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Oahu Industrial Market Report Q3 2021

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Industrial Market Firing on All Cylinders

Oahu’s industrial market posted its third consecutive quarter of healthy occupancy growth as vacancy fell to 1.73%, its lowest level in over four years. Despite the COVID-19 pandemic and the recent emergence of the Delta variant, year-to-date, nearly 540,000 square feet of new occupancy was recorded.

Of the combined 458,000 square feet of speculative warehouse space added to the market a year ago (when Thomas Sorensen’s 91-150 Hanua Street and Nan Inc’s 91-150 Malakole Street were delivered), roughly 70% has been successfully leased. Tight market conditions will continue as new warehouse construction remains limited for the near term. Vacancy rates will remain below pre-pandemic lows of 2%, hampering industrial tenant expansion plans. 


Key Takeaways

  • Third consecutive quarter of robust leasing activity

  • Year-to-date net absorption jumps to 538,942 square feet

  • Vacancy rates fall below pre-pandemic levels

  • Direct weighted average asking base rents soar to a new record high of $1.33 psf/mo

  • Tight market conditions projected to persist beyond 2022


Industrial Charts

Sitecore Industrial

Oahu Industrial Market Report Q3 2021

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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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