Changes are in the works at some of your favorite places to shop. Some are moving and others are in lease negotiations, which could eventually force them to move.
So what’s driving all these changes?
Experts say it’s consumer demand. We’re all looking for something new, and landlords want to capitalize on that demand to make more money.
At the Pearl City Shopping Center, the landlord says Foodland will be moving before the end of the year. Next door, Don Quijote is in contract negotiations to extend the lease.
Commercial real estate experts say in general, landlords are always looking to add something new to attract more business.
“The properties are old and tired and it’s time to improve them. The landlords will invest a lot of money to improve the properties and they’re gonna collect more rent,” said Jamie Brown, president of Hawaii Commercial Real Estate.
With rail coming to that area in the years ahead, there’s also the potential boom that landlords are anticipating.
“The thought is there’s gonna be more people living in that area, there’s gonna be new developments of newer residential developments,” said Brown. “Along with that will come opportunities for more retailing and services and entertainment.”
In Kahala, the owner of Petland is also in lease negotiations with the landlord Kamehameha Schools, which also owns the up and coming Kuono Marketplace nearby.
That will feature a new Foodland Farms and a list of new retailers. Brown says consumers are driving that demand for something new.
“The shiny new restaurant, everyone runs out to it or there’s a new retailer everyone comes and checks it out. Us as consumers, even locals, we’re driving that demand for this new product,” said Brown.
He adds that bringing something new means that the landlord can increase the rent up to three or four times as much as they’re getting now.
“But it’s not like it all just goes to their pocket. Think of it, they need to redevelop and invest tens of millions of dollars into that site to build the buildings,” said Brown.
We reached out to Foodland and we have not heard back. So no word yet on where it plans to move and what’s taking its place in Pearl City.