Oahu’s retail marketplace received a 502,178 square foot boost in net absorption in 2016 as Ala Moana Center, International Market Place and Ka Makana Alii developments added nearly 1.4 million square feet of additional inventory.
A few days ago, American Savings Bank released renderings of its new Honolulu campus, which will bring its employees and offices together under one roof.
Our team is very interested in the co-working space trend that is popping up all over the islands. MyGoCenter has just opened a space in Kapolei and they are looking forward to many more locations on Oahu. Their second location is supposed to open before the end of the year.
Vacancy rates rose to 12.66% from 12.38% over the past quarter, as 61,190 square feet of lost occupancy was generated in the fourth quarter, bringing the total year net absorption to 42,103 square feet.
After posting more than 170,000 square feet of positive absorption over the past two quarters, the Oahu office market changed direction and recorded 63,698 square feet of lost occupancy for the second quarter of 2016.
Several “X” factors are changing the game in the office market. Variables such as the low cost of capital, movement to open floor plans, implementation of technology in the workforce, and the desire for businesses to avoid long commutes have shaped the landscape of the office market. Low Interest Rate Environment The cost of capital has been relatively low and as a result a number of large office tenants have purchased, or are considering the option to purchase their own office facilities rather than continuing to pay rent to a third party landlord. For companies that have the access to financing or capital, the strategy of purchasing allows them to fix their occupancy costs and allow firms to build equity in real estate. Desire for Efficient Office Space “Collaborative” office space is becoming popular among designers and technology firms. The modern space plan of an office space allows for the reduction of cubicles and private offices. The increase in space efficiency decreases the demand in the marketplace for larger office footprints. Adoption of Mobile Technology …