Isle office vacancies 14th lowest in US
Honolulu's central business district posted the 14th-lowest office vacancy rate among major metropolitan cities nationwide.
The city's vacancy rose to 9.7 percent in the second quarter, up from 8.6 percent in the first quarter, according to the latest report by Colliers International.
In addition, Honolulu recorded the second-lowest suburban vacancy at 6.4 percent last month, down from 6.8 percent at the end of the first quarter.
The market has lost nearly 190,000 square feet of occupancy over the past year. Lost occupancy has declined for the fourth consecutive quarter -- resulting in a 64,000-square-foot year-to-date loss in tenants, according to a separate report scheduled for release today by Colliers Monroe Friedlander Inc.
Islandwide office vacancy jumped to 8.12 percent, its highest level since 2006, the report said.
"Business optimism and consumer confidence has fallen to record lows and there are serious concerns over the vulnerability of Hawaii's hospitality industry," said Mike Hamasu, Colliers consulting and research director, in the report. "Current business sentiment has changed considerably from the positive viewpoint that was expressed only a year ago."
The highest-class office buildings recorded the largest decline with a more than 41,000-square-foot loss in occupancy due to the relocation of the state Department of Hawaiian Home Lands from downtown to Kapolei and the closure of Aloha Airlines, the report said.
Nationally, central business district vacancy was the lowest in Charlotte, N.C., at 1.9 percent last month, down from 2 percent in the preceding quarter. It was the highest in Pleasanton/Walnut Creek, Calif. at 24.7 percent and 23.4 percent, respectively.
Charleston, S.C. posted the lowest suburban vacancy at 2.4 percent in the second quarter, compared to 2.9 percent in the preceding quarter, while Pleasanton/Walnut Creek, Calif. again had the highest vacancy at 26.5 percent and 31.1 percent, respectively, in the first half of the year.