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Oahu Industrial Market Report Q3 2022

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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.


Key Takeaways

  • 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

All Indsutrial Stats

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Oahu Industrial Market Report Q3 2022

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Related Experts

Mike Hamasu

Research & Consulting Director

Hawaii - Honolulu

Michael brings to Colliers 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 Market Pricing
• Highest and Best Use Studies
• Real Estate Portfolio Analysis
• Strategic Positioning Study
• Market Rent and Vacancy Forecasts

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