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Oahu Industrial Market Report Q3 2019

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Colliers Hawaii Industrial Market Report

Industrial Market Reflects Slowing Economic Growth

Key Takeaways

  • A total of 42,319 square feet of negative net absorption was recorded for the first nine months of 2019 as the Oahu industrial vacancy rate rose from 2.03% at year-end 2018 to 2.13%.
  • Recently, the Oahu direct weighted average asking base rent started its upward trek again. Rents jumped form a 2018 average rental rate of $1.21 per square foot per month to $1.27 PSF/Mo at the end of this quarter.
  • The broadcast measure of the current status of the industrial market can be found in job counts. Inn the past year, Wholesale Trade lost 600 jobs, Manufacturing dropped 300 jobs and warehousing cut 100 positions. The Construction sector offset these job losses by adding 200 positions, resulting in a loss of 800 industrial jobs or a 1.1% drop in positions.
  • Uncertainty about the ongoing U.S.-China trade negotiations, combined with a forecasted slowdown to state and national economic growth, will likely have a negative impact on local industrial businesses expansion plans. Prospective warehouse tenants could become skittish over long-term lease commitments, as challenges to business growth increase.
  • Colliers forecasts the Oahu's economy will encounter a gradual softening and vacancy rates will rise above 2.3% by year-end 2019 as negative net absorption rises above 75,000 square feet for the year.

Summary Statistics

3Q2019 Industrial Market

 YTD Net Absorption:  (42,319) SF
 Vacancy Rate:  2.13%
 Direct Wtd. Avg. Asking Rent:  $1.24 PSF/Mo.
 Avg. Operating Exp.:  $0.41 PSF/Mo.

Oahu Industrial Market Report Q3 2019

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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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