A recent investment survey by Korpacz suggests that 2010 was a great year for “core” markets and 24-hour major cities around the globe for commercial real estate investment. We have seen a notable increase in demand for class A properties here in Hawaii but sluggish demand for class B and C properties. With loan rates still low and investors having a strong appetite for “bricks and mortar,” over other types of investments many investors are now heading into secondary or smaller markets. In 2011 investors will start to look at Class B properties and we predict those prices will begin to lift too.
Hawaii has seen a decent market in 2010 for commercial real estate sales and is expected to benefit greatly with more money and more investors, again, looking at the Hawaiian islands for commercial real estate investments.