According to a report released by Hawaii Commercial Real Estate LLC, the vacancy rate in Honolulu’s “Class A” buildings, or premium office buildings, has increased to 15 percent during the first quarter of 2012. This is an increase from the 14.4 percent posted during the fourth quarter of 2011 and the 13.1 percent posted a year ago today. Experts focus their attention on “Class A” buildings as a market indicator due to the fact that they tend to hold larger tenants.
The report stated, “While vacancy continued to increase, anecdotal evidence suggests we are near the bottom. The numbers of showings are up, and we have seen a number of small startups looking for small space. We have also seen tenants more willing to move, which may suggest that tenants want to lock in good deals now before the market turns. It is important to note the cumulative impact of Honolulu’s rail project on downtown office occupancy. If the project is killed or stalled, it could mean some or all of the approximately 100,000 square feet occupied by HART and its contractors would come back on the market. Conversely, if the project does get into full swing, more space will be needed downtown.”
Source: Honolulu Star Advertiser, 6-15-2012, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
