COVID-19 Variants Dampens Oahu Retail Market Outlook
As a hopeful sign that Oahu’s retail market is beginning to stabilize, more than 28,500 square feet of occupancy gains occurred in Q4 2021. Vacancy rates, which hit a five-year high of 7.25% during Q3 2021, drifted downward to 7.08% during the past quarter. This welcome change follows the loss of more than 152,000 square feet of store closures reported during the first three quarters of the year.
Unfortunately, Oahu’s economy mirrored the ebb and flow of COVID-19 infection and hospitalization rates during 2020-2021. Business optimism surged when infection rates dropped to low double digits during Q2 2021, then fell when the Delta variant emerged in August 2021. Hospitalizations rose to record highs, resulting in a dramatic slowdown in visitor arrivals during September and October as Governor Ige advised tourists not to come to Hawaii.
Key Takeaways
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Positive Q4 2021 net absorption of 28,510 square feet
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Vacancy declined to 7.08% from 7.25% during the past quarter
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Both on-line and in-person retail sales benefited from a positive holiday shopping sales boost
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Retail market recovery dampened by Omicron’s uncertainty
