O'ahu's office vacancy rate drops
By Andrew Gomes
Businesses leased an extra 52,573 square feet of O'ahu office space during the first half of this year, dropping the proportion of vacant space to its lowest level since 1993, according to a new report.
O'ahu's office vacancy rate at midyear fell to 9.9 percent from 10.3 percent at the end of last year, according to Honolulu-based commercial real estate firm Colliers Monroe Friedlander.
Colliers said growing office leasing, largely driven by a 3 percent gain in office jobs over the past year, dropped the vacancy rate below 10 percent for the first time since 1993, after which a glut of office developed because of new office tower construction and the state's decade-long economic stagnation.
But don't expect any new office tower construction, Colliers suggested, because of rising construction and office rental rates that are still relatively low.
The average monthly rent asked by landlords over the last six months was $2.29 per square foot, up 7 cents from the end of last year. Colliers said it would take a monthly rent of at least $3.85 per square foot to justify new office high-rise construction.
Colliers projects that O'ahu's office vacancy rate will fall below 9 percent by next year.
Advertiser Staff Writer