The upcoming $61 million redevelopment of the Waikiki Trade Center as a new condotel will further shrink Hawaii’s available office space. “There has been a steady climb of activity in the sale of office properties in Hawaii over the past 24 months,” says Matthew Bittick, CBRE Brokerage Services senior vice president. Bittick notes that the state of Hawaii is currently in discussion to acquire Alii Place, and there have been rumors the Ala Moana Building will be redeveloped oped from office to another use.
Despite the squeeze, new Hawaii Office towers are not on the drawing board. “We don’t expect new construction to occur anytime soon as the demand isn’t there yet,” Bittick says. “Base rents need to increase significantly before a new office building will pencil.”