The simple answer to this question is yes.
In our marketplace, vacancy rates are generally lower than most parts of the United States Mainland. In recent offerings, we have seen stronger interest, more bidders, more cash offers, and lower rates of returns for the buyers.
There does seem to be a flight to quality and certainly investors today are demanding immediate cash flow as opposed to waiting several years for monthly cash flows.
With the stock market’s fluctuations our clients are more than happy to receive returns in the 6% to 8% per year range on commercial real estate in Hawaii.