General Growth Properties Inc., the owner of the Ala Moana Shopping Center, had announced that they will be closing the Sears store on June 2, 2013, approximately six months earlier then previously estimated. General Growth plans to demolish the three-level 340,000 sq ft department store and will spend about 30 months redeveloping the Ewa (West) end of the mall. The redevelopment will double the amount of retail space and would add a new anchor tenant as well as several midsize and smaller retailers. General Growth plans to spend $572.4 million in this project and hopes to be completed during the forth quarter of 2015.
While the move caught Sears employees by surprise, real estate experts agreed with General Growth’s move. Mike Hamasu, the director of consulting and research for Colliers International, stated, “It makes total sense because they’re (General Growth) capitalizing on the improvement in the local economy, also the boom occurring amongst the tourism sector because those are your primary consumer markets. You have the upswing in the economy, you have the boom in tourism, favorable exchange rates, which all support additional retail spending. Sales per square foot for Sears is definitely below what they could accomplish by (demolishing) the space and bringing in newer tenants. They’re updating not only the facade, but also the type of retailers they’re attracting into the center.”
Source: Honolulu Star Advertiser, 2-20-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
