Earlier this week the Maui news published a story discussing the issues facing commercial properties on Maui. We’d like to address that article and contrast some of the points made with the reality of the live-work units at Kai Ani Village.

The vacancy rate for retail, office and industrial space is estimated to have doubled to about 5 or 10 percent, depending on the type of retail center and the location, while the poor economy keeps typically free-spending tourists away, said Grant Howe, Commercial Properties of Maui LLC founder and managing general partner…Hit extra hard these days are out-of-the-way shopping centers that never performed that well in the first place, the experts said. There’s also added anxiety about a handful of retail centers that went ahead and opened in the midst of the downturn, with only a few tenants lined up, they said.

We should first note that a 5-10% vacancy rate is only disturbing given Maui’s recent past. That is a routine number on the mainland in ordinary times. It is also important to note that this data is an island-wide assessment and includes all qualities of locations from the industrial parts of Kahului and Wailuku to Lahina and Wailea. Kai Ani Village’s location at the corner of one of Kihei’s busiest intersections is difficult to beat with frontage and signage on South Kihei Road. In addition, the residential component of the live-work condominiums separates Kai Ani Village from a more ordinary commercial space.

[Ed] Bello and others said that Maui is in a unique situation when it comes to the commercial real estate market, in that there is a finite amount of space for development, which will eventually help landlords when the economy recovers. It is an island, Bello noted.

Some communities have only a few acres of undeveloped land zoned commercial, Bello said. Maui has become a relatively mature market, he said. The building boom days, with the exception of homes, appears to be over, he said.

These are critical points. Maui is unlikely to ever throw the floodgates for development open to create large amounts of new commercial projects. And whatever is allowed is unlikely to be permitted along major existing commercial corridors in Kihei. So the exceptional Kai Ani Village location, across the street from a supermarket and health care facilities and only short walks from restaurants and theaters and health clubs etc. makes it extremely unlikely that such a live-work offering can be replicated in South Maui.

[Rick Woodford] said the shopping centers near the resorts in South and West Maui tend to be more stable…Wailuku and parts of Kahului are tougher markets.

And Kai Ani Village sits directly in the stability sweet spot.

In short Kai Ani Village is an obvious exception to many of the concerns expressed in the article. Come and see Kai Ani Village and you too will be convinced.

Want a shorter commute?? How about upstairs to downstairs?

Live/work residences are becoming increasingly popular as more and more people start small businesses and look to save expenses.

Though the concept harkens back to days when the corner grocer lived in an apartment above the store, today?s condo hybrids allow professionals, entrepreneurs, artists and others to own a space that?s well-suited to serve both home and work needs.

Live/work residences, such as those at Kai Ani Village, offer modern, at-home work spaces specially designed to meet the needs of professionals and entrepreneurs.? In addition to providing a great street-front, business-building location, they also save the owners fuel and leased office space costs.

There?s little doubt that the live/work concept is growing.

In 2000, U.S. census found nearly 4.2 million people age 16 or older worked at home most days during the week, up from 3.4 million in 1990. ?That 23.5% increase over 10 years almost doubled the growth rate of the overall work force. ?The Census Bureau?s most recent estimate, made from community surveys conducted in 2003, raised the number of home-based workers to 4.5 million ? an increase of slightly more than 7% in only three years.

Live/work residences like those at Kai Ani Village offer prospective buyers a range of possible floor plans to help them visualize possible uses ranging from a contemporary office with reception area to a small retail shop to a service-based small business.

Kai Ani Village?s live/work units offer professionals, such as attorneys, accountants or writers, the opportunity to have offices with separate entrances on the street and their living quarters above.? Plus, the downstairs work space is easily adaptable and accessible from the street level and the garage, making it easy for residents, guests and customers to come and go.

Artists and photographers requiring studio space, salespeople and home-business owners who need a combination of work and living space, are all prime candidates for live/work residences.

One of the most common uses for a live/work space is an artist?s studio.? Artistic endeavors such as sculpture, painting and installations require large workspaces, but the artist may want to live close to the project.? A well-designed live/work space such as those in Kai Ani Village provide artists with both home amenities and the space necessary to create and store finished works securely.

In today?s economy, the number of people looking for new careers makes live/work spaces attractive options for those who may not have considered them before. ?A professional who once had an office, and has clients they still need to see, needs dedicated office space, not just a room in their home.? The hybrid units also eliminate the need to lease costly retail space for their business.

In addition, working in a vibrant neighborhood such as Kiehi, Maui, Hawaii gives business owners a new community with new clientele.? The close proximity to other small business owners also offers fresh ideas to grow a business.

But can young professionals, often cited as the likely target market for live-work condos, afford to purchase them? ?A study of affordability prepared by The Live/Work Institute, a nonprofit organization in Oakland, Calif., says yes.

An owner of a live/work unit saves money by not paying separate rents for living space and work space, as well as reducing transportation costs, according to the institute.

And with sustainable living becoming more in vogue, and with gas prices not expected to drop substantially, experts say live/work units will only grow in popularity because they combine personal living space and professional workspace in such a way that neither is compromised.