Optimism Emerges for Oahu’s Office Market
For more than a year, COVID-19’s impact on the state’s economy created uncertainty for Oahu’s office sector. Fortunately, successful progress has been made in reducing hospitalization and death rates and on June 11, 2021, Honolulu Mayor Blangiardi announced that the City would enter Tier 4. This announcement coincided with the news that vaccination efforts are on track and that a purported 61% of the population had received at least one dose.
Under Tier 4 of the City’s Reopening Strategy, business offices are encouraged to continue to work remotely and adhere to social distancing requirements until the State achieves the CDC-recommended 70% vaccination rate. At that level, the State of Hawaii is projected to reopen its economy with no COVID-19 restrictions. There is a strong belief that Honolulu will be able to reach that goal and fully reopen by Labor Day 2021. This is welcomed news for many business offices that have been working remotely and can now begin to formulate plans for a full return.
With the growing belief that a semblance of normalcy will soon return, Oahu’s office market began to show initial signs of life with 25,971 square feet of net absorption recorded for 2Q2021. Vacancy rates, which rose to 12.69% during 1Q2021 declined to 12.39% at the end of 2Q2021.
- Market posts positive 25,971 square feet of absorption for 2Q2021
- Vacancy rates decline from 12.69% to 12.39% during the quarter
- Across all sectors, 29,800 jobs gained from April 2020 to April 2021
- Class A CBD generates majority of 2Q2021 gains