Soft Market Conditions Continue
Oahu’s retail market posted its third consecutive quarterly loss with 30,637 square feet of net absorption as vacancy rates rose to 7.25%, the highest level since the pandemic started. More than 370,000 square feet of tenancy was lost during the past eighteen months as COVID-19 took its toll on the island’s retail sector.
The most notable closure occurred at Ala Moana Center when Shirokiya’s Village Walk and Vintage Cave restaurants shut down. After a protracted lawsuit between the landlord and tenant, we decided to include these available spaces in our 3rd quarter counts. This loss of more than 45,000 square feet represented the lion’s share of vacancy for the quarter.
Negative net absorption recorded for the third consecutive quarter
Vacancy rose to 7.25%, its highest level during the past five years
Construction pricing and supply chain issues impacted retailer expansion plans
Challenges remain as Delta variant impedes retail market recovery