The Oahu retail market generated 34,830 square feet of new occupancy in the first quarter of 2018. With seven of the nine Oahu retail trade areas posting positive net absorption, Oahu’s vacancy rate fell from 6.82% to 6.19% since the end of 2017. The majority of the market’s occupancy gains occurred among the island’s recently built or redeveloped centers. Additionally, a sizeable retail vacancy was removed from the market when the owners of King Kalakaua Plaza announced plans to redevelop its retail center into a hotel. The property conversion removed 78,113 square feet of available retail space and reduced Waikiki’s vacancy rate from 12.69% to 8.46%.
Ala Moana Center, International Marketplace, and Ka Makana Ali’i generated nearly 30,000 square feet of growth for the quarter. New openings at the Ala Moana center include Planet Fitness, Brilliant Ox, Junkies Virtual Reality, and Kuone. Adding new life to the center, International Marketplace procured Robin Jeans, Phillip Lim, Surfline Hawaii, and National Geographic Fine Art Gallery. Lastly, Ka Makana Ali’i made the addition of Koko & Palenki, an upcoming women’s clothing boutique, to its retail repertoire.