ESC Pacific Acquires Historic Podmore Building in Downtown Honolulu with CBRE Hawaii Capital Markets

ESC Pacific, an international architecture, engineering and environmental consulting firm with operations in Japan, Guam and the United States, has acquired the Joseph W. Podmore Building at 202 Merchant Street in Downtown Honolulu, the firm announced. The privately negotiated, off-market transaction closed August 18, 2026, with CBRE Hawaii Capital Markets representing ESC Pacific from sourcing through close. The company will establish its U.S. headquarters at the property.

A Historic Asset in the Downtown Honolulu CBD

Constructed in 1902 of Hawaiian blue-gray basalt, the two-story Podmore Building totals 4,638 square feet and sits at the corner of Merchant and Alakea Streets in the Downtown Honolulu central business district. The structure has been listed on the National Register of Historic Places since 1983 and is recognized as one of the few surviving cut-stone commercial buildings of its era in Honolulu.

ESC Pacific will occupy the building's second floor as its U.S. base of operations. The ground floor will continue its longstanding restaurant use, maintaining the property's mixed-use character. The sale price was not disclosed.

"The Podmore stood out for its history, its location, and what it represents," said Eric Newman, President of ESC Pacific. "We are proud to become its next steward, to establish our U.S. home here, and to preserve the historic character of this part of downtown Honolulu."

An Off-Market Search Spanning a Year

Rather than pursue a marketed listing, ESC Pacific conducted a quiet, locally driven search over the course of approximately one year, drawing on local market knowledge and relationships to identify a property suited to its long-term objectives. The firm's deliberate approach ultimately led to the Podmore Building, a landmark asset that had not been publicly listed for sale.

Matthew McKeever, Senior Associate with CBRE Hawaii Capital Markets, advised ESC Pacific throughout the process. "The best opportunities in this market are rarely the ones being advertised," McKeever said. "ESC was looking for the right long-term home, not just an available building, and finding it took a private, locally driven search. It was a privilege to help a firm of this caliber establish itself in downtown Honolulu."

Market Context: Downtown Honolulu Office Fundamentals

The acquisition comes as Honolulu's office market shows signs of gradual stabilization following several quarters of occupancy losses in 2024 and 2025. The broader Honolulu office market recorded positive net absorption of approximately 42,000 square feet in the second quarter of 2026, the second consecutive quarter of demand gains. Overall vacancy stood at 11.2% in Q2 2026, down 30 basis points from the prior quarter and 40 basis points year-over-year, with average asking rents at $3.48 per square foot per month on a gross basis.

Within the Downtown Honolulu CBD specifically, Class A vacancy edged up to 11.6% in Q2 2026 on modest negative net absorption, partially reversing gains from the first quarter. Average Class A fully serviced asking rents held at approximately $3.41 per square foot per month. Forecasts point to Class A vacancy trending toward 10 to 11 percent by year-end 2026, suggesting a market in the early stages of recovery.

ESC Pacific's transaction reflects continued interest from international firms and private capital in establishing a long-term presence in downtown Honolulu. As an owner-occupier acquiring a compact, historically significant asset in the CBD, the firm's approach is consistent with an owner-user model rather than large-scale portfolio activity.

About the Parties

ESC Pacific is an architecture, engineering and environmental consulting firm operating across Japan, Guam and the United States. The Podmore Building acquisition marks the firm's establishment of a permanent U.S. headquarters. CBRE Hawaii Capital Markets provided investment sales advisory services on behalf of the buyer.

Sources: CBRE Press Release