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In the heart of Waikiki, there is a strip of historic land so valuable that if King Kalakaua returned today he wouldn't believe his eyes or his wallet.  He would marvel at the riches he would have earned on the land he had rented to retailers, but more amazing, he would be stunned at how tourists to these Hawaiian Islands can't seem to spend their money fast enough.  On the street bearing his name, the six short blocks on Kalakaua Avenue, is one of the hottest retail areas in the world today. Within this small paradise of prime retail real estate resides the heart and soul of Hawaii tourism -- the magnificent Royal Hawaiian Hotel, the crown jewel of the fabled Bishop Estate which opened in 1927, and operated by Sheraton Hotels. A majority of Hawaii's $9 billion in annual tourist expenditures is focused in Waikiki -- the base of Hawaii's tourism industry.  Retail sales in Waikiki are among the highest in the United States.
 
If you're a landlord or if you're one of the lucky retailers who manage to get a lease in this cash-cow location, it's only going to get better. The Royal Hawaiian Shopping Center , a 300,000 sq. ft., four-level, upscale center is getting a major face lift, starting this summer and will officially be completed in early 2007. The makeover will open up the center so visitors will be able to view the historic Royal Hawaiian Hotel and its lush gardens from the street.  The makeover will completely re-face the exteriors and interiors, giving it a softer, more island feel.  Major retailers not already in the Center are lining up to get choice space.

Across the street, Madison Marquette and Retail Strategies, are working together to develop and market the famous International Market Place (above) will build upon its rich history to bring new and exciting tropical experiences including specialty retail and signature restaurants that will total approximately 240,000 sq. ft. Much of the look that the land had in the days of Queen Emma will be recreated.  The Market Place should re-open in late 2007.
 
The City of Honolulu has invested millions in the entire Kalakaua shopping district by installing attractive, Hawaiian-themed landscaping and hardscape.  The new Duke Kahanamoku statue located at Kuhio Beach has become an attraction for tourists from all over the world.  
 
Bill Eddy, with 30 years of retail leasing and consulting experience in Hawaii and an island resident for 11 years, is a bit amazed about the plans for the makeover of Waikiki.  "There are so many first-class projects coming on stream within the next two years, it makes your head swim."  He refers to not only what is taking place at the Royal Hawaiian Center and International Market place but also to the recent planned redevelopment of the beautiful Waikiki 3 Theater that is being demolished to make way for a new, two-level retail and restaurant complex.
 
And there's more , Outrigger Hotels and Richard Gushman are developing Waikiki Beach Walk , a 7.9-acre, two-level, open-air restaurant and specialty retail center on Lewers Street that includes the renovation of five hotels and replacement of six other properties. Extensive landscaping will take the place of parking ramps and alleys....a vast improvement over the past, says Bill.
 
"The Japanese are back after 9/11," Bill said. "They have enormous appetite for luxury goods.  In fact, Japanese account for 99% of all sales at the Louis Vuitton store in Waikiki.  Coach has three locations in Waikiki alone.  And the Cheesecake Factory recently opened in the Royal Hawaiian Shopping Center and is breaking sales records.
 
Yes, King Kalakaua would probably be shocked at the glut of retail and tourists roaming over his once pristine beaches.  Then he would look in his wallet and perhaps a smile might come over him.  He's not around to look in his wallet these days, but the Waikiki landlords and retailers are.   
 
Aloha! 

Check out our new web site: We've launched an updated web site which now includes more information and previous issues of The EddyLine.  Take a look...refer a friend...even better, refer a future client.  Enjoy!

The Eddy Company updates. Ruby's Diner . Effective this month, we have closed our San Francisco office formerly headed by Steve Eddy. All inquiries about Northern California projects should be directed to our Newport Beach office.

The Eddy Company updates...Ruby's Diner is looking for new stores in Hawaii and West Coast.. Gelato Paradiso is opening a new store in late May across from Grauman's Chinese Theater on Hollywood Boulevard. Sanrio has plans to open 6-10 stores in 2005 ...and Just Cavalli's latest store in Sunset Plaza is doing extremely well.   The Closet expects to open 2-3 new stores in 2005 after a record in 2004.

The Eddy Company is one of America's leading specialty retail leasing consultancies. For information, contact Bill Eddy at our Newport Beach office 949-640-7475. Please visit our web site - theeddycompany.com or e-mail:   bill@theeddycompany.com .