A 12-year lease in Hawaii's central business district signed by a prominent insurance firm provider hints at a shift for the area, which has been in need of a rebound since the pandemic, when office demand dropped.
Island Insurance signed a lease for 24,879 square feet of office space at 828 Fort Street Mall in Honolulu's Oceanit Center in November 2024. The firm occupies space across three floors, making it the building's largest tenant and qualifying as one of the year's largest office leases.
The Island Insurance deal has been selected by a panel of local industry professionals as the winner of the 2025 CoStar Impact Awards lease of the year for Hawaii.
The company has been a leading insurance provider in the state for 80 years, and its move to the central business district as more employers shift to back -in-the-office models is expected to boost the area's economic activity.
About the deal: Some may consider the move long overdue, as Island Insurance is relocating from space it has occupied for 40 years!
In order to secure the tenant, the landlord, Black Development Corp., and its contractors worked under a tight deadline to customize and modernize the space to meet the tenant's space requirements. Changes include improved indoor air quality and ergonomic workspaces.
What the judges said: "The transition from a 40-year location to a fully customized, modern office space was achieved through strategic problem-solving and collaboration between Island Insurance, the landlord, architects, and contractors. This lease sets a high standard for design, technology and wellness in Hawaii’s office market," said Yifan Chen, assistant professor of finance and real estate at the University of Hawaii at Manoa.
"Moving facilities and investing back in downtown Honolulu benefits our entire community," added Mark Bratton, senior vice president at Colliers.
They made it happen: Principal Broker Sean Tadaki of Commercial Asset Advisors represented both sides in the office lease. The building is locally owned by Black Development Corp., according to CoStar information.
CoStar Market Manager Dominic Capocelli contributed to this report.