Industrial businesses on O'ahu are leasing new warehouse space about as fast as the properties can be built, according to a report by local commercial real estate firm Colliers Monroe Friedlander.

The rough equivalent of a Costco Wholesale store — 146,144 square feet of industrial space — was added to the market and filled in the past six months, Colliers said.

That left the vacancy rate at 1.86 percent, or about where it has been since 2004.

Colliers said it expects demand for industrial space, largely fueled by expanding businesses in Hawai'i's strong economy, will mirror construction of new warehouse property. The company forecasts that there will be about 500,000 square feet of industrial space added to the market this year.

Average asking rent per square foot of industrial space on O'ahu has increased from 99 cents at the end of last year to $1.07, Colliers said.

Mike Hamasu, Colliers research director, said in the report that industrial businesses needing more space have found the tight market frustrating.

"Finding space for expansion or relocation has become an exercise that requires creativity, persistence and often a lot of luck," Hamasu said in the report.

Colliers said there were 55 industrial properties available for lease recently, compared with 132 in 2003 before the vacancy rate dropped below 2 percent.

Reach Andrew Gomes at agomes@honoluluadvertiser.com.