Honolulu, Hawaii/USA

Vacancy rates for office and retail space on Maui hit their highest levels in at least six years, as unemployment spurred by the weak economy caused businesses to vacate offices and stores, according to a new report.

The vacancy rate for office space on the Valley Isle at the mid point of 2009 was 12.18 percent, according to a report released today by Colliers Monroe Friedlander.

The market experienced 22,350 square feet of negative absorption since the middle of 2008, the report said.

Kahului alone lost 29,200 square feet of occupancy since 2007, which pushed the vacancy rate to 18.47 percent, up from 1.95 percent in 2007 and 2.48 percent in 2008.

The Kihei office market lost almost 2,100 square feet of space, which pushed the vacancy rate there up to 11.5 percent. Only Wailuku, where the vacancy rate fell to 8.5 percent this year from 12.7 percent in 2008, posted gains in occupancy.

Maui’s retail market lost 40,399 square feet of occupancy in the past year, which pushed the vacancy rate to 7.7 percent, the highest level since 2001, according to Colliers Monroe Friedlander’s retail market report.

West Maui saw the highest vacancy rate at 12.67 percent. Central Maui, which includes Kahului and Wailuku, had the lowest at 4.76 percent.

Both the office and retail markets are likely to see increased vacancies over the next year as businesses seek to reduce costs and marginal retailers close their doors.

Average asking rents for retail, meanwhile, fell by 10.5 percent to $3.90 per square foot per month, down from $4.36 per square foot. Average operating expenses were $1.02 per square foot per month, which means full-service asking rent was $4.92 per square foot.

Office rents, however, rose last year for the ninth consecutive year, the report said.

About Colliers International

Colliers International is a global affiliation of independently owned commercial real estate firms. The organization's 12,700 employees span the world in 294 offices in 61 countries. On a worldwide basis, Colliers manages 1.1 billion square feet, and has revenue of $US 1.6 billion.

Contact Information

For further information please contact Andrew D. Friedlander at 808.523.9797 or via email at andrew@colliershawaii.com or Mike Y. Hamasu at 808.523.9792 or via email at mike@colliershawaii.com.

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