The Oahu retail market posted a loss of 124,960 square feet of net absorption at the end of 2017’s first quarter, resulting in an increased vacancy rate to 9.17% from 8.44% at year-end 2016. Underlying the contraction in the market was the vacancy left after the 147,000-square foot Kmart closed at Waikele Center in Leeward Oahu.
Fortunately, the market experienced some positive growth to offset this loss as two former Sports Authority stores were leased over the past quarter. The Kapolei Commons location was leased to Inspiration Furniture and the Ward Center location will be used temporarily as an art exhibit for the Honolulu Biennial through May 2017. Without this leasing activity, the island-wide vacancy rate would have exceeded 10% for the first time in over eighteen years.