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Two new reports measuring supply and demand for retail store space on Oahu agree that the market is in a healthy spot with retailers filling empty space, though the volume of leasing activity differed in the two assessments.
One report, by commercial real estate firm Colliers International, said retail space vacancies dropped from 4.1 percent at the end of last year to 3.7 percent in the third quarter of this year, as 54,590 square feet of empty store space was filled by tenants over the first nine months of the year.
Colliers said the amount of space filled in just the July-September period was a relatively slight 5,968 square feet.
The other report, by commercial real estate firm CBRE, said July-September leasing activity was stronger, with 33,425 square feet filled, though the vacancy rate at the end of the quarter was 4.6 percent, almost 1 percentage point higher than Colliers reported.
The difference is in part due to the coverage of the reports. Colliers tracks 15.7 million square feet of leasable retail space, and said 587,977 square feet was vacant. CBRE tracks 13.6 million square feet, and said 628,288 square feet was vacant. Both firms limit their coverage to Oahu retail properties with rental space of at least 20,000 square feet.
Similarly, average rental rates for available space are calculated differently by the two firms. Colliers reports low and high averages of $3.36 and $4.28, respectively, but excludes Waikiki and Ala Moana Center. CBRE’s low and high averages are $4.41 and $10.49. The rent from both firms is per square foot per month excluding building operating expenses, taxes and other fees.
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