Honolulu’s retail market posted 74,282 square feet of lost occupancy over the past six months as vacancy rates rose to 3.98%. This is a 75 basis point increase over the year-end 2008 island-wide vacancy rate of 3.23% and is a five year high. Click here to read the full briefing.

After five years of single-digit figures, the second quarter of 2009 saw the return of office vacancy rates above 10% for the island of Oahu. The recessionary environment has taken a toll on many businesses resulting in office downsizing, consolidation, closure and the postponement of expansion plans. Click here to read the full briefing.

At mid-year 2009, the industrial market posted six months of accumulated negative net absorption of 314,091 square feet. Vacancy rates rose to 5.13% from 4.36% at year-end 2008. After a dramatic loss of occupancy totalling 293,572 square feet during the first quarter of 2009, the second quarter posted a only an additional 20,519 square feet of increased vacancy. Click here to read the full briefing.

Contrary to the barrage of poor economic news, Honolulu’s retail market appeared relatively unscathed through year-end. In fact, most markets would envy the perofrmance that we’ve had with solid positive absorption, low vacancy rates and rising rents.

The Honolulu retail market posted more than 500,000 square feet of positive absorption in 2008. This figure was driven primarily by new developments delivered over the course of the past year. The new Nordstrom wing at Ala Moana, Pearlridge Uptown II and the Avenue Shops at Safeway added more than 450,000 square feet of new inventory. Click here to read the full briefing.

The Honolulu office market posted its sixth consecutive quarter of negative net absorption resulting in a steady increase to the island’s vacancy rate that has risen from a decade low of 6.5% in mid-2007 to 8.6% currently. Closely corresponding to this 18-month time period, Honolulu’s unemployment rate rose from 1.8% for December 2006 to 3.8% for November 2008. More than 150,000 square feet of office space was vacated during the past two years as firms related to real estate, construction, tourism and retailing downsized or closed their offices. Click here to read the full briefing.

Since mid-year 2007, the Honolulu industrial marketplace consistently posted negative net absorption. More than 550,000 square feet of negative absorption was recorded for 2008. This jump in vacant space was the direct result of the delivery of three industrial condominium projects; Kapolei Spectrum, Waipio Business Center and Kapolei Kai. Click here to read the full briefing.

For the fourth consecutive quarter, the U.S. office market gave back space during the fourth quarter, helping to push the national vacancy rate up for the fifth consecutive three-month period. A modest supply of office development also ocurred during the fourth quarter, putting upward pressure on the national vacancy rate. Rents accelerated downward as weakness in the general economy became more apparent with downtown lease rates (in particular) falling sharply. Looking forward, office space fundamentals are sure to weaken substantially as tenants pull back and construction continues, at least through the end of 2009. Click here to read the full article.