After gaining nearly 1.3 million square feet of net absorption during the past fifteen quarters, Oahu’s retail market’s momentum slowed. The third quarter of 2018 posted a loss of 9,334 square feet of occupancy as vacancy rates remained relatively static at 6.08%. Despite the slight third quarter loss in occupancy, year-to-date net absorption remained a robust 213,585 square feet.
Flourishing during the year, regional malls, power centers, and resort retail centers are responsible for most of the occupancy gains. As mentioned in previous reports, newly-built space located at Ala Moana Center, Ka Makana Ali’i, and International Market Place has monopolized the retail headlines with numerous new leases. This year’s opening of Uniqlo at Ala Moana Center, Whole Foods within Ward Center’s complex coupled with the delivery of Kamehameha Schools’ new retail center at 4618 Kilauea Avenue in Kahala, helped to offset losses incurred when restaurants Baku and Yauatcha closed at International Market Place.