When selling commercial real estate in Hawaii, one of the most expensive assumptions a property owner can make is believing there is only one logical buyer.
The investor.
An investor typically analyzes the property through income, NOI, cap rate, lease risk and return on capital. But an owner-user—a business planning to occupy the property itself—may see an entirely different value proposition.
The right building might give that business something a spreadsheet cannot fully capture: a strategic location, long-term occupancy control, signage, parking, storage, specialized configuration or room for future expansion.
Does that mean an owner-user will automatically pay more? No.
It means the same Hawaii commercial property can be underwritten differently by two completely different buyer pools—and sophisticated positioning should consider both.
In this video, I discuss:
- Owner-user buyers vs. investment buyers
- How NOI and cap-rate analysis differ from strategic business value
- Why location, parking, signage and configuration can influence owner-user demand
- SBA 504 financing considerations for eligible owner-occupied businesses
- Current owner-occupancy requirements
- Honolulu zoning, permitted-use, parking and loading due diligence
- Why sellers should identify multiple potential buyer profiles before going to market
Important update: As of September 12, 2026, the SBA occupancy provisions discussed in this video remain current. SBA SOP 50 10 Version 8.1 is scheduled to take effect October 1, 2026, so financing eligibility should always be reconfirmed at the time of a transaction. SBA eligibility also includes current citizenship/residency requirements; international or foreign-national buyers should not assume SBA financing is available.
If you own commercial real estate in Hawaii, the question is not simply, “What cap-rate investor would buy this?”
Sometimes the better question is:
“What successful operating business would want to own this?”
For confidential Hawaii commercial real estate consultation:
Jason Wong (PB), MBA
President & Principal Broker
Island Dragonfly, LLC
jasonwong.us
islanddragonfly.com
General real estate commentary only—not legal, tax, zoning, lending or investment advice. Verify financing, zoning and transaction-specific requirements with the appropriate professionals.
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