Kona Commercial Property Specialist

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.