Commercial real estate in Hawaiʻi has had some mixed news in recent years — but activity is now picking up in a number of areas.
Local experts say there are some bright spots for the future of the state’s commercial real estate sectors.
Jamie Brown, president and co-owner of Hawaii Commercial Real Estate, says that nearly five years after restrictions from the pandemic sent workers home, there is a lot more leasing activity today in Downtown Honolulu.
It helps that existing office tenants are also committing to long-term leases.
Brown said office-to-residential conversions continue to “soak up” excess space coming back on the market because of less tenant demand. In recent years, conversions have also kept vacancies down.
Leaders at CBRE say demand is generally strong for retail real estate in Hawaiʻi, particularly in Central and West Oʻahu.
“Largely it’s the growth there — the planned growth, the housing growth — that is occurring today that lends itself to more retail development," said “Kimo” Greenwell, CBRE senior vice president.
CBRE’s Jo McGarry Curran said local restaurant owners face a number of business challenges. Those include labor shortages and higher costs for employee wages and food.
Despite these ongoing issues, she said there are a lot of new concepts coming in.
Hotel real estate broker Kevin Aucello, with Aucello & Powell, said while his firm is seeing fewer transactions, economic shifts are working in favor of Hawaiʻi tourism.
With new developments also underway, this makes for what he calls “an interesting time.”
