C
ommercial real estate in Hawaii has seen a mixed bag in recent years, but activity is now picking up in various areas. Local experts point to bright spots for the state's commercial real estate sectors.

    In Downtown Honolulu, Jamie Brown, president and co-owner of Hawaii Commercial Real Estate, notes that nearly five years after pandemic restrictions sent workers home, leasing activity has increased significantly. Existing office tenants are committing to long-term leases, which is helping to reduce vacancies. Office-to-residential conversions continue to absorb excess space coming back on the market due to decreased tenant demand.

    CBRE leaders say demand for retail real estate in Hawaii remains strong, particularly in Central and West Oahu. The growth of housing in these areas is driving demand for more retail development. However, local restaurant owners face challenges such as labor shortages and higher costs for employee wages and food.

    Despite these issues, new concepts are emerging in the market. Hotel real estate broker Kevin Aucello notes that while his firm sees fewer transactions, economic shifts favor Hawaii's tourism industry. With new developments underway, it's an "interesting time" for the sector.