Construction Industry Guide 2013 - (Page 7)
With a slowly but almost surely improving economy and growing optimism across the state, does this mean development also is moving forward? Are the impressive visitor expenditure numbers having a positive effect on areas other than resort/ residential? Is the onagain, off-again rail project actually impacting plans and progress in development areas such as commercial/ retail? Are we seeing any new or unexpected trends in development? Where are we headed in 2013?
Accentuating the Positive
“How many of you think the commercial/retail market is improving?” asked Mike Hamasu as he began a presentation by Colliers International at a recent general membership dinner meeting of the Building Industry Association (BIA-Hawaii). Several members of the audience, (including your editor), raised their hands. “You’re right,” said Hamasu, director of consulting and research for Colliers. “It’s really taking off,” added Kim Scroggins, vice president, retail and investment division for Colliers International. In an interesting detail on the growth of this powerful economic sector, they explained that in the most current local versus offshore investment transactions, 77.9 percent were locally generated, while just 22.1 percent came from offshore investors. However, they pointed out, in sales volume, 83.7 percent was offshore attributed and 16.3 percent local. Major
impacting factors here were the sale of the Sears property at Ala Moana Center to General Growth for $250 million and the Pearlridge Center transactions at $289 million. Other large transactions include Safeway Center at Kapahulu, $72 million; First Insurance Center, $70 million and the K-3 residential site, $15.5 million. Then there is the huge Iroquois Point transaction, $311 million; the estimated $500 million for the Island of Lanai; and the pending $300 million Hawaii Prince Hotels deal. Yes, there is a lot of money changing hands out there! And as Hamasu says, “There’s a lot of interest in commercial real estate.” In a summary of the investment picture, Hamasu and Scroggins Mike Hamasu report: • A low interest rate environment spurs activity with owners and investors. • Lenders seek borrowers. • Commercial real estate debt maturities surge—$320 billion in 2012 and $300 billion in 2013. • Foreign investment in U.S. real estate rises. • The Hawaii commercial real estate market stabilizes. • Tourism remains an economic engine. • Go west, young man! (More on this directive later in this report.) Hamasu and Scroggins emphasize that for growth in new development, retail is one of the most attractive sectors in the marketplace.
Cycles, Trends and revisits
Several years ago, after the pacesetting Hokua residential highrise was built, followed by Capitol Place in downtown Honolulu (both joint venture developments of The MacNaughton Group (TMG) and Kobayashi Group), and Keola Lai was completed (with A&B Properties as developer), the door was opened for a flurry of more high-rise towers, including the Watermark Waikiki (Watermark Development LLC); The Pinnacle Honolulu (Pinnacle LLC); the Moana Vista (KC Rainbow Development LLC); Allure Waikiki (Fifield Companies, a Chicago-based developer); Trump International Hotel and Tower and others. Not all of them were completed as planned. Moana Vista, for example, became stalled for almost a year before being acquired by San Diego developer OliverMcMillan and successfully reborn as Pacifica Honolulu. We were told, in interviews with developers and local economic gurus near the end of 2008, that it was good while it lasted, but by and large, the residential high-rise boom was over. “The market is saturated,” they said. “Overall, the demand for condos in Hawaii as elsewhere in the nation has tapered down due to more restrictive loans from banks,” said Fifield’s then vice president and principal, Ben Ortega. But look around. Here we are almost at the end of 2012 and residential high-rises are once again BIG development news. So what’s up with high-rise towers and what’s going up in the marketplace? “Yes,” affirmed Colliers’ Kim Scroggins when we asked this question. “There are quite a few high-rise towers in progress and planned right now. Many more
2013 Construction Industry Guide — Hawaii 7
Table of Contents for the Digital Edition of Construction Industry Guide 2013
TABLE of CONTENTS
WELCOME.
WHAT’S DEVELOPING
Developers Directory
AGENCIES.
Federal/Military
State of Hawaii
City & County of Honolulu
County of Hawaii
County of Maui
County of Kauai
CONTRACTORS A-Z
GENERAL CONTRACTORS
SPECIALTY CONTRACTORS.
ARCHITECTS
LANDSCAPE ARCHITECTS
ENGINEERS
CONSTRUCTION ASSOCIATIONS
UNIONS
CONSTRUCTION SERVICES
List of Advertisers
Construction Industry Guide 2013
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