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Posted: Monday, April 21st, 2008 10:05 AM HST

Honolulu office vacancy rates rising

By Associated Press

HONOLULU (AP) _ In a sign that Hawaii has not escaped the impact of a weakening national economy, Honolulu office vacancy rates are going up. Commercial real estate firm Colliers Monroe Friedlander reports more than 40,000 square feet of vacant space has been added to the market since Jan. 1. The vacancy rate is now at 7.71 percent, compared with 7.24 percent at the start of the year. So far, the rate is not critical, but the drop is expected to continue. Analysts say if vacancy reaches 10 percent, landlords could be facing problems. Mike Hamasu of Colliers Monroe Friedlander says rental space has been dropping in five of the last six quarters. He says that points to a downward trend and is a reversal of growth in the Honolulu market. (Copyright 2008 Associated Press. All rights reserved)