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Oahu Industrial Market Report Q2 2022

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Scantly Available Space Inhibits Market Growth

Tight conditions persisted for Oahu’s industrial market as the Q2 2022 vacancy rate fell to 1.38%, the lowest in recorded history. While the quarter recorded 24,075 square feet of occupancy growth, this limited net absorption was primarily a reflection of the lack of available space on the market rather than a reduction in tenant demand.  

A challenge that prospective tenants face is the lack of available listings on the market for lease. At the end of Q2 2022, only 63 industrial spaces existed for lease, a new record low. The “bread and butter” of Oahu’s industrial market are tenants looking for warehouse spaces under 4,000 square feet. However, between Q4 2020 and Q2 2022, listings under 4,000 square feet declined from 137 to 29, a dramatic 78.8% decline. The lack of industrial space options will inhibit growth for many businesses and prevent them from meeting their full potential.


Key Takeaways

  • Oahu’s industrial vacancy rate fell to a historic low of 1.38%

  • Occupancy growth was limited to only 24,075 square feet for Q2 2022

  • Direct weighted average asking base rent hit a record high of $1.37/psf/mo

  • A slowing economy will impact the industrial market


Industrial Stats 2Q 2022

Industrial Image 2Q 2022

Oahu Industrial Market Report Q2 2022

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Related Experts

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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