You could actually adjust line 1974 for this –
.header-image .site-header .widget-area {
padding: 40px 0;
padding: 2.5rem 0;
}
I would remove the rem line and adjust the top and bottom padding pixels by changing it to look like this –
.header-image .site-header .widget-area {
padding: 20px 0;
}
Then you can adjust the top and bottom padding however you need. Most of that space is coming from the header widget area.