Hawaii commercial real estate investment sales volume declined by nearly 25% over the past year, falling from $4.1 billion recorded in 2016 to $3.08 billion for 2017. This is the third consecutive year of decreased sales since the record high volume of $4.57 billion posted in 2014. This decline corresponded to the slowdown in sales volume experienced across the country. Real Capital Analytics determined that total US commercial real estate sales volume fell by 7% over the past year, totaling $463.9 billion in sales for 2017.
The nationwide decline in investment sales is being attributed to the length of the current economic upcycle which is in its ninth year. Buyers are hesitant about making acquisitions because upcycles are typically five years, far shorter than we are now experiencing. Investors are concerned about current pricing levels and potentially buying at the market peak.