In terms of investor appetite for retail product, grocery and drug-anchored centers appear to be the most attractive, along with portfolios or larger assets. National drug store chains are seemingly anxious to expand and grow their brands, and big-box retailers are also eager to expand, but are limited by the lack of supply of large sites. New luxury and lifestyle tenants also remain very active especially when exposed to the growing visitor markets.

We are seeing vacant development land for construction of retail product also be very active these last few years. With Hawaii being “under retailed” there appears to be no shortage of developers looking for sites.

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GlobeSt.com: How is tourism driving the retail demand in Hawaii?

Wendell Brooks, Hawaii retail brokerage lead for JLL: Tourism is the life blood of the islands. A strong visitor industry fuels job growth, economic confidence, residential growth, retail sales and a general sense of well- being amongst the residents. Waikiki, the hub of Hawaii's resort activity, has witnessed very strong hotel occupancy rates along with increases in the average daily rate. These factors have fueled retail development as well as hotel and condominium construction. No less than 15 towers are in various stages of construction, an unprecedented level of activity. Billions of dollars are being spent in virtually all categories of commercial real estate with retail and residential leading the way.

GlobeSt.com: How do you anticipate the retail real estate investment climate in Hawaii to change over in 2015? What about retailer sentiment towards expansion in the market?

Brooks: As long as Tourism remains strong, especially with the sharp increase of Chinese visitors with plenty of expendable income, then the economy will continue to sail along. There will continue to be a high level of interest in buying and expansion, and we don't see investment into retail product in Hawaii slowing down. The challenge is actually finding quality product to sell/buy. Most well anchored, well located shopping centers will generate interest from many sectors and all buyer classes. Certain types of retail investment product have generated more interest than others – we tend to see investors come to the islands wanting to make a splash with large, aggressive purchases. From REITS to pension funds, to private individuals and International corporations, buyers are coming from everywhere! We are seeing a whole new crop of investors looking at the Islands for investment.

GlobeSt.com: How is JLL helping retail real estate investors overcome the challenges in Hawaii?

Horiuchi: JLL is uniquely positioned to help investors with much more than just a real estate transaction. Most of our Hawaii team members go back several generations on the islands, offering a local perspective like no other. We find that “how” an investor or retailer enters the Hawaii Market is as important as the entry itself. All states including Hawaii have their own set of unique challenges including tax laws, cultural sensitivities, the entitlement process, government regulations, construction and development issues, and much more. Our deep understanding of these challenges and nuances allows us to provide guidance and recommendations on how to best proceed- and succeed- in the Hawaiian market.