Market Achieves Another Historic Low Vacancy Rate
Despite the continued existence of the COVID-19 pandemic, surging inflationary pressures, and rising recessionary concerns, Oahu’s industrial market continued to persevere. For the seventh consecutive quarter, the industrial market posted positive occupancy gains, equating to nearly 750,000 square feet generated, including the 64,570 square feet of Q3 2022 net absorption.
Since the end of 2020, Oahu’s industrial vacancy rates fell from 3.05% to 1.22%, establishing another historic low for Q3 2022. Surprisingly, other U.S. markets have posted even lower vacancy rates. During the past year, the U.S. national industrial vacancy rate fell from 4.9% in Q2 2021 to 3.7% in Q2 2022, establishing a new record low. Nationally, industrial development surged with more than 613 million square feet under construction as investors and developers attempted to capitalize on this growing marketplace.
Oahu’s industrial vacancy rate dipped to a miniscule 1.22% and is expected to drop below 1% by year-end
For seven consecutive quarters, the industrial market posted positive occupancy growth totaling nearly 750,000 square feet
Q3 2022 direct weighted average asking base rents decline to $1.27 per square foot per month
Despite economic uncertainty, Oahu’s industrial market surges forward