In the first quarter of 2018, the industrial market posted 7,143 square feet of negative net absorption as vacancy rates rose from 1.97% to 1.99% at year-end 2017. During the past four quarters, roughly 245,000 square feet of negative net absorption had been recorded. The extra space has allowed vacancy rates to steadily rise and counteract its record low of 1.53% recorded at the end of 1Q2017. In the first quarter of 2018, the industrial market posted 7,143 square feet of negative net absorption as vacancy rates rose from 1.97% to 1.99% at year-end 2017. During the past four quarters, roughly 245,000 square feet of negative net absorption had been recorded. The extra space has allowed vacancy rates to steadily rise and counteract its record low of 1.53% recorded at the end of 1Q2017.

Despite this apparent softening in the market, the underlying industrial market remains constricted by low vacancy and limited speculative development. Colliers believes that the lack of available warehouse space has produced pent-up tenant demand. Yet, despite the existence of this demand, speculative warehouse development has been limited to just a few projects in Kailua, Mililani, and Kapolei. The combined square footage of these developments has done little to alleviate the current severe shortage.