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Downtown Santa Cruz is experiencing a new era of occupancy and vibrancy.

New & Noteworthy

Sentinel Guest Commentary Submission,     Feb 9, 2026

Don’t let misconceptions and social media haters fool you! The fact is, Downtown Santa Cruz is experiencing a new era of occupancy and vibrancy. 

Both commercial and residential occupancy are on the rise in Downtown Santa Cruz, and the district is evolving into a more densely populated center of activity.

Downtown Santa Cruz has seen consistent growth of the most vital metric: people. Foot traffic continues to rise, proving that Downtown Santa Cruz is not only retaining its loyal local customer base but also attracting new visitors and shoppers. Remarkably resilient to ongoing construction in the district, foot traffic grew modestly in 2025, recording 9.3 million visits compared to 9.2 million in 2024 and 8.7 million in 2023. This upward trajectory, in spite of the temporary disruption of building projects, highlights the district’s appeal and our community’s commitment to its downtown. 

The commercial sector’s investment in Downtown Santa Cruz is perhaps the clearest indicator of business and entrepreneur confidence. The collective effort to fill vacant storefronts has yielded strong results, with businesses continuing to open Downtown. In 2025 alone, 14 new businesses opened, successfully driving down the number of empty spaces. Pacific Avenue saw its vacancies drop from 17 in April 2025 to just 10 now. This change reflects a district-wide trend: whereas Pacific Avenue had a 16% vacancy rate in April 2025, groundfloor vacancies in the district are now down to a healthy 9.2% overall, even accounting for newly constructed commercial spaces. The momentum shows no sign of slowing, with two new businesses already open in 2026, Switch Bakery on Cedar Street and Anthropologie on Pacific Avenue, and eight more businesses “coming soon” which are currently in design and permitting. The diverse mix of new ventures continues to solidify Downtown Santa Cruz as a premier destination for retail, dining, and services.

This commercial revitalization is being built on a firm foundation of residential density. The housing market downtown has reached a critical milestone: all new residences built in the last few years are now fully occupied, and more are on the way. This new influx of full-time residents is adding new vibrancy to the district. 

Residential occupancy data reveals a successful mix of affordable and market-rate housing. This includes:

  • 135 low-income families in new subsidized apartments fully occupying Pacific Station South and the residential building on Cedar Street next to Calvary Church;
  • 205 luxury apartments at the Anton Pacific building also now fully leased, at 98% occupancy.

The commitment to affordable housing continues, with 252 more affordable homes underway, approximately half nearing completion at Pacific Station North, and the other half slated to arrive with the new Downtown Library project. New market-rate supply is also actively leasing. RiverRow on Front Street is offering 175 apartments, adding more new housing stock. 

Contrary to rumors about out-of-towners moving in, most residents moving into Downtown are moving from within Santa Cruz. 92% of residents in Downtown’s new affordable housing already lived and worked in Santa Cruz. As did 92% of the residents who responded to a survey at 555 Pacific Avenue. 

These are facts: New businesses are OPENING. Commercial space is LEASING UP. New residences are FULLY OCCUPIED. Foot traffic is UP. 

To our friends who come Downtown all the time, thank you for being part of our success story!

If you haven’t been Downtown in a while, maybe it’s time to come see what’s new.

~Jorian Wilkins, Executive Director,

   Downtown Association of Santa Cruz 

The Downtown Association of Santa Cruz works for 500+ businesses in the Downtown Santa Cruz district, over 90% of which are locally owned. We run clean, safe and welcoming Ambassador services, district marketing and events, and provide business support and advocacy. 

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New Businesses Opened in Downtown Santa Cruz in 2025:

New Businesses Opened in Downtown Santa Cruz in 2026 so far:

Coming Soon to Downtown Santa Cruz:

  • Gran Gelato Cafe, 525 Cedar
  • Ashby Confections, 1207 Pacific Avenue
  • The Alley Oop, 320 Cedar Street
  • Soif Wine Bar, 418 Cedar Street
  • The Breakfast Club at Midtown, 1108 Pacific Avenue