Posted on: Thursday, June 9, 2005

Store space gets tight on O'ahu

By Andrew Gomes
Advertiser Staff Writer

Retailers seeking store space on O'ahu are facing their tightest market in eight years, with limited options at higher rental rates, according to a new report.

The empty retail space on the island has fallen to 4.5 percent of total space, a decline from 5.8 percent at the end of last year and the lowest vacancy rate in eight years, local commercial real estate firm Colliers Monroe Friedlander said in a report.

Average asking rental rates rose to $2.59 a month per square foot, up from $2.35 at the end of last year.

Mike Hamasu, Colliers Monroe Friedlander research director, said the rising rents are being driven by less available space at prime shopping centers, and will likely continue even though more retail space is planned for construction because construction costs have risen 40 percent over the last two years.

Hamasu said in the report that 1.3 million square feet of new retail space development is being planned, much of it in West O'ahu where developer The MacNaughton Group is planning a regional mall for Kapolei.

Retail space leased this year through early June totaled 163,962 square feet, compared with 228,834 square feet in all of last year, Colliers said.

Most of the filled space was leased by Borders Books & Music at Pearlridge Center, and electronics stores CompUSA and Good Guys at Pearl Highlands.

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