Archive for the ‘Hawaii Retail Properties’ Category

Safeway and the drug stores continue aggressive purchase of property

August 25th, 2010 1 Comment

walgreens

Last week, Walgreens closed on the purchase of the existing Safeway store in the heart of Honolulu.  This is subsequent to Safeway purchasing a larger site two blocks away within the past 60 days.  Walgreens elected to partner with Etco[?] on the site and will sublease part of the site to them.
As outlined at the beginning of the year, the top half dozen retailers in the state of Hawaii are becoming the biggest buyers of real estate and the most active developers of sites within the state.  With a success record and sales topping their list of stores throughout the country, Hawaii is a very attractive market to these retailers.

Last week, Walgreens closed on the purchase of the existing Safeway store in the heart of Honolulu.  This is subsequent to Safeway purchasing a larger site two blocks away within the past 60 days.  Walgreens elected to partner with Petco on the site and will sublease part of the site to them.

As outlined at the beginning of the year, the top half dozen retailers in the state of Hawaii are becoming the biggest buyers of real estate and the most active developers of sites within the state.

With a success record and sales topping their list of stores throughout the country, Hawaii is a very attractive market to these retailers.

Click on the link below to view the original article in the Star Advertiser:

Walgreen buys Safeway land

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Posted in Articles, Development, Hawaii Economy, Hawaii Retail Properties, hawaii commercial real estate Tags: , ,

Hawaii Retail Property sells for a very ambitious price

May 6th, 2010 No Comments
Attached is an article regarding Safeway’s recent purchase of a new three acre site in the heart of Honolulu’s Commercial Real Estate Market post “Great Recession”.  This site formerly housed a Cadillac dealership, which has been closed for approximately the last year.  Safeway has an existing store very nearby that was not able to be enlarged, but does very high gross sales.  Safeway is paying a price very close to top of the market, even prices that have not been seen in two or three years.  At nearly $200 per square foot for the land, this will buoy land prices in the heart of Honolulu at least for the rest of this year.  Many of us had thought that land prices would start to drop, but this single transaction shows a very motivated buyer with a known history for strong sales reinvesting in the heart of Honolulu’s population.

http://www.kitv.com/money/22315133/detail.html

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Posted in Articles, Hawaii Retail Properties, Recent Investment Sales Tags: , , , , ,

Hawaii Real Estate Forecast – Part 2

April 28th, 2010 No Comments

In January, I presented a 2009 summary and 2010 forecast presentation on the Hawaii Retail Market for CCIM.  This video is the second of three parts of the presentation (the powerpoint slides used in the presentation are available or download here).

This video focuses on Shopping center vacancy, new tenants and sales ideas. Outlined below are the main points of the video:

Recent Vacancies:
For Circuit City, most of their vacated space has not been released. About two-thirds of their stores are still vacant, which means there are 45,000 SF concrete boxes that are sitting vacant.

For Hawaii, we’re keeping our eye on Blockbuster, as they occupy approximately 120,000 SF  here.  Should they decide to  pull out of the market, we’d be losing 20+ stores at about 5,000 SF a piece, many located in shopping centers.

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.

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Posted in Articles, Hawaii Economy, Hawaii Retail Properties, Hawaii Shopping Centers, Leasing, Video Tags: , , , , ,

Hawaii Retail Forecast – Part 1

February 22nd, 2010 No Comments

In January, I presented a 2009 summary and 2010 forecast presentation on the Hawaii Retail Market for CCIM.  This video is the first of three parts of the presentation (the powerpoint slides used in the presentation are available for download here).

Outlined below are the main points of the video:

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.

The next two videos will go over expanding and contracting retailers, retail investment properties in Hawaii, and proposed projects coming online in the next 10 years.

If you have any questions, or would like further information, please feel free to contact me, or leave a comment.

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Posted in Hawaii Economy, Hawaii Retail Properties, Video
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