HAR § 18-237-16.5-06 — Allocation based upon fair rental value

(a) The Lessee, in addition to the size, quality and location of the real property or space, shall consider the following factors when an allocation under section 18-237-16.5-04 or section 18-237-16.5-05 is required and the allocation based upon the percentage of the real property or space subleased is not reasonable under the circumstances. (1) Factors for vacant land. (A) Current rents paid and asked for comparable vacant lands in the same area as of the date when the lease is executed; and (B) The written opinion of a person knowledgeable about rental values for vacant lands, including a real estate appraiser certified under chapter 466K, HRS, or real estate broker licensed under chapter 467, HRS, with a knowledge of rental values for vacant lands. (2) Factors for apartment, hotel, and similar residential property. (A) Number and size of the rooms planned to be leased, quality and condition of the building, existence of special services or facilities, and the influence of such amenities as a desirable view; (B) Current rents paid and asked for comparable apartment, hotel, or similar residential property in the same area as of the date when the lease is executed; and (C) The written opinion of a person knowledgeable about rental values for applicable apartment, hotel, or residential property, including a real estate appraiser certified under chapter 466K, HRS, or real estate broker properly licensed under chapter 467, HRS, with a knowledge of rental values for the applicable apartment, hotel, or residential property. (3) Factors for store, office, and other commercial property. (A) For a retail store, consider sales volume, existence of nearby competition, and the availability of public transportation and parking facilities; (B) Current rents paid and asked for comparable stores, offices, or other commercial properties in the same area as of the date when the lease is executed; and (C) The written opinion of a person knowledgeable about rental values for applicable store, office, and commercial property, including a real estate appraiser certified under chapter 466K, HRS, or real estate broker properly licensed under chapter 467, HRS, with a knowledge of rental values for the applicable store, office, and other commercial property. (4) Factors for mining, manufacturing, and other industrial property. (A) Gross and net area, ceiling height, physical condition of the real property, availability of parking, loading and other service areas, access to transportation facilities, and the labor market in the area; (B) Current rents paid and asked for comparable mining, manufacturing, and other commercial properties in the same area as of the date when the lease is executed; and (C) The written opinion of a person knowledgeable about rental values for applicable mining, manufacture, and other industrial properties, including a real estate appraiser certified under chapter 466K, HRS, or real estate broker licensed under chapter 467, HRS, with a knowledge of rental values for mining, manufacturing, and other industrial property. HRS §237-16.5 HRS §237-16.5