Overall, Hawaiʻi's economy is weathering the summer season. But when it comes to industrial space on Oʻahu, it's continuing a recent trend — it's tightening.
Oʻahu's industrial vacancy rate hit a record low of 0.76% in the second quarter — the third consecutive quarter vacancy rates dropped below 1%, according to the latest report from Colliers International Hawaiʻi.
Colliers said the shortage of available inventory makes it “challenging for prospective tenants to find suitable relocation or expansion space.”
What industrial space Oʻahu does have has been steadily filling for the past 10 quarters.
Available industrial listings also remained near record low levels with just 21 listings in the 4,000 to 40,000-plus square foot range, a shortage the report calls “severe.”
There’s no relief on the horizon, either. Due to such factors as inflation and rising operating costs, Colliers isn’t expecting to see speculative development in the industrial category until mid-2024.
Meanwhile, the shortage is driving up rental rates for tenants — just not enough to make new warehouses pencil out yet for developers.
