Hawaii's industrial real estate market continued to weaken in the third quarter, according to a report by CB Richard Ellis.

Absorption — the growth of occupancy — is negative at 266,667 square feet statewide. Some 170,649 square feet of that vacancy is on Oahu.

Hawaii has seen “;negative absorption since 2007”; despite some “;good quarters,”; said report author Jeff Hall, Hawaii senior director of research for CB Richard Ellis Inc.

Asking prices for industrial rents have fallen to their lowest levels in three years and are currently averaging $1.11 per square foot per month statewide, with the average Oahu rate at $1.13 per square foot. The previous high was $1.28 per square foot on Oahu in the first quarter of 2008.

Despite the decreases, industrial tenants are still “;sitting on the sidelines”; waiting for signs of a recovery, the report says.

The industrial market is likely to remain soft through 2010, Hall said.

“;It's just going to be real difficult until the economy turns around,”; he said.