Honolulu office vacancy rate reaches 11.4%
The vacancy rate for office space in Honolulu rose to 11.4 percent in the first quarter, and tenants are seeing more incentives as landlords negotiate to lease space, according to a new report.
Vacancy rose by 1 percentage point during the quarter, and availability, which includes vacancy plus space offered for sublease, rose to 12.6 percent, according to the first-quarter office market report by CB Richard Ellis.
That pushed occupancy in Class A and B buildings down by 119,605 square feet during the quarter, the report said.
Rents have fallen 2.6 percent in the past year and have leveled off to range between $2.79 and $3.05 per square foot per month, the report said. The average operating expense was $1.32 per square foot per month.
Landlords, meanwhile, are offering more free rent and generous tenant-improvement allowances to attract tenants to their buildings, the report said.
“Deals are better today than at any time in the past four years and should continue to improve somewhat for the balance of 2010,” the report said.