2021 Industrial Market Booms
Despite the global COVID-19 pandemic, Oahu’s industrial market flourished during 2021. New markers were established as occupancy growth reached a new record high of over 590,000 square feet for the year and the lowest vacancy rate in recorded history was reported at 1.60% for Q4 2021.
The pandemic forced the closure of many brick and mortar stores and disrupted the normal flow of retail goods to the end-consumer. Unable to purchase their necessities by conventional means, many consumers turned to the internet as e-commerce sales surged. For e-commerce companies, logistics plays a primary role in coordinating manufacturing, packaging, freight forwarding, shipping, and delivery to the end-consumer. As these supply chain components prospered, demand for additional industrial space swelled.
As demand surged, the number of available industrial space listings on Oahu dropped to a minuscule 98, setting a record low. For many industrial businesses, the severe shortage of available space inhibited their company’s growth potential as their facilities could no longer accommodate additional business activity.
Fourth consecutive quarter of robust leasing activity
2021 registered a record high 591,855 square feet of net absorption
Vacancy rates drop to 1.60%, establishing a new record low
Available industrial land shrinks as values continue to escalate
Tight market conditions to persist with lack of new industrial development