The Oahu industrial market lost an additional 57,776 square feet of occupancy during the third quarter of 2017, as vacancy rates rose to 1.89%, its highest level in two years. This marks the first time the market generated two consecutive quarters of negative net absorption since 2015. As vacancy rates jumped by 36 basis points in the past six months, more than 118,000 square feet of tenancy was lost.
While this two-quarter reversal may warrant some consternation from landlords accustomed to seeing the Oahu industrial vacancy rate hover near 1.5%, the rise in vacancy is directly related to new warehouses on the market. The addition of six vacant warehouse consisted of two Mapunapuna warehouse listings (39,205 square feet), two Halawa listings (39,539 square feet) and two Campbell listings (53,737 square feet). Together, the additions boosted vacancy by more than 130,000 square feet. Colliers brokers agree that this seems to follow the normal ebb and flow of the market rather than indicating widespread downturn.