Best Commercial Real Estate Lawyers in Hawaii

About Commercial Real Estate Law in Hawaii, United States

Commercial Real Estate law in Hawaii focuses on legal issues related to properties used for business purposes. This area of law governs the purchase, sale, lease, development, investment, and management of retail, office, industrial, and hospitality properties throughout the state. Hawaii's unique land use history, environmental regulations, and high property values make its commercial real estate market distinct from the mainland United States. Navigating commercial real estate transactions in Hawaii often involves additional considerations such as state leasehold land, local zoning laws, and complex permitting processes.

Why You May Need a Lawyer

Many situations in commercial real estate require the guidance and expertise of an attorney. Some common scenarios include:

• Drafting, reviewing, or negotiating purchase and sale agreements for commercial properties
• Assisting with commercial lease agreements for tenants or landlords
• Addressing zoning and land use issues when developing or modifying properties
• Conducting title searches and addressing encumbrances or disputes
• Facilitating financing and mortgage arrangements
• Handling disputes related to commercial properties, such as breach of contract, eviction, or construction defects
• Navigating permits, licensing, and regulatory approvals, especially in environmentally sensitive zones
• Guiding buyers or investors through unique aspects of Hawaii’s leasehold properties and native land rights
• Assisting with due diligence, tax considerations, and entity formation for commercial transactions

Local Laws Overview

Hawaii's commercial real estate market is shaped by several unique and important laws. Understanding these local nuances is crucial for anyone involved in a transaction:

• Land Ownership Structure: Unlike most states, a significant portion of land in Hawaii is held as leasehold rather than fee simple. Leasehold land is owned by an entity (often trusts, government agencies, or private landlords) and leased to individuals or businesses for long periods, typically 55 years or more.
• Zoning and Land Use: Each county in Hawaii maintains its own zoning regulations that determine permitted uses, building sizes, and other development requirements. Special attention should be given to historical preservation and environmental zones, such as coastal areas or agricultural land.
• Environmental Compliance: Hawaii enforces strict environmental regulations, particularly for properties near protected habitats, shorelines, or cultural sites. Compliance may require environmental impact statements or specific permitting processes.
• Native Hawaiian Land Rights: Buying or developing certain properties may involve addressing the rights and interests of Native Hawaiian groups. Unique state and federal protections may affect access and usage.
• Permitting and Licensing: Commercial projects must comply with complex layers of permits, including building, environmental, and water rights, often at both county and state levels.
• Commercial Leases: Hawaii law has specific rules regarding commercial lease terms, defaults, remedies, and disclosure requirements.

Frequently Asked Questions

What is the difference between fee simple and leasehold property in Hawaii?

Fee simple ownership means you own both the land and any structures on it, giving you more flexibility and control. Leasehold means you own the structures but lease the land itself from someone else, usually for a specified term. Leasehold arrangements are common in Hawaii but may affect property value and financing options.

Can foreigners buy commercial real estate in Hawaii?

Yes, non-residents and foreign nationals can purchase commercial real estate in Hawaii. However, they must comply with U.S. federal and state regulations, and certain restrictions may apply depending on the property's use or location.

How does zoning affect commercial property in Hawaii?

Zoning laws restrict how property can be used, impacting what type of business you can operate, building heights, density, signage, and other factors. Each county has its own regulations, so it is important to consult local zoning maps and ordinances.

What is required to obtain permits for commercial development in Hawaii?

Permit requirements vary by location and project type but generally include building permits, environmental clearances, and possibly special use permits. Working with a lawyer helps ensure all necessary documentation is submitted and compliance is maintained.

Are there special considerations for properties near the shoreline?

Yes, properties within the Special Management Area (SMA) or Conservation District near the shoreline are subject to stricter environmental regulations and permitting requirements, designed to protect Hawaii's coastal resources.

What are common issues in commercial lease agreements?

Some common issues include rent escalation clauses, maintenance and repair obligations, subleasing rights, renewal terms, and default or termination provisions. A lawyer can help ensure lease terms align with your interests and comply with Hawaii law.

Do I need a survey or title search before purchasing commercial property?

Yes, conducting a survey and title search is highly recommended. These steps verify property boundaries, ensure there are no encroachments, and check for existing liens, easements, or title defects.

What can I do if I have a dispute with a landlord or tenant?

Commercial lease disputes can often be resolved through negotiation or mediation, but may require legal action if unresolved. An attorney can help evaluate your case and represent your interests.

Are there tax implications for buying or selling commercial real estate in Hawaii?

Yes, Hawaii issues a general excise tax (GET) on rental income, as well as potential conveyance taxes during sales. Federal and state capital gains taxes may also apply. Consult a tax professional or attorney for guidance.

How do I start the commercial real estate purchase process?

Start by identifying your property requirements and engaging a commercial real estate agent or broker. Once you find a property, a lawyer can help negotiate contracts, conduct due diligence, and guide you through closing.

Additional Resources

Several organizations and government agencies provide support and guidance for commercial real estate matters in Hawaii:

• Hawaii Department of Commerce and Consumer Affairs (DCCA) - Regulates real estate licensing and consumer protection
• Hawaii Board of Realtors - Offers information on commercial listings and industry standards
• County Planning Departments (Honolulu, Maui, Kauai, Hawaii) - Manage zoning, land use, and permitting
• Hawaii State Bar Association - Provides lawyer referral services and legal resources
• U.S. Small Business Administration - Resources for financing and managing commercial real estate for small businesses
• Hawaii Department of Land and Natural Resources - Oversees conservation and use of state lands

Next Steps

If you are considering buying, selling, leasing, or developing commercial real estate in Hawaii, it is in your best interest to consult with a lawyer who specializes in this area. Here is how to get started:

• Gather all relevant documents, such as lease agreements, property descriptions, and correspondence
• Clearly outline your goals and any particular concerns or needs regarding the transaction
• Contact the Hawaii State Bar Association for a referral to a qualified commercial real estate attorney
• Schedule a consultation to discuss your case and receive advice tailored to your specific situation
• Follow your attorney's recommendations for additional due diligence, contract negotiations, or dispute resolution actions

Navigating commercial real estate in Hawaii can be complex, but with professional legal assistance, you can protect your interests and make informed decisions for your business or investment.