions.

1105 State: one building, dozens of shops

The clearest example opened on Thursday, October 1. State Street Trading Post fills 10,000 square feet at 1105 State Street in the Arts District with what Edhat calls "a shop within shops." Dozens of independent vintage sellers, makers and select retailers each get their own space under one roof. Noozhawk confirmed the opening and noted that opening and hiring signs had been in the windows since 2024.

The building is older than almost anything else on that stretch. It went up in 1920 as Andrea's Department Store, later housed Tienda Ho, and according to Edhat has had only three owners in more than a century. "It's not lost on us what a privilege it is to hold a piece of Santa Barbara history in our hands, and we've approached every step of this renovation with the care and respect that legacy deserves," store manager Nicole Roehrig told Edhat.

The business model is the important part. The company describes the store as "a launch pad for dozens of micro-businesses, giving them a physical storefront on State Street without the crushing overhead of commercial rent." A space that once needed one retailer to cover the rent now spreads that cost across many sellers. The shelves carry vintage and contemporary clothing, sustainably made goods, vintage furniture and one-of-a-kind housewares.

The soft opening runs through October. The official Launch Celebration is Saturday, November 7.

901 State: a music hall where a fast-fashion store stood

Four blocks closer to the water, the corner at 901 State Street has a different kind of tenant lined up. The former Forever 21 building is becoming The Muse, a music education center run by the Music Academy of the West. The Downtown Santa Barbara Improvement Association announced a ceremonial groundbreaking for this Thursday, October 15, at 5 p.m. on site, and the Santa Barbara Independent published the event details.

The Academy expects The Muse to open in 2028. The release describes it as extending the Academy's presence from its Miraflores campus in Montecito into downtown Santa Barbara. The plans include a performance and rehearsal hall with retractable seating for up to 200 people, along with teaching studios, practice spaces, backstage facilities and a lounge. On top sits a rooftop terrace built around an Oculus skylight that opens into the hall below. In June the Planning Commission approved a height exception for the building, including the rooftop event area. Noozhawk reported at the time that the project would still return for final Historic Landmarks Commission review.

Academy President and CEO Shauna Quill described the goal in the release: "a vibrant year-round gathering place for artists, audiences, families, and community partners." A music school brings people downtown on weekday afternoons and evenings for lessons, rehearsals and concerts. That kind of traffic doesn't depend on whether anyone buys something.

Until construction fences go up, the 900 block has a seasonal tenant. Noozhawk reported that World of Magic Halloween has opened at 913 State Street.

The big buildings, block by block

410 State is still waiting on a decision

The 400 block has the largest building with no plan yet. UC Santa Barbara owns 410 State Street, the roughly 18,000-square-foot former Staples. It is part of a cluster of university holdings near State and Gutierrez that also includes the Soltara Apartments and the Reid's Appliances building, which is still leased. When UCSB announced the purchase in January 2025, it floated an innovation or maker hub, an event venue and lecture space as possible uses. None of those has been confirmed. The Downtown Santa Barbara development listing still shows the commercial space's completion as "TBD."

So at both ends of the commercial core, institutions now own big footprints that a single retailer used to fill. One has a groundbreaking date and the other doesn't.

The independents are going smaller

The small shops opening downtown are making the opposite choice. Instead of big boxes, they're taking compact, older or shared spaces.

• Jess Conti Leather Goods left the Funk Zone after five years for 29 El Paseo, the Presidio-area courtyard, and announced an October 1 ribbon-cutting. Conti called the Presidio a fitting new home, Edhat reported.
• Prep House opened at 111 Santa Barbara Street in the Funk Zone. Like the Trading Post, it's a collective: four beauty and wellness operators sharing one space. Co-owner Megan Brand told Noozhawk the operators are "really proud of the concept."
• The Men's Den opened at 137 Anacapa Street on August 29. The concept started inside Kariella, a women's boutique with stores in Ojai and Santa Barbara, after staff saw how many men waited while their partners shopped.
• Wear & Roam, a travel clothing brand founded by Haley Byfield, has a storefront at 537 State Street in the historic property that includes Hotel Santa Barbara. It's the brand's second store, after its flagship in Scottsdale, Arizona.

Some long-running places have closed. According to Noozhawk, Pascucci served its last meal on September 19 after more than 30 years at 1230 State Street, and Evangelina Boutique has closed at 805 State Street. In May, Pascucci owner Laura Knight told SantaBarbara.com that a new concept would replace it. She described lighter fare, rotating specials, homemade soups and more flexible menus aimed at the Theater Arts District, with several long-serving employees staying on. Liquor-license transfer issues and construction and ADA requirements in the bar area were slowing the switch. That report did not name the concept or give an opening date.

The rooftops are coming with institutions

The new rooftop plans downtown are tied to arts institutions, not new retail. The Muse's terrace is planned as an event space. Behind the Lobero Theatre, a proposed addition in the rear courtyard includes a bar and lounge, a roof deck and a 130-seat banquet hall. In February the Independent reported that it still needed Planning Commission review. No opening date has been published.

Where the State Street Master Plan stands

All of this is happening while the street plan itself is still unsettled. At its September 1 meeting, the City Council introduced the State Street Master Plan ordinance and authorized staff to pursue grant funding and begin pre-construction and engineering work. A General Plan circulation amendment is targeted for early 2027. The city's State Street page says the plan was adopted by September 21 and that the city is now looking for implementation funding. The staff report projects six years of implementation, with construction starting within 18 months of adoption. Operating hours for each mode of travel will be decided in Phase 1, not set by the plan itself.

The Independent has also reported on a signature drive to put a referendum on the plan before city voters. Whether it will qualify hasn't been decided. In the meantime, the promenade rules the city has posted require cyclists to yield to pedestrians.

The Trading Post opened October 1, and The Muse breaks ground this week.

Downtown dates through December

• Tuesdays, 3 to 6:30 p.m.: Santa Barbara Certified Farmers Market on the 600 to 800 blocks of State Street.
• Thursday, October 15, 5 p.m.: Groundbreaking for The Muse at 901 State Street.
• Saturdays, 8 a.m. to 1 p.m.: Farmers market at Carrillo Street and the 900 to 1000 blocks of State Street. That puts the Muse site and the Trading Post a short walk apart on market mornings.
• Through October: Soft opening at State Street Trading Post, 1105 State Street.
• Thursday, November 5, and Thursday, December 3, 5 to 8 p.m.: 1st Thursday, Downtown Santa Barbara's free monthly arts night with gallery openings, performances and wine tastings.
• Saturday, November 7: State Street Trading Post Launch Celebration.

Older downtown buildings get adapted to new uses one renovation and one review hearing at a time, and that process also affects the homes and small buildings near State Street. If you own property close to these blocks and want a clear read on what it's worth as downtown changes, Caleb Overton can walk through it with you. Request a Complimentary Home Valuation.