Retail Sector Takes a Step Backward
After posting two solid quarters of occupancy gains, Oahu’s retail market reversed direction during Q2 2022 and registered a loss of 53,508 square feet. Oahu’s retail vacancy rate, which had fallen to 6.86% during Q1 2022, rose to 7.17% at the end of Q2 2022.
Despite staving off another surge in Omicron infection rates in May and June 2022, more challenges emerged to confound the retail market’s attempt to begin its recovery. In addition to existing supply chain challenges and a tight labor market, retailers faced inflationary hurdles that fueled price increases not seen in 40 years.
Key Takeaways
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Oahu’s retail market lost 53,508 square feet of occupancy during Q2 2022
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Retail sales are projected to decline as inflation takes a bigger bite out of consumers’ budgets
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Leasing activity slowed during Q2 2022, with store openings hampered by added challenges
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Recessionary fears dictate near-term outlook
