Commercial real estate activity in Hawaii surged during the first six months of the year to $2.2 billion, according to a report released by Colliers International Hawaii. The increase, which was led by hotel sales, represents a gain of 134 per cent from mid-2012 levels.
The report stated that transaction counts for commercial real estate valued at more than $1 million increased by 43 per cent during this time. A total of 110 properties were sold.
If the activity continues at this pace, by year-end it could set a new record for sales volume. The previous one was established in 2005, when $4.3 billion in sales were recorded, according to the Colliers report.
Hotel sales accounted for nearly 80 per cent of the total investment sales volume in the first six months of the year. The largest transactions were the sale of the Grand Wailea resort on Maui, which was reportedly worth $774 million, and the Blackstone Group’s purchase of the Hyatt Regency Waikiki Beach Resort & Spa for $450 million.
The number of land purchases also increased this year. Activity more than doubled from the same time in 2012, according to Colliers. There have been 22 transactions totaling $124 million to date.
Colliers is predicting that 2013 sales will hit levels not seen since the last boom and that the year-end volume could exceed $3.2 billion.
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