What the Hawaiian Islands Can Teach Us About Commercial Real Estate

The Hawaiian Islands are a study in contrasts. On one hand, they are the embodiment of tranquility—waves lapping against volcanic rock, trade winds carrying the scent of plumeria. On the other, they are a vivid reminder of nature’s unpredictability—lava flows reshaping the land, hurricanes forging new paths, and the ever-present pull of erosion and renewal.

This dynamic environment offers an unexpected metaphor for the world of commercial real estate. Whether you’re managing a warehouse in Southern California or negotiating a lease in the Inland Empire, the lessons of Hawaii’s landscape and culture provide valuable insights into navigating this industry.

1.?Land Is Finite: Make It Count

Hawaii’s geography is the most obvious lesson: land is finite. With only so much coastline and volcanic rock to develop, property in Hawaii is a premium commodity. Similarly, industrial real estate in regions like the Inland Empire operates within finite borders. As available land diminishes, the value of strategic decisions—whether to build, buy, or lease—skyrockets. Understanding how to maximize the utility of limited resources is a skill that sets successful brokers, owners, and tenants apart.

2.?Be Prepared for Shifting Conditions

In Hawaii, weather can change in an instant. One moment you’re basking in sunshine, and the next you’re seeking shelter from a sudden downpour. The commercial real estate market mirrors this volatility. Shifting economic conditions, interest rate hikes, and unexpected global events can upend even the best-laid plans. Those who thrive are the ones who, like Hawaiian locals, keep a watchful eye on the horizon and prepare for the unexpected.

During the 2008 financial crisis, I witnessed this firsthand while representing a manufacturing facility in Anaheim. Just as a hurricane alters its course, a sudden credit crunch derailed a deal that had seemed certain. Remaining adaptable allowed us to eventually close a sale, albeit at a lower price, when the financial storm had subsided.

3.?Sustainability Matters

Hawaii’s deep-rooted cultural respect for the ‘aina—the land—teaches us the importance of stewardship. Overdevelopment without regard for environmental or community impact can lead to long-term challenges, both ecological and economic. In commercial real estate, this principle translates to thoughtful planning: designing buildings with sustainability in mind, considering the impact on surrounding communities, and balancing growth with preservation.

This isn’t just an ethical concern; it’s a market-driven one. Tenants are increasingly prioritizing eco-friendly spaces, and properties with sustainable features often command higher rents and stronger demand.

4.?Relationships Drive Resilience

Hawaii’s aloha spirit is built on a foundation of community and relationships. In real estate, relationships are just as vital. Deals are rarely transactional—they’re built on trust, communication, and mutual benefit. Like the ohana (family) concept in Hawaiian culture, real estate thrives when brokers, owners, and tenants collaborate, rather than compete unnecessarily.

When I’m working with a client in the Inland Empire, for instance, the success of the transaction often hinges on maintaining open dialogue. Whether I’m representing a tenant searching for a logistics hub or helping an owner market their property, the spirit of cooperation ensures smoother negotiations and enduring partnerships.

5.?Change Brings Opportunity

Hawaiian islands are born from volcanic activity—an inherently destructive force that simultaneously creates new land. This duality reminds us that change, even when disruptive, often brings opportunity. In real estate, market shifts can feel catastrophic, but they also present openings for those who are ready.

For example, when demand in one sector slows—say, big-box retail—it can pave the way for adaptive reuse projects, like converting empty stores into industrial warehouses or fulfillment centers. Just as lava reshapes the islands, change reshapes the industry, offering new possibilities for growth.

Closing Thought

The Hawaiian Islands remind us that even in the midst of uncertainty and constraints, there is beauty, opportunity, and resilience. By adopting the lessons of this unique landscape—maximizing limited resources, staying adaptable, embracing sustainability, fostering relationships, and recognizing the potential in change—commercial real estate practitioners can navigate their own dynamic terrain with a little more grace and aloha spirit.

Allen C. Buchanan, SIOR,?is a principal with Lee & Associates Commercial Real Estate Services in Orange. He can be reached at?[email protected]?or 714.564.7104. His website is?allencbuchanan.blogspot.com.

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