Alexander & Baldwin (A&B) has announced a new warehouse development project in Kapolei, Oahu, signaling continued confidence in the strength of Hawaii's industrial and retail markets. The project, located in the Komohana Industrial Park, aims to convert underutilized yard space into new warehouse facilities, addressing the ongoing demand for high-quality industrial space. This expansion comes as the company strategically leverages its existing industrial-zoned land to meet the needs of local businesses and evolving consumer preferences, such as the increasing popularity of buy-online-pick-up-in-store options.
According to a recent press release from PRNewswire, the Komohana Industrial Park, upon completion, will offer nearly 350,000 square feet of gross leasable area (GLA), with additional land available for future development. This demonstrates A&B's commitment to proactively meeting the demands of a competitive market. The ability to pre-lease 75% of the expansion to a high-quality national retailer underscores the strength of both the industrial and retail sectors in Hawaii, as highlighted by the company's senior vice president of leasing.
This development is particularly significant in Kapolei, an area that has been experiencing rapid growth in warehouse construction. The demand for modern, efficient warehouse space has been driven by factors such as the need for retailers to carry substantial inventory and provide faster delivery times to meet consumer expectations. A&B's history reveals a consistent adaptation to Hawaii’s economic shifts, playing a crucial role in the evolution of various industries. Their portfolio expansions, such as the $26.5 million Kapolei warehouse acquisition in 2019, highlight their ongoing investment in commercial real estate.
The expansion of industrial space in Kapolei also reflects broader trends in the Hawaiian economy, especially the growth of e-commerce and the importance of efficient supply chains. This has been further underscored by Amazon’s plans to open a significant facility in the area, as reported by Pacific Business News in December 2023. The new A&B development is poised to capitalize on this trend, offering valuable space for businesses seeking to thrive in a dynamic market.
