Press Release:
New Kahului warehouse to break ground in Q4
Jul 18 2023
COMMERCIAL REAL ESTATE
New Kahului warehouse to break ground in Q4
By Stephanie Salmons Reporter, Pacific Business News
Jul 14, 2023
A new warehouse facility in Kahului – construction of which is expected to be finished in the first quarter of 2025 – will bring Class A commercial and industrial space to the Valley Isle.
The project, Maui Airport Center, is a concrete tilt-up construction and will feature a large solar array; 12 “high dock” loading docks; 10 “grade level” loading docks; flexible office buildout; heavy power; ESFR, or early suppression fast response, sprinklers; and “high visibility” building signage, among other features, according to materials provided by CBRE, which is marketing the facility.
Located at 640 Haleakala Highway, Maui Airport Center, which is being developed by R.D. Olson Development, will have two buildings and offer a number of flexible uses.
“What we envision with the Maui Airport industrial project does not exist on Maui, only on Oahu. It’s now time for [Maui] to have a Class A industrial product,” Laren Eustace, an associate with CBRE’s Industrial and Logistics Group, said in emailed responses to questions from Pacific Business News. “The property is extremely rare and almost impossible to replicate. It offers the most strategic location.
“Eustace said, too, that all approvals are in place for a potential buildout of 136,000 square feet. “A Class A product like this has never been developed at the Kahului Airport, where it makes the most sense to be located,” he continued. “The property is also a short 1.5-mile direct route from the Kahului Harbor, where all other goods come into Maui. This property is completely unique in the market.”
The project received Special Management Area approval from the Maui Planning Commission in April and is scheduled to break ground later this year, Eustace said. According to Eustace, it has been a decade since a comparable product with similar amenities was built in the Kahului and Wailuku market, and that building has been 100% leased since it was built.
“Demand is strong and Maui is even more underserved with high quality Class A logistics/warehouse product,” Eustace said. “Maui is already a tight market with consistent occupancy of around 98%, but what R.D. Olson will deliver is rare and will make an impact on the demand.”
A first-quarter industrial report from CBRE noted that industrial availability on Maui declined to 1% in Q1. With approximately 8.73 million square feet of net rentable area, the Valley Isle accounts for 16% of the state’s industrial market distribution, the report noted. Leasing is now underway. According to Eustace, unit sizes are flexible on a first- come, first-serve basis, with sizes ranging from 3,000 square feet for a single unit, up to 136,000 square feet if a tenant were to take the entire project, including mezzanine office spaces.
A rendering of the Maui Airport Industrial project planned for Kahului – R.D. OLSON DEVELOPMENT