3. Honolulu
Honolulu has not gotten as much spotlight as some of the other cities on this list, but it’s definitely a contender. The city has the second lowest vacancy rate in the country, at 2.6 percent, and the third highest rents, at $34.57 per sq. ft. The retail investment sales market in Hawaii in general exploded over the past 12 months, with sales volume increasing 760 percent from mid-year 2013 to $732 million. Yet the amount of new retail space under construction in Honolulu remains relatively modest, at 323,203 sq. ft.