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HAWAII RETAIL
According to Roger Lyons, senior vice president of retail services
for CB Richard Ellis Hawaii Inc., the dominant retail trend
in Honolulu and across the Aloha State is the self-development
of properties by the retail owner/user. Big box tenants like
Wal-Mart and The Home Depot are leading this charge. “The
big box players are very aggressive in their expansion in the
market,” says Lyons.
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Roger Lyons
Senior Vice President - Retail Services
CB Richard Ellis |
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The Home Depot, which recently opened a new store in Lihue (Kauai),
is constructing another unit in Kapolei (Oahu) and negotiating
for a seventh location in the state. Lyons says the most significant
development in the Hawaii retail market is Wal-Mart’s
urban Honolulu development on Keeaumoku Boulevard. The 10.5-acre
site, which is currently under construction, will contain a
two-level store with Wal-Mart occupying 150,000 square feet
on the ground floor and Sam’s Club filling out the space
upstairs.
New retail development in Hawaii is not concentrated in downtown
Honolulu as one might think but is positioned more selectively
in suburban submarkets across all of the islands. New retailers
include the restaurants Coldstone Creamery and Krispy Kreme
Doughnuts. The Cheesecake Factory recently signed a lease for
15,000 square feet in the Royal Hawaiian Shopping Center in
the Waikiki market. The store is scheduled for a December 2003
opening. Jackie Chan’s Grill will occupy 10,000 square
feet of space in Ala Moana Center in Honolulu, and American
Eagle Outfitters inked a deal for a 5,770-square-foot location
in Queen Kaahumanu Center in Kahului (Maui).
According to CB Richard Ellis, the total vacancy rate for the
state of Hawaii is 6.87 percent. Oahu, the island containing
57 percent of the state’s shopping centers, registered
a vacancy rate of just more than 7 percent. J.C. Penney’s
recent departure from the state was a major factor in that it
added 400,000 square feet of vacancy to the retail market.
Lyons points to the Waikiki-Honolulu submarket as the one to
watch for retail activity. As Hawaii’s primary tourist
focus with 31,000 hotel rooms and home to Kalakaua Avenue, the
Aloha State’s version of Madison Avenue, Waikiki-Honolulu
currently has an ample supply of available space and three major
development projects under consideration.
“This street-retail market has a host of designers, high-end
boutiques and restaurant users circling the market,” he
says. “[However,] like all markets nationwide, retailers
are cautious and making deals selectively.”
©2003 France Publications, Inc. Duplication
or reproduction of this article not permitted without authorization
from France Publications, Inc. For information on reprints of
this article contact Barbara
Sherer at (630) 554-6054.
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