“The trend to own versus rent began with big-box users such as Safeway, Foodland and Longs Drugs, amongst others, who opted to buy their own land and to build their own buildings,” Brooks Borror, managing partner of Honolulu-based Commercial Consultants Inc., which is marketing the sale of the property, told PBN. “Such occurred because of escalating shopping center rents and common area maintenance costs.”
Borror said that traditionally, retailers had to settle for a land parcel sizes that were too large or too small for their optimal building footprint.
“Typically, retailers would prefer being a part of an integrated mixed-use retail shopping center,” he said. “Sales volumes achieved in shopping centers are usually considerably higher than stand-alone operations.”
Borror said that numerous local, regional and national retailers have expressed an interest in buying smaller parcels that are “right-sized” for their use. Thus far, the company has signed letters of intent from a national fast-food restaurant chain, a national car rental company and a car-wash company for the smaller parcels. Another development possibility for the parcel could involve a hotel.
Nick Paulic, managing partner of Commercial Consultants, said that based upon the number of buyers in the initial round of marketing that there may be more than one phase of the project.