After meeting with a dozen different hungry large cap buyers last week, it became apparent that the demand for Class A commercial real estate in Hawaii is on the rise. One after another, the major players told our team they are looking for a 7 to 7.5% internal rate of return on the largest transactions in Hawaii and the west coast. With loan rates remaining very low, this provides great positive leverage for these investment funds and clearly safe and secure returns well above bank and CD rates.
Know anyone looking to sell? NOW maybe the best time in the next 2 years.