Calculate cap rates and net operating income for commercial properties in Hawaii. Compare your results against Hawaii's secondary market benchmarks sourced from CBRE H2 2025.
Hawaii's extremely constrained land supply, high cost of living, and tourism-driven economy create unique CRE dynamics. Cap rates are lower than most secondary markets due to supply scarcity and international demand. Industrial is particularly tight due to the island economy's dependence on imported goods. High barriers to development compress cap rates across all sectors.
| Property Type | Typical Low % | Typical High % |
|---|---|---|
| Multifamily | 4.5% | 6.0% |
| Industrial | 5.0% | 7.0% |
| Retail | 5.0% | 7.0% |
| Office | 6.0% | 8.0% |
Benchmarks sourced from CBRE H2 2025 Cap Rate Survey, JP Morgan, Matthews, and Cushman & Wakefield market data. Ranges represent typical stabilized assets — actual rates vary by asset quality, location, and market conditions.
Hawaii cap rates range from 4.5–6.0% for multifamily, 5.0–7.0% for industrial and retail, and 6.0–8.0% for office. The extreme scarcity of developable land and international investor demand keep rates lower than most comparable secondary markets.
Hawaii's island geography creates absolute constraints on supply — there is no ability to expand into suburban greenfield development the way mainland markets can. This scarcity supports lower cap rates and stronger long-term appreciation. However, the tourism-dependent economy also creates volatility during downturns (as seen in COVID-19).
Hawaii CRE offers strong supply constraints and appreciation potential but requires careful consideration of: the high cost basis, limited exit liquidity, tourism dependency, regulatory environment, and the specialized nature of the market. International buyers (particularly Japanese investors) historically play a significant role in Hawaii's institutional property market.
This tool is for informational and educational reference only and does not constitute real estate investment advice. Cap rate benchmarks are estimates based on published industry surveys and may not reflect current conditions in your specific market, submarket, or asset class. Actual cap rates vary significantly based on property condition, location, tenant quality, lease terms, and local market dynamics. Always consult a licensed commercial real estate broker, appraiser, or investment advisor before making real estate investment decisions.