Local real estate firm Colliers Monroe Friedlander said more than 900,000 square feet of new industrial property is expected over the next year, but demand from expanding construction, retail and other industries should hold down the vacancy rate, which is at 1.8 percent. Monthly rent, at about $1 a square foot, is expected to remain stable.

In 2005, tenants filled 425,344 square feet of industrial space, including 350,000 square feet of new construction. Rising land values and construction costs are likely to constrain development of enough new space to significantly affect the market, Colliers said.

Shidler Group buys First Insurance Building

Hawai'i real estate investment firm The Shidler Group completed its purchase of the First Insurance Building at 1100 Ward Ave. for an undisclosed price.

The 210,000-square-foot building is 98 percent occupied, and anchored by Straub Clinic & Hospital and First Insurance Co. of Hawai'i, which signed a new lease that maintains its name on the building through 2017.

The Shidler Group said it plans to make some cosmetic and physical upgrades to the building.

Alpine Air wins contract for interisland cargo service

Alpine Air has been awarded contracts to continue air cargo service between Honolulu and three Neighbor Island destinations.

Alpine Air, a subsidiary of Alpine Air Express Inc., was awarded contracts through 2008 to provide service between Honolulu and Kamuela on the Big Island, and between Honolulu and Lanai. and Kalapapa on Molokai.

The airline said it also plans to participate in bidding for four additional interisland routes.

Island Air to offer Hawaii-made beer on interisland flights

Island Air said it has has switched from serving domestic beer to only Hawai'i-made beer on all flights.

Island Air now offers Mehana Mauna Kea Pale Ale and Keoki Gold beer. Mehana Mauna Pale Ale is brewed at Mehana Brewing Co., Hilo's only craft brewery. Keoki Gold beer is brewed on Kauai by Keoki Brewing Co. Both beers are available on all Island Air flights for $3 a bottle.