As the year comes to an end, I wonder what 2021 will bring us. Here are three things that I could influence our local economy and real estate industry...
Will our new mayor overhaul the Department of Planning and Permitting? Like many people, I’m curious why the permitting process can be so tedious. Bill 7 was passed with much excitement in 2019 and I haven’t heard much about it since. It was projected that over 20,000 units could be built.
The goal of Bill 7 was to allow developers to build affordable rentals. However, there seems to be more red tape with the DPP. The people who suffer the most are those who need affordable rentals.
Also, let’s not forget monster homes. When will the DPP prevent these types of home from being built?
Tourism is our cash cow. During the thick of the pandemic, Waikiki was a ghost town. If people are not visiting to Hawaii, how will the state generate tax revenue? Unfortunately, experts predict Hawaii will have a $2 billion budget shortfall. That explains why state workers will be furloughed starting in 2021.
To make up for the shortfall, will property taxes increase? Should we tax REITs? Gov. Ige was not in favor of taxing REITs. However, if REITs were taxed, it could generate over $50 million a year. Changing
Many will agree Starbucks hurt the office market. Unfortunately, the pandemic could be the nail in the coffin. Since March, people are realizing that working from home can be efficient and effective. If employers are implementing permanent work from home policies, maybe office buildings can be repurposed for other things, like residential housing. The Residence at Bishop Place is an example.
Earlier this year, a property owned by Servco Pacific, Inc. was sold to Amazon. A place where cars are parked might turn into a distribution hub or data center.
About data centers. Cloud computing is here to stay. Maybe Hawaii can a destination for data centers. It can bring in a new wave of jobs. Plus, there are large parcels of land in Kapolei for sale.