Oʻahu's retail real estate market started this year with positive news. But a new report says the story of continued growth may not last.
The report by Colliers Hawaiʻi says the retail real estate market on Oʻahu was finally moving past the COVID-19 pandemic in the first quarter. The vacancy rate dropped below 5.5%.
That’s compared to nearly 6% a year ago and close to pre-pandemic levels. But Colliers says the modest recovery that Oʻahu's retail market saw at the start of this year is becoming increasingly fragile.
Colliers says retail sales last year through November declined more than 13% due to a fall in consumer confidence. Spending last year was near levels not seen since the early days of the pandemic.
It’s not just ongoing economic challenges like high construction costs, a tight labor market and wages that are impacting retail.
Two Colliers Hawaiʻi executives say a looming global recession just adds to all of that.
Jon-Eric Greene and Kelli Wilinski say in the report that tenants and landlords are watching for the impacts of shifting tourism numbers, President Trump's tariffs and changing consumer habits.
But Greene and Wilinski say that for retail tenants looking for space, it may mean they can finally find options in neighborhoods or shopping centers that have in the past been difficult to access.
