Retail Sector Resiliency
Retailers faced an inordinate number of challenges as they entered the third year impacted by the COVID-19 pandemic. Hurdle after hurdle emerged to disrupt and alter consumer buying habits, as retailers steadfastly worked through a storm of adversities to appear battered, beaten, but still defiant. Nevertheless, in 2022, Oahu’s retail market posted a solid 268,815 square feet of year-end positive occupancy as vacancy rates fell below pre-pandemic levels to end Q4 2022 at a 5.54% vacancy rate.
Year-end 2022 occupancy gain of 268,815 square feet brought vacancy below pre-pandemic levels
Oahu average asking base rent increased to a record high of $4.43 psf/mo
Oahu consumer retail spending bolstered by rising tourism expenditures
Inflation and recessionary concerns paint an uncertain outlook for 2023