The fires in West Maui have left a track of devastation and pain. Beyond the loss of people and homes, another group that’s been affected are commercial property owners on Maui — who now face a series of legal and regulatory challenges.
This week, PBN spoke with attorney Nancy Zhao about the issues confronting Maui commercial property owners. Zhou is an associate in Greenberg Glusker’s Real Estate Group and a board director for the Maui County Bar Association.
She notes that while the fires caused the most damage to homes and businesses in Lāhainā, the corresponding decline in tourism has hurt retail stores, restaurants and hotels throughout Maui.
We could be seeing commercial properties change hands as the current owners struggle to make their mortgage payments without any revenue coming in.
Another wrinkle is that Maui already had a shortage of real property devoted to commercial use, so business owners who might want to restart their businesses outside of Lāhainā will have a difficult time finding a new home.
Zhao said commercial property and business owners in Lāhainā face big questions like Does it make sense to rebuild and can they afford to do so? Do they have insurance, and if so, does it cover all their fire losses? If they choose to rebuild, can they obtain the necessary materials and labor in a reasonable timeline? How long will it take to obtain building permits and county approvals?
Zhao told PBN that for some business owners, the answer may well be to incorporate in another state for a faster new beginning.
