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CBRE
FIGURES
  | 
HAWAII | Q1 2023
Signs of Resilience Overshadowed by Macroeconomic Headwinds
CBRE RESEARCH
 | 
APRIL 21, 2023
10.9%
Office Vacancy Rate
2.9%
Industrial Availability Rate
6.2%
Retail Vacancy Rate
Arrows indicate change from previous quarter.
Office
  • Downtown carries Oahu in Q1 with 13,286 SF of positive net absorption: Downtown experienced 13,286 SF of positive net absorption while suburban markets experienced 12,463 SF of negative net absorption; a reversal of recent trends where Suburban markets typically led the way. 
  • Vacancy Rates & Availability rates decline: The Vacancy rate and Availability rate both decreased slightly in Q1 2023.
  • Asking Rents rise due to increased in Operating Expenses: The average gross asking rent increased from $3.05 in Q4 to $3.10 in Q1 2023 across Oahu. Net asking rents declined quarter to quarter; however, an $0.08 increase in OPEX caused gross asking rents to increase.
Industrial
  • Statewide availability rate at an all-time low: The statewide average availability rate is at 2.9%. Oahu’s availability rate decreased to 3.5%. Maui decreased to 1.0%, Kauai remained at 0.4%, while the Big Island increased from 2.5% to 2.9%.
  • Low availability leads to more negative net absorption in Q1 2023: Q1 2023 had a negative net absorption of 104,204 SF compared to the negative net absorption of 28,741 SF for the prior quarter.
  • Average net asking lease rates increased while operating expenses held steady: Average net asking lease rates increased from $1.31/SF in Q4 2022 to $1.42/SF in Q1 2023. Average operating expenses remain at $0.43/SF.
Retail
  • Vacancy rate drops slightly for the first quarter of the year: Hawaii’s retail vacancy rate drops slightly from 6.3% for Q4 2022 to 6.2% for Q1 2023.
  • Net absorption decreases compared to prior quarter while availability decreases across the board: Statewide net absorption decreased from 40,984 SF in Q4 2022 to 17,354 SF of net absorption in Q1 2023. Year over year comparison by centers indicates drops of availability across the board.
  • Average asking lease rents remain the same while CAM decreases slightly: The weighted average asking lease rents across Hawaii remain the same at $4.71 NNN for Q1 2023 compared to prior quarter. The average CAM also decreased from $1.24 to $1.20/SF. 
For more information, please contact:
Blair Bonuccelli
Managing Director
+1 808 541 5170
blair.bonuccelli@cbre.com
Zach DiSalvo
Field Research Manager
+1 858 646 4780
zach.disalvo@cbre.com
Maggie Lui
Field Research Analyst
+1 808 541 5128
maggie.lui@cbre.com 
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