Hawaii Real Estate

Imagine having a home of your own, located in a place where the sun does not tire from shining all year long. You can do anything any time of the year, and you do not have to worry about buying yourself a set of wardrobe for the summer months and another set for the cold months.

Hawaii is found in an archipelago off the North Pacific Ocean end. Because of its location, this state has been the ultimate building block that makes up tropical dreams. From the fresh breeze to the beckoning ocean to the warm sand and sun, this place exudes a paradise-like environment. That is why it is not very surprising to find out that Hawaii is a place where the real estate business is blooming.

If you are interested in looking at and planning on a piece of Hawaiian real estate, it would be a wise move for you to get more information first about the whole way of life in that state. Since the whole state is made of islands, there are locations where there are much different activities from the rest of the state. By knowing about the different locales, you can know which part of Hawaii you want to have your fancy little tropical home.

The Internet holds a wide collection of information on Hawaii. With regard to companies who are into Hawaii real estate business, the easiest source of information would also be the World Wide Web. Most of these companies also provide people with assistance regarding the deals on acquiring a Hawaiian property. Most companies whose businesses are into Hawaiian real estate provide a list of all the properties available. They also provide information regarding the location of the real estate as well as its type.

Hawaii Commercial Real Estate Forecast

Retail sales: by watching the gross sales of retailers, you can predict if they'll be able to pay rent, and how the property as a whole will perform. In 4th quarter 2009, sales began to go up again, and that could be the saving factor for rental rates and occupancy rates in Hawaii.

Retailers expanding and contracting: The biggest surprise is that Luxury retailers, along with best sellers, discount retailers and apparel and department stores, showed an increase in sales. Stores such as Neiman Marcus and Nordstrom had about a 4.5% increase in sales.

Shopping Center statistics: We've been seeing a drop in tenant sales that increases as you get further away from the core of Honolulu, and interestingly enough, Landlord revenues have gone up slightly. We've also been seeing Landlord expenses go down as owners buckle down to get through the year.

Vacancy Rates: Compared to the West Coast, Hawaii is in good shape, but when we look at the neighbor islands, you see rates jump to as high as 11.53%. It is definitely a Tenant's market, as we've seen rental rates drop from $5 to $2-3 in a short period of time.

2010: Expect a slight increase in vacancy, we're predicting 4.5%, as well as a 5% increase in sales. Not quite up to 2008 sales yet, but we're getting close.

Expanding Retailers:

Slides 11 and 12 list Tenants who have opened in 2009, spent money, made the investment, and took the risk. These are very few and far between.

Ideas for Landlords:

The key is to create momentum, and increase advertising. Hire merchandising consultants because most Tenants are not capable of producing great storefronts. They could gain a lot from a professional consultant. Twitter campaigns are working for impulse daily specials, such as a restaurant Tweeting a daily special.