Warehouse Vacancy Dips to 2.7 Percent in 2013
According to a report issued by Colliers International, a commercial real estate firm, the percentage of warehouse vacancies dropped to 2.7 percent in 2013 from 3.8 percent in 2012. One of the biggest reason for this is that the state of Hawaii has begun to reclaim warehouse space at Sand Island and at the Honolulu Airport to expand the Honolulu Harbor and airport facilities. As a result, tenants in these areas are forced to find space in privately owned warehouses and rents have begun rise moderately because of it. The average monthly base rent rose to 99 cents per square foot, an increase of 3 cents per sq foot from the year prior. The report stated, "Tightened market conditions are fueling competition for limited warehouse space. The relocation of tenants to private-sector industrial properties boosted demand throughout the island for warehouse space."
