HONOLULU-Jones Lang LaSalle recently enhanced its presence in Hawaii by adding professional Wendell Brooks III to deepen and lead the firm's retail brokerage business. Brooks, who joins as a SVP, will lead the company's retail brokerage business in the islands, working closely with Hawaii retail market lead Kirk Horiuchi to assist landlord and retail clients. Brooks will be joined by James Greenwell and Robert Kelley, who will focus on retail leasing and sales. Additionally, Melissa Masicampo joins the firm as brokerage coordinator and Mark Ching joins as graphic designer and marketing specialist to support the growing retail team.
GlobeSt.com caught up with Brooks to chat about the retail climate in Hawaii, how tourism is driving the market, and what types of investment opportunities are there.
GlobeSt.com: What is the retail climate like in Hawaii?
Brooks: With the resurgence of the visitor market in the 50th State, skies are "clear and sunny" in paradise. Robust tourism numbers, both in spending dollars and actual human arrivals, have created a healthy environment for retail growth and expansion. Architects are busy drawing site plans, engineers are feverishly creating estimates and brokers are "pre-leasing" on all of the major islands. In fact, Q1 quarterly results show that rental rates rose 1.4% year over year. And, supply constraints will keep vacancy tight. Recent deliveries are grocery-centered: a 65,000-square-foot Safeway in Ewa Beach, a 40,000-square-foot Whole Foods center in Windward and a 35,000-square-foot Foodland in West Oahu.
GlobeSt.com: What's driving the growth?
Brooks: Tourism. Pure and simple. Hawaii is on track for a record breaking year in all categories in the visitor market. The more tourist, the more disposable dollars for the local population. In fact, according to the Hawaii Tourism Authority's annual 2012 Survey of Resident Sentiment on Tourism, public opinion remains overwhelming for visitor activity, with overall favorable support eclipsing 89% of respondents.
GlobeSt.com: What type of retailers like Hawaii?
Brooks: Everyone loves Hawaii; except perhaps the retailers that require very "high populations" such as Ikea. From Gucciand Louis to TJXCos.and Ross, and virtually everything in between, Hawaii enjoys some of the highest sales in many chains, nationwide. Cheesecake Factory, Safeway, Walmart, California Pizza Kitchen are just a few examples of retailers with some of the highest, if not the highest, grossing stores nationwide. Costco reportedly has the highest grossing store in the world right in Downtown Honolulu.
GlobeSt.com: What type of investment opportunities are there for owners and developers?
Brooks: As land and opportunity are limited by the geographic reality of an island chain, the "opportunities" are limited and often challenging for the "mainland" investor. Ninety percent of the all land is owned by either government or a major Trust, leaving only 10% for the investment community. Entitlements, zoning issues, construction costs, permitting, are challenging aspects of development in Hawaii. However, there have been some significant trades with sales totaling $742.8 million in the last 12 months, and $65.2 in Q1 2013—a 19% decrease over Q4 2012, according to JLL Retail analysis. One transaction of note was Lahaina Cannery Mall, purchased by Property Development Centers from Gus Gianulias, for $58.5 million. The 130,600-squre-foot property traded at $448 per square foot. For those who know how to navigate the local process, the rewards are many.
GlobeSt.com: What's the best advice you can give a retailer looking to break into the Hawaii market?
Brooks: Bite the bullet. Respect the culture. Be patient. Give generously to the community. Hire local talent. Be humble.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
