Resort centers show most growth

By Deborah Adamson
Advertiser Staff Writer

Shoppers hit the stores at Ala Moana Center. A retail leasing survey showed a drop in vacancies statewide. Advertiser library photo

Last year, retailers filled 184,000 square feet of space, nearly the size of the Costco-anchored Hawaii Kai Towne Center or a little more than a third of Windward Mall, according to real-estate firm CB Richard Ellis Hawaii Inc.

Jeffrey Hall, senior research director at CB Richard Ellis Hawaii, said improved retail leasing is outpacing the national market, and is largely the result of initiatives by investors who bought six local retail centers last year for a combined $160 million.

The overall vacancy rate in the survey dropped from 7.2 percent at the end of 2002 to 5.9 percent at the end of last year. Resort centers showed the biggest improvement, reducing vacancy from 16.8 percent to 11.4 percent during the same period, CB Richard Ellis said.

By island, Kaua'i showed the greatest improvement, reducing vacancies from 13.4 percent to 8 percent. Big Island vacancies fell from 6.9 percent to 5 percent. O'ahu vacancies fell from 7.1 percent to 5.7 percent. Maui was the only market surveyed where the vacancy rate increased, rising from 6.2 percent at the end of 2002 to 6.6 percent at the end of last year.

CB Richard Ellis surveyed 75 properties totaling 14 million square feet, or about 55 percent of the market. Centers surveyed included regional malls, community centers, strip malls, resort retail and value centers.

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