Honolulu office vacancy increased from last year as landlords continue to compete for what's described as a “;very limited pool”; of tenants.

During the first quarter, Honolulu office vacancy sat at 10.5 percent, a half-percent higher than the same time last year, according to the Hawaii Commercial Real Estate's quarterly report.

New tenant demand is associated with either federal spending or the city's rail project. Tenant demand associated with tourism, real estate and support services remain weak as the economy staggers out of the recession.

“;With job growth forecast to be negative for 2010, we expect that office demand will remain negative throughout 2010 and pick up in 2011,”; the report states.

Several large spaces will soon be vacant, the report says, and would only worsen the market. The moves include:

» AECOM's ending sublease at the Davies Pacific Center.

» Smith Barney vacating a 20,000 square-foot area to move to Pacific Guardian Center.

» MetLife Home Loans closing its office at Alii Place.

The weak demand has resulted in “;significant”; concessions to entice tenants to move in, including lower base rent, smaller annual rent increases and improvement allowances, the report said.