Despite COVID-19, Industrial Market Posts Positive Occupancy Gains in 1Q2021
Since March 2020, the impact of the COVID-19 pandemic forced Oahu’s economy into a steep recession. Much of Oahu’s industrial sectors were required to adopt conservative business strategies that included trimming payroll, reducing inventory and cutting overhead costs in order to survive. At year-end 2020, industrial vacancy rates rose to 3.05%, its highest level in nine years.
However, the industrial market is beginning to show initial signs of improvement. In 1Q2021, Oahu’s industrial market recorded an increase of 110,765 square feet of occupancy as the island-wide vacancy rate declined to 2.78%. While it is still premature to forecast an economic recovery, Oahu’s industrial market performance has served as a good coincident indicator of the economy. Typically, as businesses regain confidence in their future, job counts increase and business expansion plans re-emerge fueling demand for warehouse space.
- Industrial market proves to be resilient
- More than 110,000 square feet of occupancy growth for 1Q2021
- New developments push rents higher
- Land sales projected to pick up steam
- Industrial forecast turns optimistic