The Bratton Team

Building Lease Expected To Be Catalyst for Construction Activity

Following the signing of a 15-year lease of an industrial warehouse by HPM Building Supply at 91-424 Kauhi St., construction activities are expected to ramp up on Oahu, Hawaii.

This deal received a 2024 CoStar Impact Award for lease of the year for Hawaii, as judged by real estate professionals familiar with the market.

As part of a strategic expansion for the locally based construction materials supplies company, HPM is eyeing collaboration with state and county entities to bring more affordable housing to the island of Oahu.

The tenant intends to expand its product lines for the construction industry, including manufacturing certain materials that will be directly related to the affordable housing market. With more than 100 years as a source of building supplies in Hawaii, HPM has 17 locations across the state. In addition to its more than 2,000 product lines, the company also offers house plans.

The landlord undertook an extensive renovation of the building before the lease, which included new lighting, an upgraded electrical system and a newly paved parking lot.

Impact Award judge Mark Bratton, senior vice president at Colliers, said the lease not only got done in the country’s tightest warehouse market but will help support the creation of more affordable housing on Oahu.

About the Deal: The tenant, HPM Building Supply, has signed a long-term lease for the building that was constructed in 1977. The Class B industrial warehouse totals 53,640 square feet and includes two docks, four drive-ins and a clear height of 20 feet, according to CoStar data.

What the Judges Said: “I chose the HPM Building Supply lease as the lease of the year because it is a new lease, not a renewal, and is more than double the term length at 15 years versus seven years. Further, there was a substantial amount of rent concession by the landlord to update the building,” said Evan Ketter, leasing manager at MW Commercial Realty.

They Made It Happen: Commercial Asset Advisors’ Jay Elicker and Sean Tadaki helped facilitate this deal.