The Oahu office market posted a positive gain of 38,268 square feet of net absorption for the second quarter of 2017. This marks the second consecutive quarter of occupancy gains for the year, boosting year-to-date net absorption to 71,785 square feet. As a result, the island’s office vacancy rate fell from 12.43% to 12.23% over the past quarter, its lowest level in more than six years.
Class C offi ce properties generated the majority of the occupancy gains with 89,461 square feet of net absorption for the f rst half of 2017. The largest Class C office transactions included Impact HUB’s lease of 15,096 square feet at Kamakee Vista and Planned Parenthood’s acquisition of the 29,527 square foot property at 839 South Beretania Street. These transactions helped boost the year-to-date net absorption for the Kakaako/Kapiolani/King submarket to 67,718 square feet, the largest occupancy gain among the eight office submarkets.