Hawaii industrial is concentrated across Honolulu (Oahu) and Maui (Lahaina, Kahului, Wailea), with secondary product on the Big Island (Kona, Hilo) and Kauai (Lihue, Princeville). Hawaii's CRE market is structurally defined by extreme land scarcity, a tightly regulated entitlement framework, a deep tourism and military employment base (Pearl Harbor, Hickam, Schofield Barracks, Kaneohe Bay MCBH), and the highest construction costs in the country (per Department of Business, Economic Development & Tourism reports, 2024); the post-Lahaina-fire (August 2023) Maui rebuilding cycle is a central ongoing CRE variable . Honolulu-area distribution and logistics product anchors the institutional industrial bid pool, with regional-bank and life-company competition on stabilized Class A bulk distribution and last-mile product.
Active capital sources
- Life Companies
- CMBS Lenders
- Hawaii Regional Banks
- National Debt Funds
Loan programs we place
- Bulk Distribution Perm Debt
- Last-Mile Industrial Acquisition
- Build-to-Suit Construction-to-Perm
- Industrial Refinance / Recapitalization
Source notes
- BLS QCEW, 2025
Frequently asked questions
What LTV is realistic on stabilized Honolulu industrial?
Stabilized institutional bulk distribution and last-mile product typically clears 60% to 70% LTV through life companies and CMBS; debt yields of 8.5% to 10.0% effectively size most highly leveraged executions . Single-tenant credit-tenant net-leased product with long WALT can stretch into the 65% to 75% range on the back of underlying tenant credit.
Do you finance cold storage and specialty industrial in Hawaii?
Yes. Cold storage, food-and-beverage processing, and aerospace-supplier industrial each draw specialty lender pools with distinct underwriting standards. The specialty industrial debt funds active on cold-chain and food-grade product treat large-format institutional cold storage as a primary asset class, and life-company correspondent shops with food-and-beverage industrial expertise quote stabilized institutional product on competitive terms.
What is Hawaii's transfer tax structure for commercial industrial?
Hawaii imposes a graduated state conveyance tax: for commercial property over $10 million, the rate is $1.00 per $100 of consideration (1.00%) and rises to $1.25 per $100 above $10 million for non-resident transferees (Hawaii Department of Taxation, 2024). Total transfer-side tax burden on a typical $10-25M Hawaii commercial transaction runs roughly 1.00% to 1.25% of consideration, among the highest in the country.
Are construction loans available for build-to-suit industrial in Hawaii?
Yes. Construction-to-perm executions for credit-tenant net-leased product draw competitive bidding from regional banks and a focused subset of national debt funds. Required equity is typically in the 25% to 35% range with partial recourse during construction burning off at stabilization, and long-WALT take-out through CMBS or life companies is the typical exit. Pre-construction lease execution with an investment-grade tenant materially improves both pricing and proceeds: the same physical building with a 10-year credit-tenant lease in hand at construction-loan closing typically clears 50 to 100 basis points tighter than a comparable speculative build, frequently with materially lower required equity.