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Hawaii Island Market Report Q4 2020

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Hawaii Island Commercial Real Estate Sectors Hit by Pandemic

Economic Slowdown Widespread
As the global COVID-19 pandemic spread around the world, Hawaii felt its immediate impact. Virtually no employment sector was spared by the wrath of the pandemic as Hawaii Island’s economy suffered from the near shutdown of its travel sector and fell into a recession. 

Air passenger arrival counts, which had reached a record high of 1.78 million in 2019, dropped dramatically when the State of Hawaii instated travel quarantines and COVID-19 testing requirements. Between April and December 2020, the average monthly air passenger arrival count dropped to just 11,354 and by year-end 2020, total air passenger arrivals declined by an alarming 72.3%. As a result, Hawaii Island’s hotel occupancy rates fell to 23% from last year’s healthy 77% and the December average daily room rate declined from $265.65 in 2019 to $222.71 in 2020.

During the past year, Hawaii Island’s unemployment rate rose from 3.0% to 8.9%, equating to a loss of 9,100 jobs. Despite this decline in jobs, it is an improvement from the start of the pandemic in April 2020, when unemployment rates rose to 23.3%, a loss of 13,200 jobs. The hardest hit industry was the island’s accommodations sector, which lost 3,200 jobs for a 55% decline in positions since December 2019.


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Hawaii Island Market Report Q4 2020

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Mike Hamasu

Research & Consulting Director

Hawaii - Honolulu

Michael brings to Colliers Monroe Friedlander, Inc. over 25 years of marketing and marketing research experience. Michael has directed research efforts at commercial brokerages with a focus on providing information to assist in strategic decision making for real estate investors and brokerage clientele. This effort reported on nearly 600 million square feet of commercial/industrial properties in the San Francisco Bay Area.

Having been quoted in the Wall Street Journal, USA Today, Real Estate Forum and Commercial Property News as well as other regional publications, Michael has been recognized for his detailed analysis of the commercial real estate marketplace and has  become the recognized source for commercial real estate trend analysis and forecasts for Hawaii’s marketplace.

In addition to managing the primary and secondary research efforts in the collection of commercial office, retail and industrial market information and statistics, Michael established the company’s real estate consulting division. Utilizing market factors such as: vacancy rates, absorption, net effective rents, and sales comparables, this consulting unit is able to advise developers, investors, property owners, and tenants on current and projected market trends.

PROFESSIONAL EXPERIENCE
Whitney Cressman Limited — Commercial Real Estate Marketing Research Director
Directed brokerage, internal research efforts, and generated real estate consulting assignments at a busy boutique firm in San Francisco Bay area. Served as the principal liaison to press and media. Analyzed office, retail, and development site criteria for market demand and feasibility.

Cushman & Wakefield — Commercial Real Estate Research Services Manager
Oversaw the compilation of market analytics for 600 million square foot commercial and industrial markets throughout the San Francisco Bay area. Recognized nationally and regionally for innovative data management and analysis. Selected to serve on a national career development board for research services. Directed research staff of 12 in five Bay area markets.
Identified by brokers as a manager achieving service excellence.

CONSULTING ASSIGNMENTS
• Development Feasibility Analysis
• Market Demand and Absorption Report
• Broker Opinion of Value 
• Highest and Best Use Studies
• Real Estate Portfolio Analysis
• Strategic Positioning Study
• Market Rent and Vacancy Forecasts

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Debbie Parmley

Vice President | Hawaii

Hawaii - Big Island

I am the “boots on the ground” for Colliers International on the Big Island of Hawaii.  Working for the Master Developer of Waikoloa Beach Resort for 21 years has given me the understanding and commitment to make sure both Landlord’s and Tenant’s have a partnership for success relationship.  My current role as Vice President-Leasing Services for the Island of Hawaii, has me in Hilo, Waimea, Kona and the Kohala Coast and Waikoloa Village.  Whether I am working to make sure tenant mix of a center is the best it could be or making sure a tenant is choosing the best location for their business, we make retail magic happen. The optimum goal is for both landlords and tenants to maximize profits and success for both.  Marrying the two needs is an art that we strive to perfect deal after deal.  All of our partnerships are created with Aloha and attention to each party’s special interests.

My career has allowed me the absolute pleasure to participate in many exciting projects.  Prior to joining Colliers, I was a member of the development and management team for Queens’ MarketPlace (a 135,000 square foot first class destination shopping center on Hawaii’s Big Island which includes an adjoining 4,000 person outdoor amphi- theatre); Kings’ Shops (a 70,000 square foot retail shopping center); The Shops at Mauna Lani (a 75,000 square foot retail shopping center); and served in a leadership role for the Big Island Portfolio of Colliers Monroe Friedlander, overseeing and executing both management and leasing activity. My passion in commercial real estate was created in Waikoloa Beach Resort commercial real estate property management and continues today  in leasing and investment sales.  The depth of my resort retail expertise is a unique and valuable tool when working with landlords and tenants  within resort areas on the Big  Island.

The team we are a part of here on The Big Island is a true asset for property owners who want to lease their spaces and have a true professional  property management team.  Also, those who are looking to sell their property or buy new properties on the Big Island can count on the Colliers Big Island Team to make deals happen. Our attention to detail can yield potential buyers/sellers for the greatest possible returns.

 

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