Business Report: Real estate of retail

Business Report: Real estate of retail

HONOLULU (HawaiiNewsNow) - This morning, reading the real estate of retail.

The new Colliers report on retail rents is way more interesting when broken down.

Colliers parses Oahu retail by five types.

Resort and Specialty covers stores in hotels or on hotel campuses. They have captive audiences and pay by far the highest rents. That works for jewelry and very high-end fashions, but others may struggle.

The 13 percent vacancy rate is the highest of the five tiers.

Regional refers to regional malls, the big covered ones, Ala Moana, Pearlridge and so on.

Rents can be high, and you commit to be open certain hours or pay a major penalty.

Regional mall vacancy is 9 percent and falling, and high-end rents are over $10 per square foot.

Neighborhood malls are smaller, usually anchored by a supermarket or a drug store.

Community malls can be larger, but still laid out in a strip mall style.

Rents are in the $4 per square foot range for both types on Oahu.

Colliers also looks at genuine strip malls, smaller, often older, and often more occupied because rents are sometimes lower, in Oahu's case below $4 per square foot.

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