Commercial properties in Hawaii enjoyed a significant increase in 2010 with total sales of $1.5 billion as reported in the March 4th issue of the Honolulu Star Advertiser. Although this is still below the $4.28 billion in 2005, the trend is expected to increase and surpass $2 billion in 2011 as estimated in an article in this week’s issue of Pacific Business News.
The top 5 transactions totaled $658 million and included the Pearlridge Center at $245 million and Bishop Square for $230 million. After these and a few other large transactions, it dropped to 24 others over $10 million and most of the remaining 128 sales were for properties under $4 million.
From a category standpoint, hotels had 10 major sales of which most were distressed properties. 2011 should follow suit with more distressed trading due to pressure from lenders. Retail continues to be a favorite category, as increased consumer sales have helped to turn some of these assets into more desirable acquisitions with gradually increasing rents and returns. In addition to the Bishop Square complex, office buildings were second in the mix with total sales of $314 million.
If you’re interested in commercial real estate investment in Hawaii, contact me for more information.