Hawaii is well known for its world-renowned, pristine white-sand beaches and its near-perfect year-round weather, making it one of the most popular tourism destinations in the world and drawing millions to the islands each year.
The Aloha State is also becoming increasingly popular among commercial real estate investors, who journey to its shores not for a vacation, but to acquire properties.
In 2018, Hawaii saw big-wave investments in commercial real estate, with a record total sales volume of $5.2 billion, according to Colliers Hawaii. That figure — of course — dropped in 2020 and the first half of 2021 because of the COVID-19 pandemic, which disrupted real estate investments on a global basis.
However, interest in Hawaii real estate investment is accelerating again, as more investors resurface and seek to take advantage of the benefits of investing in Hawaii’s lucrative commercial real estate market. Colliers projects that a healthy recovery is on the way for the second half of this year, with investment sales volume anticipated to exceed $2 billion in 2021.
“The lack of supply of properties and available land will accentuate the increasing demand for Hawaii investment properties,” said Mark Bratton, senior vice president for Colliers Hawaii. “I see an accelerating market for limited properties with little or no long-term effects from the pandemic.”