Commercial Lease Laws in Hawaii
Don't sign a lease in Hawaii until you understand the local statutes, tax implications, and common landlord traps.
Key Statutes & Considerations
Landlords almost always add the ~4.5% GET to your base rent. This is standard but adds to your occupancy cost.
Common Red Flags in Hawaii
Commercial real estate in Hawaii typically favors the landlord in standard lease drafts. Whether you are in Honolulu or elsewhere, you need to watch out for:
- Uncapped NNN Charges: Variable costs like property taxes and insurance can skyrocket.
- Broad Indemnification: Clauses that require you to pay for the landlord's negligence.
- Relocation Clauses: Rights for the landlord to move your business to a worse location.
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Frequently Asked Questions
Is a Triple Net (NNN) lease legal in Hawaii?
Yes, NNN leases are the industry standard for commercial retail and office space in Hawaii. They shift the burden of property taxes, insurance, and maintenance to the tenant.
Can I negotiate my commercial lease in Hawaii?
Absolutely. Unlike residential leases, commercial leases are presumed to be negotiated between equal parties. Never sign the first draft.