Honolulu Retail MarketView Q4 2021

Net Absorption Further Accelerates

‒Net absorption ended Q4 2021 at 92,236 sq. ft., the second consecutive quarter of positive demand. Oahu and Maui realized the strongest demand among all islands, while community/neighborhood centers outperformed among center types. 

 

Vacancy Goes Lower

‒Similarly propelled by Oahu and Maui, Hawaii’s vacancy rate compressed to 8.1%, after coming in at 9.5% in Q3.

 

Average Asking Rent Declines

While it may have helped spur leasing activity, the average retail asking rent fell to $4.56 NNN in Q4 2021, compared to $5.27 NNN in Q3. The emergence of the Omicron variant and uncertainty surrounding its trajectory could continue to limit rent increases in the near-term