Posted on: Monday, August 23, 2004

Retail vacancy rate falls to 6.4 percent

By Andrew Gomes
Advertiser Staff Writer

The vacancy rate for retail space statewide fell to 6.4 percent in the second quarter from 7.6 percent in the same period a year earlier, according to CB Richard Ellis Hawaii Inc.

The local real estate firm, which surveyed 75 properties larger than 50,000 square feet, said that despite the improvement, more retail space emptied than was filled during the first half of the year, representing a net vacancy increase of 72,813 square feet. But the company also said the vacancy rate is expected to continue declining. "The rising retail market is an indicator of Hawai'i's improving economy," said company senior research director Jeffrey Hall.

Resort retail centers were the biggest drag on the market, with a 17.6 percent vacancy rate. Regional malls were at 7 percent; strip centers, 9 percent; value centers, 5 percent; and community centers, 3.7 percent.

Hall said investors view the market as good and have spent $71 million acquiring retail property in the past 12 months. More than $400 million worth of retail construction and renovation projects also are ongoing or planned, he said.

Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.