Warehouse Vacancy Dips to 2.7 Percent in 2013

According to a report issued by Colliers International, a commercial real estate firm, the percentage of warehouse vacancies dropped to 2.7 percent in 2013 from 3.8 percent in 2012. One of the biggest reason for this is that the state of Hawaii has begun to reclaim warehouse space at Sand Island and at the Honolulu Airport to expand the Honolulu Harbor and airport facilities.  As a result, tenants in these areas are forced to find space in privately owned warehouses and rents have begun rise moderately because of it.  The average monthly base rent rose to 99 cents per square foot, an increase of 3 cents per sq foot from the year prior. The report stated, "Tightened market conditions are fueling competition for limited warehouse space. The relocation of tenants to private-sector industrial properties boosted demand throughout the island for warehouse space."

Source: Honolulu Star Advertiser, 1-17-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Kahuku Residents Concerned Abut Proximity of Wind Turbines

Kahuku residents on the North Shore of Oahu expressed their concerns to representatives of Champlin Windpower LLC, who are proposing to put up an additional 15 wind turbines at the Na Pua Makani project.  These turbines would be adjacent to the 12 that were build in 2011 by First Wind LLC.  The nearest turbines will be about 2,100 feet from Kahuku's Mauka Village. Residents have asked that the turbines be moved further away from homes, schools and the community in general.  

Champlin Windpower hired Dr. Robert McCunney, a Harvard Medical School physician who specializes in occupational and environmental medicine to speak with concerned residents. McCunney stated that his research showed that the turbines were safe and did not pose any risk to the safety or welfare of any of the people living in Kahuku. Residents were a little skeptical about McCunney's claims and stated that they could hear the wind generated from the turbines.  While the residents appreciated the clean, green energy that was being produced by the turbines, they wanted to make sure that they were located further away from them, for peace of mind if nothing else.

Source: Honolulu Star Advertiser, 1-17-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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North Shore of Oahu to Get Enormous Surf

The National Weather Service is forecasting enormous surf for the North Shore of Oahu over the next few days, with wave reaching up to 35 feet (70 foot face).  Lifeguards have posted warnings and have warned spectators who have gathered to watch the professional surfers to stay a safe distance away from any shoreline.  City officials have also noted that there is a potential for waves to wash over the highways. For residents who have beachfront properties in that area, there is a concern that waves may cause additional erosion of their property.

Source: Honolulu Star Advertiser, 1-17-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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Waikiki Neighborhood Board Denies Approval for Second Ritz-Carlton Tower

In a 13 to 1 decision (with two abstentions), the Waikiki Neighborhood Board has voted to deny approval of the second Ritz-Carlton tower being proposed by developer PACREP LLC. Legally, the board's support is not actually needed for PACREP to proceed with their development, the community's decision may weigh heavily on the City Council which wold provide an exemption to allow the building to exceed existing height limitations.  The second tower would be built right next to the first tower on Kuhio Avenue and is scheduled to be 350 feet tall.  Residents are concerned that the two towers would create a continuous wall of buildings that violates Waikiki guidelines and would destroy an exhisting view channel.  Waikiki resident Mark Harpenau commented, "This is going too far. Enough is enough. Tower 1 should not be a precedent for building another wall."

Casey Federman, the Managing Director of PACREP, responded by stating, "As a result of discussions that we have had with (Waikiki community members) and the city, we've done what we can to make adjustments, specifically we've changed the project to a more mauka-makai design and we've increased the distance between the two buildings to about 75 feet.  We'll continue to work collaboratively with the city and our intent is to do the same with the community."  However, community members argue that these changes were not enough. Furthermore, there is criticism that PACREP did not disclose their plans to build a second tower while they were obtaining permitting to build the first tower.

Source: Honolulu Star Advertiser, 1-16-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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University of Hawaii Requesting $33.5 Million from State to Replenish Tuition Revenues

The University of Hawaii is requesting from the state of Hawaii a total of $33.5 million to help replenish tuition revenues that was spent to cover salary restorations and increases that were made in the latest faculty contract that was ratified in 2010.  If the state is willing to grant them this money, the university added that they would use $14 million of that money to debt service $212 million in revenue bonds to start to tackle the $487 million of repairs needed for deferred maintenance projects around their various campuses.  University officials have proposed that if the state could provide them with a large enough bond, they would be able to eliminate the $487 million of repairs over the next six years and would repay back the money over the next 30 years through tuition increases.  David Lassner, the Interim President, stated, "Our approach this year is to say, ‘Let's try something different. Let's come in and ask to see if the Legislature and the (Abercrombie) administration will support us taking responsibility for this backlog."

Not all of the lawmakers agree with the University of Hawaii's strategy.  Representative Scott Nishimoto, who is the vice chairman of the House Finance committee, commented that over the past five years the school has doubled its tuition scholarships amount to $40 million instead of using some or all of that money towards obtaining construction bonds.  Nishimoto stated "Part of my concern is that you've doubled the amount of tuition you guys are giving away, but you're also coming to us for more money. At what point do you cut that off or kind of taper that off?"

Lassner to responded to Nishimoto that the University of Hawaii has been increasing their tuition rates, but still need to make sure that needy students can afford tuition.  Lassner stated, "Everything can be a trade-off, and reducing financial aid for needy students, or any number of things, certainly could produce revenue."  Under the current plan, tuition will increase by a total of 35 percent over the next 5 years.

Source: Honolulu Star Advertiser, 1-16-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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City Bill Would Have Police Help Enforce Sidewalk Nuisance Law

City Councilman Ikaika Anderson has introduced Bill 3, which would allow members of the Honolulu police department to help enforce the sidewalk nuisance law that was passed last year.  Currently, the law states that only members of the Department of Facility Maintenance are allowed to "immediately and summarily remove" nuisance items on sidewalks.  Anderson stated, "What's happened is that by nightfall, sidewalk dwellers return knowing full well that the city does not have the resources to return to an area in a week or a week and a half. City sidewalks are for traversing. They are not for squatting, they are not for living, period."  Under Bill 3, police offers would be able to respond and remove objects on their own.

Opponents of the bill argue that the sidewalk nuisance law unfairly targets the disadvantaged. They suggest that instead of spending money and resources on enforcing the law, they should be used to fund programs that directly assist the homeless.

Source: Honolulu Star Advertiser, 1-15-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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Hawaiian Airlines to Create 'Ohana Airlines for Smaller Airports

Hawaiian Airlines has announced that they will be creating 'Ohana by Hawaiian, a subsidiary that will competed directly with Island Air and Mokulele Airlines with flights to the smaller airports on Molokai and Lanai.  'Ohana by Hawaiian will be operated by Empire Airlines, an Idaho-based company, and has just welcomed in its first 48 passenger ATR-42 turboprop airplane. Crews have begun their training and will have to demonstrate to the FAA that they are ready for daily operations before they are given official clearance to start service.  'Ohana initially plans to have a total of three ATR-42 planes and will provide daily service been Honolulu, Molokai and Lanai.

Source: Honolulu Star Advertiser, 1-14-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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www.myhawaiicondo.com
www.myhawaiidreamhome.com