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Oahu Industrial Market Report Q2 2021

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Industrial Market Rebounds to Pre-Pandemic Levels

Oahu’s industrial market proved its resilience as more than 307,000 square feet of occupancy growth during the first half of the year brought vacancy rates down to 2.29% at the end of 2Q2021. Moreover, despite the delivery of over 450,000 square feet of new warehouse product in the third quarter of 2020, pent-up demand fueled healthy leasing activity in 2021. As a result, vacancy rates, which had risen to a nine-year high of 3.05% at year-end 2020, fell back to pre-pandemic levels.


The industrial market’s performance directly corresponds to the ebb and flow of the economy. At the height of the pandemic, industrial tenants and landlords postponed leasing decisions as deal velocity fell and lease term lengths shortened. The recent improvement to Oahu’s economy with its increase in air passenger counts, boost in retail spending, and surge in residential home sales will continue to bolster the performance of the industrial sector for the rest of 2021.


Key Takeaways

  • Malakole Industrial Park and 91-150 Hanua Street developments spur increased year-to-date leasing activity


  • Year-to-date occupancy growth surges above 307,000 SF


  • Tight market conditions to persist as development activity ramps up


  • Pandemic fears begin to subside as business optimism returns


2Q2021 Industrial Market Stats

2Q2021 Industrial Report Thumbnail

Oahu Industrial Market Report Q2 2021

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Mike Hamasu

Research & Consulting Director

Hawaii - Honolulu

Michael brings to Colliers Monroe Friedlander, Inc. over 25 years of marketing and marketing research experience. Michael has directed research efforts at commercial brokerages with a focus on providing information to assist in strategic decision making for real estate investors and brokerage clientele. This effort reported on nearly 600 million square feet of commercial/industrial properties in the San Francisco Bay Area.

Having been quoted in the Wall Street Journal, USA Today, Real Estate Forum and Commercial Property News as well as other regional publications, Michael has been recognized for his detailed analysis of the commercial real estate marketplace and has  become the recognized source for commercial real estate trend analysis and forecasts for Hawaii’s marketplace.

In addition to managing the primary and secondary research efforts in the collection of commercial office, retail and industrial market information and statistics, Michael established the company’s real estate consulting division. Utilizing market factors such as: vacancy rates, absorption, net effective rents, and sales comparables, this consulting unit is able to advise developers, investors, property owners, and tenants on current and projected market trends.

Whitney Cressman Limited — Commercial Real Estate Marketing Research Director
Directed brokerage, internal research efforts, and generated real estate consulting assignments at a busy boutique firm in San Francisco Bay area. Served as the principal liaison to press and media. Analyzed office, retail, and development site criteria for market demand and feasibility.

Cushman & Wakefield — Commercial Real Estate Research Services Manager
Oversaw the compilation of market analytics for 600 million square foot commercial and industrial markets throughout the San Francisco Bay area. Recognized nationally and regionally for innovative data management and analysis. Selected to serve on a national career development board for research services. Directed research staff of 12 in five Bay area markets.
Identified by brokers as a manager achieving service excellence.

• Development Feasibility Analysis
• Market Demand and Absorption Report
• Broker Opinion of Value 
• Highest and Best Use Studies
• Real Estate Portfolio Analysis
• Strategic Positioning Study
• Market Rent and Vacancy Forecasts

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