New Development Spurs Market Growth
Oahu’s retail market posted a gain of 123,553 square feet of second quarter net absorption. The April 2016 opening of Regal Cinemas at Kapolei Commons contributed 56,000 square feet of net absorption to this boost. Over the past quarter, vacancy rates fell from 4.61% to 4.23%.
“Despite concerns over Sports Authority’s closure and its impact on vacancy, development activity will boost occupancy growth by over 700,000 square feet by year-end 2016.”
–Kim F. Scoggins (B) CCIM, Vice President
Year-to-date net absorption rose to 250,830 square feet with much of this growth attributed to Ala Moana Center’s Ewa Wing development which will add 650,000 square feet of retail inventory to the market. Currently, roughly 150,000 square feet still remains vacant or under construction with anticipation that many of these spaces will be occupied by year-end 2016.