are now seeing drastic retrenchment in their
real estate markets. Hawaii, on the other hand,
is not experiencing the same amount of retreat
in its retail market.
Lord believes that restrictions in land use,
which limit property expansion for developers, stopped Hawaii from experiencing over-development in its retail market. That lack of
over-development is paying dividends to the
state now.
“Hawaii is physically a small market,” Lord
said. “There was simply less development, less
growth. This same thing that insulated us from
growth also insulated us from the downturn.”
cOMPetitive nature
Meanwhile, office and residential landlords in
Hawaii are vigorously pursuing renewals, often
using incentives such as free or discounted rents
and enhanced tenant services, to tenants who
are looking to reduce budgets and overhead.
Also, the rising number of foreclosures is
forcing some lenders to seek help with pursuing
opportunities in managing properties instead of
selling them.
Both situations call for savvy property managers who can leverage properties for the maximum profit, said Steven Sofos, CPM, president
of Sofos Realty Co. in Honolulu. He believes
Hawaii’s economy will be down from 10 to 20
percent in 2009, while vacancies will increase
and delinquencies in loans will hurt cash flow
on the condominium market.
“Residential property management is already
competitive, and it just became even more com-
petitive,” said Sofos. “Property managers who can
help lenders squeeze profits out of these proper-
ties they are stuck with will find some golden
opportunities to thrive in this down market.”
pain of losing ATA airlines, which used Honolulu
as a focus destination, and Hawaii-based Aloha
airlines. Recently, Norwegian Cruise Line
America pulled two ships out of Hawaii.
WINDWARD
ESTATES, A
PROPERTY
MANAGED BY
HAWAIIANA
MANAGEMENT
COMPANY, AMO,
WAS NAMED IREM
HAWAII CHAPTER
2007 BUILDING OF
THE YEAR.
PHOTOGRAPHY
© HAWAIIANA
MANAGEMENT
COMPANY
tiMeshares & tOurisM
Tourism, Hawaii’s biggest industry, is bracing
for a big hit in 2009. Airfares are lower, hotels
are dropping prices, but tourists just aren’t
showing up.
