Hawaii industrial market Q1 2025 — Quick take and what it means for owners, developers and tenants

The Hawaii industrial market Q1 2025 opened the year with a mix that matters for every serious owner, developer, lender, and occupier: fundamentals are still tight by national standards, but the direction of change is unmistakable. Total inventory reached 41.88 million square feet, quarterly net absorption fell to (115,001) square feet, vacancy rose to 1.21%—the highest level in more than nine quarters—and direct weighted average asking base rent climbed again to a record $1.56 per square foot per month. That combination means the Oahu industrial market Q1 2025 is no longer a simple story of zero-availability compression; it is now a market where occupier demand has softened at the margin while rent levels remain elevated because land scarcity still constrains long-term supply. At the same time, approximately 604,344 square feet is under construction, and roughly 600,000 square feet is expected to deliver by year-end 2025, creating a real test of how much vacancy can rise before pricing power moderates. For investors and developers, the key issue is not whether Hawaii has become oversupplied—it has not—but whether construction inflation, tariff exposure, and slower local demand will delay delivery, pressure underwriting, and widen the gap between replacement-cost rents and tenant affordability. For tenants, the takeaway is equally practical: record asking base rent per sf per month and rising operating costs are forcing sharper space planning, more lease renewals, and greater scrutiny of submarket selection.

Executive summary: 5 things CRE leaders must know from Q1 2025

• Hawaii industrial vacancy rate increased to 1.21% in Q1 2025, up from 0.93% in Q4 2024 and 0.76% in Q1 2024, but it remains exceptionally low relative to most U.S. industrial markets and still reflects structural scarcity rather than broad oversupply.
• Total inventory expanded modestly to 41.88 million square feet from 41.75 million square feet, confirming that supply growth remains incremental even as developers push projects through the pipeline.
• Quarterly net absorption fell to (115,001) square feet, and five of the last six quarters have been negative, signaling weaker near-term occupancy demand tied to softer local economic conditions and more selective leasing decisions.
• Direct weighted average asking base rent reached a new record of $1.56/SF/month, up from $1.53 in the prior quarter, while the market has averaged about 4.82% annual rent growth over the last six years, underscoring how persistent land constraints continue to support pricing.
• The industrial supply pipeline Oahu story is becoming more important: 604,344 square feet is under construction and around 600,000 square feet could deliver by the end of 2025, yet permitting and construction-cost pressure mean not every announced project will hit its original timeline.

The practical implication is that Hawaii has entered a more analytical phase of the cycle. Owners can no longer rely solely on scarcity rhetoric; they need to track sublease and direct availability, tenant operating costs, and lease rollover risk with more precision. Developers still benefit from long-term undersupply, but the economics of new construction have become far more fragile because replacement costs are rising faster than many occupiers can absorb. Investors should expect more bifurcation between well-located, functional assets and product that needs capital, repositioning, or a more patient lease-up strategy. Tenants should use this transition period to negotiate earlier, renew selectively, and compare occupancy cost across Central Oahu, Honolulu, and West Oahu rather than assuming every option will price the same. In short, the Hawaii industrial market Q1 2025 vacancy net absorption and rent trends point to a market that is loosening modestly in the near term while remaining structurally landlord-favorable over the medium term.

Market snapshot: occupancy, absorption, vacancy, rents and estimated NOI

The market snapshot shows why Hawaii remains one of the most supply-constrained industrial environments in the country even as momentum has cooled. With only 1.21% vacancy, the market is still effectively full, but the rise from prior quarters matters because industrial pricing and occupancy strategy are set at the margin. Negative net absorption does not mean demand disappeared; it means move-outs, contractions, and delayed expansion decisions outpaced new space commitments during the quarter. Because there was 0 SF of new supply delivered in Q1, the vacancy increase came from demand-side movement rather than a flood of completions. That is important for underwriting because it suggests the current softening is cyclical and tenant-specific, not yet a structural supply shock. At the same time, record rents indicate the replacement-cost floor under modern industrial product is still moving higher.

Estimated market NOI (clearly marked estimate): Using the reported asking base rent and operating expense figures, the market can be framed in annualized terms to help owners and investors stress-test income assumptions. Average asking rent of $1.56/SF/month equals $18.72/SF/year, while average operating expense of $0.54/SF/month equals $6.48/SF/year. Applying the 1.21% vacancy rate implies 98.79% occupancy, which translates to approximately 41.37 million occupied square feet out of 41.88 million square feet. Effective gross rent is therefore estimated at roughly $774.5 million per year (41.37M SF × $18.72), while aggregate operating expenses are estimated at roughly $268.1 million per year (41.37M SF × $6.48). On that basis, estimated market NOI is approximately $506 million annually. This is a directional estimate only: actual NOI varies based on recovery structure, rent abatements, downtime, reserve treatment, tenant improvements, leasing commissions, and property-level expense performance.

For owners, the real value in this estimate is not the headline number but the spread between gross rent and tenant operating costs. A market where base rents are high but operating expenses per sf are also climbing can create affordability pressure faster than many pro formas assume. For tenants, occupancy cost is increasingly a combined rent-plus-expense conversation, especially where insurance, wages, and maintenance costs are rising. For investors, the key question is how much of the current pricing reflects durable scarcity and how much reflects replacement-cost inflation that may outrun near-term tenant economics. In Hawaii, both forces are at work. That is why net absorption and vacancy deserve as much attention as headline rents over the next several quarters.

Demand drivers: what's pushing negative absorption and where leasing remains resilient

Hawaii net absorption Q1 2025 turned negative in a quarter shaped by softer local economic signals rather than a collapse in long-term industrial relevance. According to the Q1 market summary, the industrial job count stood at 79,400 in December 2024, while construction employment was down by roughly 1,200 jobs year over year. The broader Honolulu-area labor picture remained relatively healthy, but sector-specific softness matters because industrial occupancy depends heavily on logistics, distribution, trade-linked businesses, contractors, and support services. The same report showed industrial sales activity through October 2024 declined 18.43% year over year, with wholesale sales down 27.0% and retail sales down 16.16%, reinforcing the view that weaker goods movement and consumer demand affected leasing decisions. Even so, the market did not freeze. Lease renewals and transactional activity continued to support occupancy, which is why vacancy remains near frictional levels rather than expanding sharply.

That distinction is critical for underwriting. In a market with almost no available land and very low warehouse availability Oahu-wide, tenants often renew even when they are not growing because the alternative is uncertain, expensive, or operationally inferior. This dynamic supports industrial lease renewals Oahu even when gross leasing volume slows. Small-bay industrial demand also tends to remain more durable than big-box expansion because many local users need infill service space, contractor yards, distribution nodes, or hybrid warehouse-office product close to labor and customers. Last-mile users, food-related operators, construction suppliers, and service-oriented businesses may delay expansion, but they rarely eliminate space needs entirely. That creates a floor under occupancy for well-located, functional buildings.

From a tenant perspective, the main pressure point is no longer just availability; it is total occupancy cost. Rising wage pressure, insurance premiums, and operating expense pass-throughs are hitting the same users that face elevated rents. Tenants with short lease tails should be modeling renewal costs early and comparing whether to stay in place, relocate within submarkets, or reduce square footage through higher utilization. Investors should look closely at tenant mix by industry because users tied to local consumer spending may show more near-term fragility than logistics, infrastructure, defense-adjacent, or essential distribution users. Landlords should continue focusing on lease renewals and transactional activity rather than assuming new tenant demand alone will preserve occupancy. In this phase of the cycle, preserving cash flow through renewals often matters more than trying to maximize headline rent on every rollover.

Supply pipeline: 604k SF under construction and a permit surge — what will actually deliver?

The Hawaii industrial construction pipeline is now the most important variable shaping the next 12 months. There was no new supply delivered in Q1 2025, but the market had 604,344 square feet under construction, with around 600,000 square feet expected to deliver by year-end. On paper, that is a meaningful amount for a market with just under 42 million square feet of inventory and extremely low vacancy. In practice, delivery timing matters more than announced volume because Hawaii development remains vulnerable to entitlement friction, logistics challenges, financing conditions, and contractor pricing volatility. The result is that the pipeline will likely matter, but not every project will hit on schedule or at the underwritten rent level first assumed.

The permit data reinforce both the opportunity and the caution. Building permit volume surged 133.15% in 2024 to approximately $4.22 billion, including increases of 162.27% in residential permits and 105.19% in commercial/industrial permits, according to the Q1 market summary. That level of permit activity signals intent and a broader appetite to push product forward. However, permits are not the same as delivered square footage, especially in a market where labor, materials, financing, and off-island supply chains can all become bottlenecks. This is exactly why the long-tail search term Hawaii industrial construction pipeline 600k sf deliveries 2025 needs a caveat: the pipeline is real, but the delivered outcome remains uncertain.

For owners, the likely consequence is a modest increase in vacancy through 2025 driven more by completions than by demand collapse. For developers, the larger issue is whether new product can be priced high enough to justify current construction economics without shrinking the tenant pool too aggressively. Replacement-cost rents are likely to sit above legacy rents, especially for modern space with superior loading, circulation, clear height, and power. That may widen the split between new and older product, with the latter remaining competitive for cost-sensitive local users. Investors should not treat the permit surge as proof of near-term oversupply; instead, they should evaluate construction delivery timelines, sponsorship quality, pre-leasing, and submarket depth one project at a time. In Hawaii, supply almost always looks more certain in theory than in actual delivered sequence.

Cost pressures: PPI, tariffs and the construction margin squeeze

Hawaii industrial development costs remain one of the biggest constraints on the market’s ability to translate demand into delivered supply. Urban Honolulu CPI increased 4.1% year over year in January 2025, according to the U.S. Bureau of Labor Statistics, underscoring that inflation pressure was still elevated at the start of the year. The market summary also notes that the Producer Price Index for construction materials was roughly 20% above 2020 levels, a meaningful cumulative increase that continues to affect steel, concrete, lumber, fabricated metals, and related building inputs. More recent BLS PPI data also showed ongoing volatility across fabricated structural metal products, concrete-related products, and lumber categories, supporting the view that pricing remains unstable rather than fully normalized. In a Hawaii context, where freight, storage, and procurement timing already add cost friction, that volatility has an outsized effect on development margins. ([bls.gov](https://www.bls.gov/regions/west/news-release/2025/consumerpriceindex_honolulu_20250212.htm?utm_source=openai))

The tariff backdrop adds another layer of uncertainty to the impact of rising construction costs on Hawaii industrial development 2025. U.S. Customs and Border Protection stated in March 2025 that additional tariffs were being collected on certain imports from China, Hong Kong, Canada, and Mexico, including 20% additional duties on goods from China and Hong Kong and 25% additional tariffs on some non-USMCA goods from Canada and Mexico; CBP guidance in 2025 also highlighted 25% Section 232 tariffs on steel and aluminum imports. Even where exemptions or USMCA qualification apply, the practical market effect is broader supplier caution, shorter quote validity, and reluctance to lock long-term pricing. For Hawaii developers who often need imported materials or goods routed through multiple vendors, tariff risk on construction can translate into bid volatility well before a specific duty directly hits a line item. This is why lenders and equity partners are increasingly asking for scenario-based cost models rather than single-point budgets. ([cbp.gov](https://www.cbp.gov/newsroom/announcements/official-cbp-statement-tariffs?utm_source=openai))

Owners and developers should therefore reprice underwriting assumptions. Hard-cost contingencies need to be wider, delivery schedules need more slack, and guaranteed maximum price structures should be reviewed carefully instead of treated as an automatic hedge. In addition, tenant operating costs are moving up at the same time. The market summary’s average operating expense of $0.54/SF/month is a useful starting point, but many occupiers will also face higher insurance, payroll, utilities, and tax-related burdens over time. That means new product may need to command premium rents simply to earn an acceptable return, while some tenants may resist because their all-in occupancy cost already feels stretched. The margin squeeze is therefore not just a developer problem; it affects feasibility, lease-up, tenant retention, and ultimately market delivery volume.

Submarket deep dive: Honolulu, Central Oahu, West Oahu, Windward — and why Kalaeloa matters

The Oahu industrial market Q1 2025 is not moving uniformly, and submarket differences now matter more than market-wide averages. Honolulu remains the largest concentration of industrial inventory with 21,949,475 square feet, direct availability of 248,894 square feet, Q1 net absorption of (85,749) square feet, vacancy of 1.13%, and average asking rent of $1.46/SF/month. This Honolulu industrial market profile shows both resilience and maturity: it remains tight, but it absorbed a sizable share of the quarter’s negative movement. For many users, Honolulu still offers the best infill access and proximity to labor and end demand, yet older building stock, constrained circulation, and functional obsolescence can limit expansion efficiency. Investors focused on Honolulu should underwrite not only occupancy but also re-tenanting friction and capital requirements tied to modernization.

Central Oahu was the relative bright spot and arguably the clearest outperformer. The submarket totals 10,992,638 square feet, with direct availability of 115,750 square feet, positive Q1 net absorption of 27,190 square feet, vacancy of 1.05%, and average asking rent of $1.60/SF/month. That combination of positive absorption, low vacancy, and higher average rents supports the case that the Central Oahu industrial market is particularly attractive for distribution, logistics, and users who need operational efficiency without paying a premium for the most constrained urban infill locations. In any Oahu industrial submarket comparison Central Oahu vs West Oahu Q1 2025, Central Oahu stands out as the submarket with the strongest near-term balance between occupancy momentum and pricing power.

West Oahu, including Kapolei, posted softer numbers: 7,702,290 square feet of inventory, 137,148 square feet of direct availability, Q1 net absorption of (77,874) square feet, vacancy of 1.78%, and average asking rent of $1.50/SF/month. Those figures do not make West Oahu weak in an absolute sense—vacancy is still low—but they do suggest more near-term leasing pressure than in Central Oahu. Investors evaluating West Oahu should focus on tenant mix, building functionality, highway access, and whether demand is tied to stable logistics use or more cyclical local business activity. For occupiers, West Oahu may present better near-term negotiation opportunities than the tighter submarkets, especially for larger requirements or buildings that need downtime to stabilize.

Windward Oahu remains extremely tight and highly specialized, with 1,235,964 square feet of inventory, positive Q1 net absorption of 21,432 square feet, vacancy of just 0.28%, and rents reportedly in the $2.45–$3.00 MG range in Kapaa. That is a reminder that some small, supply-constrained pockets can operate on very different economics than the island-wide average. These locations may work for specific local users, but they are less scalable for larger institutional strategies. Still, they provide evidence that small-bay industrial demand remains healthy where available product is scarce and local service demand is sticky.

The major outlier is Kalaeloa. The submarket registered 7 buildings totaling 126,233 square feet with vacancy at 55.33% after Q1 net absorption of (66,841) square feet. Any analysis of Kalaeloa industrial vacancy 55% reasons and outlook should be handled carefully because the sample is small and can be distorted by a handful of lease expirations, property-specific issues, building condition, or tenant mix changes. It should not automatically be interpreted as a market-wide signal for Oahu industrial fundamentals. Instead, Kalaeloa is best viewed as a reminder that functional quality, sponsorship, and asset-specific leasing strategy matter even in a structurally supply-constrained market. For opportunistic investors, that can create selective value; for the broader market, it is more an exception than a template.

Sales activity, cap-rate signals and what investors are paying for industrial in Hawaii

Hawaii industrial sales activity 2024 weakened alongside softer demand indicators. The market summary reported industrial sales activity through October 2024 down 18.43% year over year, while wholesale and retail sales also fell materially, helping explain why some investors and lenders have become more selective. Lower transaction volume does not automatically imply distressed pricing, but it usually means greater bid-ask tension, longer execution timelines, and more scrutiny around lease rollover and cash-flow durability. In Hawaii industrial real estate, that dynamic is especially relevant because thin transaction velocity can make price discovery harder even in a fundamentally scarce market. When fewer deals trade, every asset has to do more work to prove its income story. That is why qualitative factors like location, functionality, parking, yard capacity, and tenant credit can have a larger pricing impact than in deeper mainland markets.

Cap-rate discussions should therefore begin with NOI quality rather than headline market scarcity. Landlords are still generally achieving annual escalations in the 3% to 5% range, which supports long-term income growth, but investors should not assume those escalations offset all cost pressure automatically. If insurance, taxes, maintenance, and capital expenditure needs rise faster than expected, nominal rent growth may not fully translate into net income growth. Similarly, if negative absorption persists in selected pockets, release assumptions need to be tested more conservatively. Narrower buyer and lender pools mean that a building with near-term rollover, below-market functionality, or tenant concentration risk can see disproportionately softer demand from capital sources. That is why industrial investment Hawaii 2025 strategy should emphasize lease term structure, recoverability of expenses, tenant quality, and re-tenanting optionality.

Tactical recommendations for tenants, investors, developers and landlords (near-term)

In the current environment, strategy needs to be role-specific rather than generic. Tenants, investors, developers, and private owners are facing the same market data but not the same decision set. The right move depends on capital structure, lease exposure, timing, and the ability to manage execution risk. What follows is practical guidance designed for near-term decision-making, not abstract market commentary. The goal is to respond to current conditions—negative absorption, low but rising vacancy, elevated rents, and growing cost pressure—while still positioning for Hawaii’s longer-term structural undersupply. That is where value creation will come from over the next 12 to 24 months.

• For industrial tenants and institutional investors: favor high-quality, well-located assets and locations with durable logistics utility. If you are asking where to invest in Oahu industrial real estate 2025, Central Oahu deserves priority because it combined positive absorption, low vacancy, and the highest quoted average asking rent among the major larger submarkets. Select Honolulu pockets also remain compelling where infill access and service density matter more than newer design standards.
• For occupiers: negotiate renewals early and build tenant improvement contingencies, expansion rights, and operating cost clarity into any extension. In a market where all-in occupancy costs are rising, preserving functional control can be more valuable than chasing a nominal face-rent discount.
• For developers and landlords: tighten cost contingencies, phase deliveries when possible, and prioritize pre-lease strategies. New product should be priced with replacement cost discipline, which likely means rents above legacy stock, but timing and lease structure need to accommodate tenant affordability realities.
• For private capital owners: focus on asset management execution. Reduce downtime, pursue lease renewals, capture modest escalations where justified, and evaluate whether capital expenditures truly generate yield uplift or simply preserve competitiveness. Be conservative on rent reversion timing and avoid assuming every vacancy will lease immediately just because market vacancy is low.

The common denominator is selectivity. Investors should not buy “industrial in Hawaii” as a broad theme without testing submarket and building-specific risk. Developers should not equate permit momentum with financeable demand. Landlords should not confuse low vacancy with frictionless rollover. And tenants should not assume rising vacancy means a broad tenant-favorable reset is underway. The market is transitioning, but it remains constrained enough that execution quality will matter more than broad directional calls.

Underwriting checklist for new industrial development in Hawaii (hard cost, schedule, entitlement, tariff scenarios)

If you are evaluating under construction industrial Hawaii opportunities, the underwriting checklist needs to reflect both local scarcity and elevated execution risk. Hawaii development can still produce attractive long-term outcomes, but only when budgets and schedules are stress-tested against realistic delivery conditions. The checklist below is designed to help sponsors, lenders, and investors avoid the most common blind spots in a market where cost overruns and timeline drift can materially change return profiles. It should be used at concept stage, pre-loan diligence, and again before final GMP or major procurement commitments. In this environment, a static underwrite is a weak underwrite. Scenario analysis is the baseline.

• Baseline hard-cost estimate plus contingency: start with a current market cost estimate and include a 15% to 25% contingency range to reflect the market summary’s note that construction material costs remain roughly 20% above 2020 levels.
• Tariff scenario analysis: include a downside case with a 10% to 15% materials premium on exposed components. Any model addressing how tariffs affect Hawaii construction costs industrial projects should identify which inputs are imported directly or indirectly through suppliers and how long pricing can be held.
• Permitting and entitlement buffer: do not equate the 2024 building permits surge with immediate delivery certainty. Add schedule reserves for approvals, procurement, shipping, contractor sequencing, and utility-related delays.
• Pre-lease thresholds: define what level of committed tenancy is required for financeability under today’s lender assumptions, and test whether projected rents remain supportable if local GDP, job growth, or tenant demand soften.
• Operating expense escalation modeling: use the current average operating expense of $0.54/SF/month as a starting point, then layer in insurance, property tax, utility, and maintenance escalation scenarios rather than holding expenses flat.
• Exit and stabilization stress test: model slower lease-up, longer downtime between tenants, and modest cap-rate expansion to avoid relying on best-case absorption assumptions.

For both lenders and sponsors, the purpose of this checklist is to protect against false precision. Hawaii’s industrial fundamentals are supportive, but they do not eliminate development risk. A project can be directionally right and still miss target returns if schedule, procurement, and pricing assumptions are too aggressive. The market rewards disciplined execution far more than optimistic forecasting. That is especially true when new deliveries are competing against lower-cost legacy stock and against occupiers already dealing with rising operating costs. In short, build only what can survive a tougher scenario than the base case.

Outlook: what to expect through 2025 — vacancy, rents and delivery timing

The near-term outlook is best described as controlled loosening rather than reversal. Colliers’ market view points to a modest, gradual rise in vacancy through 2025, largely driven by new deliveries instead of a broad-based collapse in demand. That framing fits the data: vacancy has increased, absorption has been negative in five of the last six quarters, and a measurable amount of product is under construction, yet the market still operates from a historically tight starting point. Structural land scarcity remains the most important long-term support for rents and landlord leverage. Limited entitled industrial land, high replacement costs, and slow development timelines continue to reduce the probability of true oversupply. The main uncertainty is not whether supply exists, but how quickly and at what cost it can reach the market.

For industrial rent growth Oahu, the most likely path is stable to modest upward movement rather than another sharp acceleration. Existing product may face more negotiation at rollover in softer pockets, but landlords are still generally achieving annual escalations of 3% to 5%, and new deliveries are likely to seek pricing above legacy rents due to construction economics. That creates a two-tier market in which newer product commands a premium while older product competes on occupancy cost and immediate usability. The industrial rent growth forecast Hawaii 2025-2026 therefore depends on product type: premium space should hold firmer pricing, while functionally average inventory may experience more concession-driven leasing even if quoted rents remain relatively steady. If deliveries slip, rent pressure could remain firmer for longer; if they arrive on time into a softer demand backdrop, vacancy may climb a bit faster before stabilizing.

The key risks remain visible. Inflation could reaccelerate, construction material pricing could remain volatile, tariff-related costs could pressure new development budgets, and slower economic growth could reduce tenant expansion plans. Permit activity also may not translate cleanly into completed supply, which means both bullish and bearish projections can be wrong if they rely too heavily on announced pipelines. Over the next 12 months, the most attractive investment opportunities are likely to remain selective rather than broad-based: Central Oahu, newer product with long-term leases, and assets with strong functional utility should attract the most durable interest. In other words, Hawaii industrial remains investable, but the next phase will reward underwriting discipline more than generalized scarcity narratives.

Want a tailored investment / development briefing for your portfolio?

If you are evaluating industrial investment Hawaii 2025 opportunities, a generic market read is not enough. Portfolio decisions should be tied to submarket fit, lease rollover exposure, rent sensitivity, operating cost pressure, and the real probability of new competing supply arriving on schedule. A tailored briefing can isolate which assets are positioned to outperform under modestly higher vacancy, which development sites remain feasible under harder cost stress, and which tenant strategies make sense by submarket. For investors, that means focusing on deal-specific durability rather than broad market averages. For owners and developers, it means turning market data into an actionable operating and capital plan. For occupiers, it means making location and timing decisions before options narrow again.

• Request a 30-minute portfolio assessment focused on absorption sensitivity, vacancy scenarios, submarket suitability, lease rollover exposure, and NOI stress testing using the estimate framework outlined above.
• Ask for custom underwriting templates that incorporate tariff and material-cost scenarios, delivery timeline buffers, operating expense growth, and re-tenanting assumptions relevant to Hawaii industrial assets.
• Use the consultation to strengthen investment due diligence for Hawaii industrial properties 2025, including submarket comparisons, development feasibility review, and tenant operating cost analysis.
• If you are planning a buy, build, hold, or lease decision in the next 6 to 18 months, schedule a direct conversation with the Hawaii Industrial Advisors team through the firm’s contact or consultation form.

Data notes, assumptions & methodology

Hawaii industrial market Q1 2025 data points in this article are primarily drawn from the provided Q1 2025 market summary, including inventory, net absorption, vacancy, asking base rent, operating expense averages, under-construction square footage, permit growth, submarket figures, and the stated market outlook. External current-source context was added to strengthen the inflation and policy discussion. The U.S. Bureau of Labor Statistics reported that Urban Honolulu CPI increased 4.1% year over year in January 2025, while BLS producer price materials series and news releases showed continued volatility in construction-related categories such as fabricated structural metal products, concrete-related products, and lumber. U.S. Customs and Border Protection also published 2025 guidance confirming additional tariff actions affecting certain imports from China, Hong Kong, Canada, and Mexico, along with ongoing steel and aluminum tariff measures. ([bls.gov](https://www.bls.gov/regions/west/news-release/2025/consumerpriceindex_honolulu_20250212.htm?utm_source=openai))

NOI estimate methodology: annualize the average asking base rent of $1.56/SF/month to $18.72/SF/year; annualize the average operating expense of $0.54/SF/month to $6.48/SF/year; convert 1.21% vacancy to 98.79% occupancy; multiply occupancy by total inventory of 41.88 million square feet to estimate 41.37 million occupied square feet; multiply occupied square feet by annual rent to estimate roughly $774.5 million of effective gross rent; multiply occupied square feet by annual operating expense to estimate roughly $268.1 million of operating expenses; subtract to estimate approximately $506 million in NOI. This is an estimate only and should not be interpreted as appraised market income or a substitute for property-level underwriting. Actual cash flow varies by lease structure, rent recovery, reserves, concessions, downtime, tenant improvements, and capital requirements.

Limitation: transaction-level pricing and cap-rate comparables were not provided in the source summary, so any acquisition or disposition decision should be supplemented with current sale comps, lender feedback, and broker guidance specific to the asset, tenant roster, and submarket. That is especially important in a market where transaction volume can be thin and pricing dispersion between functional and challenged product can be wide.