The Oahu retail vacancy rate hit its highest level in more than a decade at year-end 2016 when vacancy rates rose to 8.44%. Subsequently, the steady stream of new store openings throughout 2017 helped to generate positive occupancy growth and boost the year-to-date net absorption for 2017 to 222,965 square feet. This resulted in vacancy rates declining to 7.2% at the end of the third quarter.
The majority of this occupancy growth can be attributed to Ka Makana Alii, Kapolei’s new regional mall. Over the course of the past three quarters, more than 175,000 square feet of tenancy occurred. Notable new tenants that have opened during 2017 include Cheesecake Factory, Lindbergh, American Eagle Outfitters, and Sephora. This center also includes Hawaii’s first Hampton Inn & Suites by Hilton, 24 Hour Fitness, and Applebee’s.