Falling to its lowest level in recorded history, Oahu’s industrial vacancy rate registered a miniscule 1.53% at the end of the first quarter of 2017. Roughly 36,000 square feet of new occupancy growth was squeezed out of this extremely tight market. Industrial brokers have had to educate their clients about the lack of expansion or relocation options and the need to start their search as early as possible.
The number of available warehouse space listings has shrunk to levels not experienced since the last economic boom which occurred between 2004 and 2007. For the first quarter of 2017, the number of available listings is 47% below the amount recorded for 4Q2007. The majority of Oahu warehouse users typically occupy space less than 7,500 square feet in size. Thus, these size categories have experienced the greatest decline in availability. Between 4Q2010 and 1Q2017, the number of such “small space” listings declined from 401 to 97, a drop of 76%.