In effort to raise necessary funds to renovate and update the state of Hawaii’s office buildings and commercial real estate some buildings could be sold. Below is a link to the article describing the idea.
http://www.staradvertiser.com/business/20110724_State_may_sell_buildings_then_pay_developers_rent.html
Renovating or replacing some state buildings that aren’t being maintained well because of constrained state finances could become a job for private developers under a new Hawaii law.
The law allows the state Department of Accounting and General Services to sell buildings under its ownership to developers with an agreement by which the developer pays for upgrades and the state pays to rent the improved facilities.
Category Archives: Leasing
8 Things you should know about a Ground Leased Commercial Property in Hawaii today
- You have to think into the future on these properties and understand the ramifications of the current terms of the contract. Don’t assume you can extend the lease.
- Look for low rents. Ground lease rents that are below market provide properties with higher cash flow for your portfolio.
- Consider depreciating the assets faster to match up with the lease term.
- Time tenant leases to rollover as potential ground rent increases come through in the master lease.
- Pass your ground rent increases to tenants. This needs to be put in the lease up front.
- Older ground leases are typically more flexible. The fee owner may also be more motivated to make changes like increase the rent and modernize the terms of the lease.
- If you are a ground lessor, consider buying the leasehold interest, and do not merge them.
- Run a title report to see which of any ground lease amendments are recorded.
Hawaii Real Estate Forecast – Part 2
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.
