Hawaii Commercial Real Estate Forecast

Retail sales: by watching the gross sales of retailers

, you can predict if theyll 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: Weve 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. Weve 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 Tenants market, as weve seen rental rates drop from $5 to $2-3 in a short period of time.

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

Subscribe Videos on Hawaii Real Estate Forecast here : www.youtube.com/watch?v=N5TH0V6rDEM

by: Mark Bratton

POST COMMENT

Getting A Real Estate Investing Course The Logic Behind Real Estate Loans For Investors Estate Administration as a Career Get Estate Agents Help When Buying Or Selling Property In Ingleby Barwick Should a Homeowner Keep Hoping for a Sale or Is It Time to Look For a Financial Plan Before It Is Too Late? Take Advantage On Wii Homebrew Paintball Vs Airsoft Work From Home Jobs Available Now Impressionism: Painting in the Style of Claude Monet Universal Designs By Topsider Homes Supports Interest Of The Aged Good Reasons to Choose Bean Bag Furniture for Your Interior Decoration Reasons You Must Have The Best Baby Furniture Home Security Systems You Can Watch from Work