The Oahu retail market generated 34,830 square feet of new occupancy in the first quarter of 2018. With seven of the nine Oahu retail trade areas posting positive net absorption, Oahu’s vacancy rate fell from 6.82% to 6.19% since the end of 2017. The majority of the market’s occupancy gains occurred among the island’s recently built or redeveloped centers.
After gaining nearly 1.3 million square feet of net absorption during the past fifteen quarters, Oahu’s retail makret’s momentum slowed. The third quarter of 2018 posted a loss of 9,334 square feet of occupancy as vacancy rates remained relatively static at 6.08%. Despite the slight third quarter loss in occupancy, year-to-date net absorption remained a robust 213,585 square feet.
At mid-year 2018, commercial real estate investment sales volume established a new, six month record of $3.09 billion. This boost in sales volume was led by eight mega-transactions tallying at more than $100 million apiece. The largest transaction was the purchase of the $1.1 billion Grand Wailea Resort which was acquired by BRE Iconic Holdings (Blackstone Group LP) from GWR Wailea Property LLC (GIC – Government of Singapore) in April 2018. The deal resulted in a four-year, 42% gain for GIC, which had purchased the Grand Wailea Resort for $774 million in 2014.