Pandemic Fears Begin to Subside As Retailers Start the Rebuilding Process
Since the onset of the COVID-19 pandemic in 1Q2020, a total of 226,208 square feet of retail shops have closed. While Oahu’s 2Q2021 loss of 23,655 square feet of occupancy boosted vacancy rates to 7.11%, the pace of store closures slowed during the past quarter.
As the pandemic’s impact on Oahu’s economy starts to wane, business and consumer optimism is beginning to emerge. The steady progress made through the State’s immunization program resulted in more than 50% of the population being inoculated, which qualified Oahu to rise to Tier 4 of the City’s 5-Tier Reopening Strategy on June 11th.
There is a strong belief that the 60% inoculation rate, which is required for Oahu’s economy to enter Tier 5, will soon be achieved (Oahu is currently at a 58%). Tier 5 is the least restrictive of Oahu’s Tiered Reopening Plan and would allow restaurants, bars, theaters, bowling alleys, arcades and other commercial attractions to boost their occupancy rates from 10 to 25 people per party. Once a 70% inoculation rate is achieved, all restrictions will be lifted and Oahu’s economy will fully reopen.
Key Takeaways
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Retail market continued to soften posting a 2Q2021 loss of 23,655 square feet of occupancy
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Vacancy rates rose slightly from 6.97% to 7.11% during the past quarter
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Restaurant revenues surge upward
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Retail rents rebound after dip in 2020
