Oahu Commercial Real Estate – Time to Buy Commercial Condos?

Tired of leasing space for your business? Investing in commercial condos today may be another option…

Commercial condo projects on Oahu have had a traditionally bumpy time. While a few office condo or mixed use projects have done reasonably well dating back to Century Center and Century Square back in the 70s and 80s, the industrial condo projects have not fared as well. One of the nicest industrial projects, the Pearl City Industrial Park, was taken over by Honfed, the lender, when the sales didn’t reach the developer threshold in the early 80s. It is now owned by A & B and fully leased. 

Flash forward to 2010 and we see the market struggling again with over 500,000 square feet of vacant industrial property as the Pacific Business News has reported. Besides the Kapolei Spectrum, which was taken over by new York based lender iStar capital, and Waipio Business Center, taken over by GE Financial Services, there are other smaller projects that have faltered. Currently, the prices of remaining units have been dropped to levels much lower than original, with prices up to 33% lower, but the projects continue to struggle due to financing difficulties. This could be a good time for an owner user to acquire top quality space for a reasonable price! Unlike residential real estate, most of these products are not in MLS. Contact me for more information on commercial condos that are available in the marketplace.