Maui commercial
real estate improving

Maui's strong job market and visitor industry have boosted the island's office rental business and created a bullish outlook for the island's retail sector, according to a report released yesterday by Colliers Monroe Friedlander Inc.

Maui's rental office market has improved more than 40 percent in the past three years, with vacancy rates falling from a high of over 20 percent in 2001 to 11.9 percent in 2004. Rental rates have also gained ground in all of the submarkets with a 5 percent increase in Kahului to a 22 percent increase in Wailuku.

"The forecast remains positive for the near future," said Mike Hamasu, director of consulting and research at Colliers Monroe Friedlander.

Despite 6,156 square feet of vacancy, Maui's retail sector remains healthy, Hamasu said.

"The strengthening hospitality industry, the booming resort and residential home sales, and the growth in retail jobs all are boosting Maui's retail sales," he said.

Both South Maui and West Maui reported drops in retail vacancy rates with Kihei leading the way.

The average asking rental rates for these markets rose 3 percent to 4 percent over the past year.