BUSINESS BRIEFS
Bankruptcies fall in November
Advertiser Staff and News Services
Fewer people filed for bankruptcy in Hawai'i in November, partly because so many people rushed to file before more stringent federal rules took effect Oct. 17.
U.S. Bankruptcy Court records show that 14 people filed for bankruptcy in Hawai'i last month, compared with 215 in November 2004.
Some bankruptcy experts don't expect filings to return to more normal levels for a year or more. There were about 1,400 bankruptcy filings from Oct. 1 to Oct. 16, about half of the number of cases filed all of last year.
OFFICE SPACE OCCUPANCY UP
O'ahu office tenants filled 76,673 square feet of space during the third quarter to reduce vacancies to their lowest level since 1992, according to CB Richard Ellis Hawai'i.
Job and business growth fueled the office expansion, which for the first nine months of the year resulted in about 120,000 square feet of additional office space occupancy. At the end of September, 9.8 percent, or 1.1 million square feet, of O'ahu office space was vacant. CB Richard Ellis estimates that vacant office space will continue to decline by 25,000 square feet to 50,000 square feet per year, helping landlords ask higher rent, which on average rose 4 cents a square foot to $2.36 during the third quarter.
POST-KATRINA LOAN BREAK ENDS
For Hurricane Katrina victims, December brings a cruel cut-off: It marks the end of an informal 90-day grace period that many lenders offered to Hurricane Katrina victims that let them put their mortgage payments on hold.
Banks and lenders cannot forgive loans entirely without risking the stability of their institutions. Some homeowners will have to pay off debt for years, whether they rebuild or move away; others will be forced to declare bankruptcy.
Bankers across the region say they will try to show some flexibility, but they have obligations to stockholders and banking regulators. After Katrina, regulators recommended lenders give homeowners a grace period on payments. Most provided 90 days.
