Hawaii’s commercial real estate market rang up about $2.96 billion in investment sales in 2025, but this was no broad-based buying spree. A small pack of giant fee-simple land deals, many tied to marquee resort parcels in Waikīkī and other vacation corridors, pushed the total skyward and concentrated the action at the very top of the market.
According to Pacific Business News, which summarized Colliers Hawaii’s 2025 investment review, total commercial investment hit $2.96 billion, and Colliers is forecasting roughly a 20% jump in investment activity this year. The firm credits the spike to a handful of oversized land transactions rather than a sustained surge in hotel, office, or retail building trades.
Mega land sales pushed totals
The single biggest transaction was the sale of the land beneath The Royal Hawaiian in Waikīkī, reported at about $510 million. The deal transferred fee-simple ownership while the historic hotel continues to operate under its long-term ground lease. Hawai‘i Public Radio and other outlets reported the buyer as Japan-based Daisho Co., noting that the seller is putting the proceeds to work in line with its long-term strategy.
Other headline transactions were clustered in resorts
Several other eye-catching trades followed the same script: big prices for land under trophy resorts. The ground under Four Seasons Hualālai reportedly sold for roughly $400 million, and most of the land beneath the Hyatt Regency Waikīkī changed hands for about $215 million. Lagoon-front acreage in Ko Olina also cleared the $200 million mark. Together, these hotel-land and resort-parcel sales accounted for the lion’s share of Hawaii’s 2025 investment dollars, pushing the state’s total close to $3 billion. The Bratton Team has a full rundown of the top transactions.
What Colliers flags as risks
Colliers is not exactly throwing a luau over the numbers. The firm warns that rising fuel costs and geopolitical tensions could weigh on travel demand and cool investor enthusiasm, a reminder that tourism trends still set the tone for much of island real estate. Pacific Business News highlighted Colliers’ caution even as it reported the upbeat forecast for more deal activity in the year ahead.
Why it matters for residents and developers
Fee-simple purchases shift who captures long-term revenue and can speed up redevelopment timelines. That matters for neighborhoods that lean on tourist-serving jobs and for communities keeping an eye on access to shoreline parcels. Institutional landowners often have different incentives than leaseholders, which can translate into faster capital upgrades, tougher negotiations, and more intense community scrutiny over permits and proposed projects…