Office Occupancy Declines for Second Consecutive Quarter
Oahu’s office vacancy rate rose to 14.18%, the highest level ever recorded. A total of 98,471 square feet of second-quarter negative net absorption contributed to an overall loss of more than 145,000 square feet of tenancy during the first half of 2022. As we pass the second anniversary of the start of the COVID-19 pandemic, it is apparent that it will continue to impact the office market’s performance this year. Infection rates for May and June 2022 rose to their highest levels, forcing many businesses to continue their hybrid work arrangements and ultimately push back their “return to office” timelines.
Key Takeaways
- Q2 2022 Oahu office market vacancy rate hits a new record high
- Leasing indicators take a step backward
- Recessionary fears start to mount
- Hybrid work here to stay and popular among all generations
