Hawaii Industrial Figures Q3 2026

Hawaii’s industrial market softened for another quarter in Q3 2026, though the pace of occupancy losses slowed quarter-over-quarter. Net absorption totaled negative 42,000 sq. ft., an improvement from negative 134,000 sq. ft. in Q2 2026. Vacancy held at 2.4%, while availability rose 30 basis points (bps) quarter-over-quarter to 3.0%, suggesting additional space is being marketed ahead of move-outs. Leasing activity eased 10% to 121,464 sq. ft., and the average asking rent declined to $1.85 per sq. ft. from $1.93 per sq. ft. No new space delivered during the quarter, and 263,000 sq. ft. remained under construction across three properties.​

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Market fundamentals have loosened gradually since Q3 2023, though vacancy remains modest. Vacancy rose 140 bps from 1.0% to 2.4% over the period, while availability doubled from 1.5% to 3.0%. After early occupancy growth, the market recorded sizeable contractions, including negative 161,000 sq. ft. in Q3 2024. Asking rents have fallen nearly 13% from their Q2 2025 peak of $2.12 per sq. ft. Looking ahead, the 263,000 sq. ft. under construction could add to vacancy as projects deliver, keeping pressure on rents in the near term.​