Honolulu Commercial Real Estate Update
February 17th, 2010 categories: The Market
My friend Mark Bratton, a long-time Honolulu commercial real estatebroker, at Colliers Monroe Friedlander sent me a really good report on the Honolulu commercial real estate market. In general, it looks like this segment of our business has not yet bottomed, however, a turn maybe a year or two away. Here are a few of the more salient quotes.
“…as the combination of the lack of financing capacity, poor market conditions, and the faltering economy drove transaction activity to levels not seen since the aftermath of the Japanese bubble period in the early 1990’s.”
“At this point, properties that are unable to meet their lender’s required loan-to-value ratios could technically be placed into a default situation.”
“Hawaii’s commercial real estate market appears to have weathered the downturn with fewer casualties than those of major West Coast metropolitan markets. Despite weakening market conditions and the drop in transaction activity, the freefall in property values and dramatic upward swings in vacancy rates has not materialized. The jury is still out as to whether a more serious downturn will occur here. Although Hawaii has historically lagged behind mainland markets, the impact of this current recession was simultaneously felt with the rest of the nation.”
CLICK HERE FOR A COPY OF THE 8 PAGE REPORT
If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.
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