Kona Commercial Property Specialist

March 22, 2009

New Kaiser Clinic coming to the north side of Kona

Filed under: Updates — Chuck @ 8:05 pm

It was announced on Friday Kaiser has purchased 9.9 acres of land facing Queen Ka‘ahumanu Highway between Kealekehe Parkway and Hina Lani St. on the north side of Kona town. Health care is rapidly becoming a major economic driver in America’s economy. Kaiser’s $11,3000,000 land commitment in our community is just one more example.

This bodes well for all of us. When the clinic is built, it will certainly save lives. Today just the action of acquiring the property sends a message that Kona is moving forward, with or without cruise ships, West Coast visitors, Japanese Tourists.

The U of H campus site is taking shape. Target will be opening soon to round out the Kona Commons. Kaloko Commercial Center has completed construction and is moving forward with sales.

To me 6% unemployment means 94% EMPLOYMENT. We have learned hard lessons about if it is to good to be true, it probably isn’t. We have also learned to be wiser shoppers and leave the credit card home. A budget, sticking to a budget and time will fix these mistakes. Every morning during this healing period, we need to wake up in the morning, look around us and see what others are doing today to make Kona a better place.

March 14, 2009

Stop Now

Filed under: Updates — Chuck @ 10:43 pm

Have you noticed how many newspapers have gone out of business recently? Their own Doom and Gloom editors and headline writers are doing themselves and their newspapers in. Pretty soon we will be able to start chatting, on the internet of course, about all the good things the American people and people all over the world for that matter are doing to clean up the mess we got ourselves into without the incessant negativity of the print media.

So I suggest we leave those remaining papers on the stands and may I suggest to fellow Realtor let’s ditch the newspaper print advertising. People read the front page before they get to the real estate section. Yesterday’s West Hawaii Today ran a front page banner “BANKRUPTCY” in about 180 point type and your 14 point ad is going to sell a home??? The article wasn’t even about a particular bankruptcy, it was about the possibility of bankruptcy as a last resort.

If we have 6.1% unemployment, does that suggest 93.9% of us are EMPLOYED?

What Positive Thought did you have today? Please Share!

A hui hou,

Chuck Clarke

Charles Clarke Realtor®
“Land to Build Your Business On”
Chuckclarke@chuckclarke.com
KalokoCommercialCenter.com

January 23, 2009

A solid investment

Filed under: Updates — Chuck @ 12:13 am

An argument fatal to the communist theory, is suggested by the fact, that a desire for property is one of the elements of our nature.  ~Herbert Spencer

No man’s life, liberty or property are safe while the legislature is in session.  ~Author Unknown

The Hawai‘i Legislature is in session and once again there are empty hotel rooms dotting every beach front resort in the state. Will lawmakers ever give more than lip service to the notion our hospitality fortunes are not within our control? Not as long as the next biggest industry in Hawaii is building hotel rooms, time shares, and second homes for those from a far.When there is general prosperity elsewhere, hospitality and building are easy incoming money sources for Hawai‘i. The work in these industries also matches the education, or lack there of,  our schools produce and parents allow. Unfortunately, on the downward slope of the business cycle, both industries decline together. When layoffs come, the people who work so hard in these industries have no where to go, skill wise.

Here in Kona, the dearth of visitors has been particularly painful for resort and visitor oriented retail businesses. Already many small enterprises have  moved on looking for greener pastures and there are for rent signs scattered about. In the business to business sector, the response and results have been less noticeable. Businesses in the money sector of our economy, mortgage brokers, for instance, have been shedding office space. Many other businesses, electricians, air conditioning, truck and auto repair for example are maintaining their space, and I am certain economizing in other areas.

As a result there has not been much warehouse space coming on the market in the Kaloko Light Industrial area around Costco and Home Depot. TSA Corporation has recently completed Phase III in Kaloko Industrial Park and has  named the area Kaloko Commercial Center to point out the new 1.2 acre lots are zoned for mixed use-commercial and light industrial.

Although ths may not be best of times for a developer to come to market, the opportunity may be there for forward thinking owners of solid businesses to own their own land and building. Certainly building costs have retracted from their high demand inflationary highs of two years ago.

The north side of Kona has been growing rapidly and there are secondary educational needs going unfulfilled and health care facilities are in short demand.

Although there are those who are running from Kona, for those with a plan and faith in the future, this may be the time to run to Kona.

December 17, 2008

Kaloko Commercial Center Fee Simple Lots -Ready to Build

Filed under: Updates — Chuck @ 9:15 am

On time and beyond expectations is the key to Hiram Rivera and his company’s (EM Rivera & Sons) continuing success. The developer TSA Corporation and Charles Clarke Realtor® wish to thank Hiram for the magnificent project and are pleased to announce the completion of construction of Phase III of Kaloko Light Industrial Park. Anyone buying and building in this new phase will know they are building on a firm foundation.

The zoning on this 3rd phase has been upgraded to Mixed Use-Commercial. Earlier phases were Light Industrial only. Kaloko Commercial Center as the new phase is called will support a whole list of commercial, office and retail uses as well as light industrial activities. Businesses in Kaloko already know this area and its mulitple road access, three miles from Kailua-Kona town and three miles from Keahole International Airport is a real customer convenience, especially to Kailua-Kona mauka, the Kohala Coast and all areas north.

Several real estate professional and appraisers familiar with the property often lament about the timing of the development becoming available for sale. I say not to worry. Yes it may have been easier for clients to find financing a year ago, but the economy was already showing signs of years of too fast property appreciation and construction materal costs (inflation), a situation not conducive to good business decisions.

There are firmly grounded companies prospering during this adjustment to our economy. For some it is a good time to stop leasing and buy a property  which will appreciate and add value to their business. As government steps up efforts to catch up with infrastructure needs in the community, there will be new opportunities for growth in the construction sector. The nearby population is will support neighborhood banks, a grocery store, medical practices and clinics, health facilities, restaurants.

What about the price of the lots? Are they inflated? Not really. More business uses are allowed. Many of the lots have great ocean views, conducive to office and retail space enhancement. Lots are ready to build on. Each lot surface has a compacted base of crushed rock sloped for drainage. The terraces are back from the property lines to facilitate rock wall construction.  Most of the lots are at least 1.2 acres in size. The lots are wider than typical commercial lots meaning more street exposure, easier parking area configuration, and more allowable building square footage. Generally lot prices on a square foot basis are below 2005-2006 “heyday” prices.

KalokoCommercialCenter.com has complete details, actually more than one may want to know, about the subdivision. The site is set up to provide as many sources as possible to aid in a prospective buyer’s due diligence. I invite you to take a look. It is quick and easy to register on the site.

First Hawaiian Bank financed the subdivision. Locally, Vicki Hasty and Harold Hughes in Kona, Chuck Erskine in Kamuela, and Howard Higashi in Hilo have a Special Financing Program for buyers in Kaloko Commercial Center. 

For small business owners, a new lot for your business in Kaloko may be the best present you can give to your family this year. 

January 24, 2008

Recession or timely lifestyle adjustment

Filed under: Updates — Chuck @ 10:29 pm

It is quite easy for a large sector of American households to stop purchasing non consumables for a while. Our homes and closets are brimming with unused or underutilized items. In fact it is the environmentally friendly thing to do.

Certainly there are factors beyond wanting to be environmentally friendly. Credit card companies are activating little known clauses to crank up interest rates on existing cards. At the same time consumers realize card charges have a higher proportion of fuel expenses than ever before. Many households feel or see the need to pay off high interest cards and cut discretionary spending on eating out, vacations jewelry, new furniture, and gadgets for a while. It is time to take stock, have a garage sale, cancel that mini-storage locker and enjoy life with what we already have and actually use. Americans are constantly encouraged to be gluttonous; $5 per gallon gas will make even more people rethink their spending priorities.

There is a whole generation of baby boomers who are beginning to reallocate their spending priorities from buying new things to getting rid of old things, spending more on travel and recreation and on health care.

Post baby boomer generations include many workers without a future for their present workplace knowledge. Unless they invest in more education, many will find themselves employed as lower paid or unpaid care givers, like it or not.

Even though the hospitality industry is taking a hit right now there are still thousands of jobs available for people with a hospitable attitude. Way too many Americans between 20 and 35 live an all about me life and have a very hard time seeing themselves providing enjoyment or even gracious civility to others.

Despite a penchant of the press to highlight the negative, it will be difficult to talk ourselves into a real recession; there is an ever increasing portion of the population whose paycheck comes from government employment or as a transfer payment recipient such as Social Security.

Beginning now and over the next few years, for a huge number of Americans, their concept of “high standard of living” will change to mean the ability to have the time and finances to care for themselves, their aging loved ones, and the environment.

September 22, 2007

A time for homework

Filed under: Updates — Chuck @ 11:56 am

Today’s, Kailua-Kona commercial leasing and land business opportunities require a little homework and perhaps a crystal ball. If you are thinking of creating or moving a business to Kona, ascertaining whether there is a demand for your product or service may be the easiest part of the process.

Kona has suffered from inadequate roads and streets for over a decade. Both the County of Hawaii and State Department of Transporation have projects in process or are about to let out contracts addressing infrastructure. The county also has a fairly ambitious plan to improve many connector roads. Traffic patterns will change. When is the question? Where should your business be located?

There has been unprecedented growth in North and South Kona and along the Kohala coast, particularly in high value homes. Affordable housing has been brushed aside, adding to low unemployment woes. The current County Council is hell-bent on making affordable housing nearly impossible with a plethora of new government mandates and regulations. Qualified buyers are here, (although a few leave every month because there are no homes available.) Affordable housing is a good business opportunity for an akamai developer.

There is increased business demand both in retail and B2B. Leasing prices are rising as are land prices. This is an area for homework and due diligence.
Some of the larger landowners, particularly trusts, are insisting on leases that can be very onerous on the backend. Buying commercial property to own and build on requires even more homework. There are hardly any lots available, therefore prices are dramatically up from just five years ago. Judging the value of a property is more of an exercise in determining anticipated return on investment rather than relying on comparable sales.

And one last tidbit for today. Many of my readers know I have been long associated with Kaloko Light Industrial Park. Although there has been no sales information available (or permitted by County Ordinance), many know a third phase of 32 lots is making its way through the various county departments. My e-mail list of those who are keeping close tab on the subdivision’s progress is quite long. I share with you, the make up of this list suggests a bullish, immediate and long term future for the Kona commercial real estate market.

July 11, 2007

Aloha

Filed under: Updates — Chuck @ 11:21 pm

My name is Chuck Clarke. I have been fixture in commercial real estate on the west side of the Big Island since 1988. It is exciting to have this new forum for sharing information, thoughts and ideas about commercial real estate and land development in Kona and surrounding communities. The strength of the community and its economy lies with the many small businesses and entrepreneurs adding new products, services and good jobs to the district.
The community has grown to the point it is more feasible than ever to create, build, manufacture, innovate and provide intellectual services within the community rather buying and importing from away. Product choice and services that were available only with a plane trip to Honolulu or the west coast are now in our back yard. Money that stays in the community helps everyone.
Since 2002, business activity in Kona has nearly doubled. The amount of land and rentable light industrial and commercial space has not. The result has been a flurry of renovations and businesses moving from small spaces to bigger spots and then needing to move again. This activity shows no sign of slowing down. Next time I will start reviewing the major changes in the commercial real estate already in the development pipeline.

July 2, 2007

Hello world!

Filed under: Updates — Chuck @ 4:49 pm

Aloha and welcome to my new blog, part of the Aloha Living Blog Network. I look forward to sharing with you both a professional and personal perspective on real estate in this area. Stay tuned!