Oʻahu’s warehouse crunch continues, setting records in terms of low vacancies and high rents.
The vacancy rate for warehouses on Oʻahu hit a low of 1.6% in the final quarter of 2021, according to a report from Colliers International Hawaii.
The amount of warehouse space filled by tenants through 2021 grew by close to 600,000 square feet.
That helped drive base rents to a third straight year of increases in 2021. At the end of the quarter, the average asking base rent per month had climbed to $1.27 per square foot.
In practical terms, what businesses pay varies based on the age, quality, and climate control conditions of a warehouse space.
Current Oʻahu listings at warehousespaces.com are as little as $5,500 a month for 10,000 square feet to $33,000 a month for just over 26,000 square feet.
Colliers Senior Vice President William Froelich attributes these trends to factors that accelerated throughout Covid and still continue.
They include the move by many retailers to e-commerce increased their need for manufacturing, packaging, freight forwarding, shipping, and delivery spaces. The busy construction sector has needed space to store materials for their projects.
Through the year, all lots zoned for new industrial in Kapolei and Hoopili sold out. Additional storage is coming as projects await their permits.
