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Oahu Office Market Report Q2 2021

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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. 

 

Key Takeaways

  • 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 

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Oahu Office Market Report Q2 2021

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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.

PROFESSIONAL EXPERIENCE
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.

CONSULTING ASSIGNMENTS
• 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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