Costco in Talks to Anchor 146-Acre DHHL Business Park in Hilo, East Hawaii

The Department of Hawaiian Home Lands is planning a business park on about 146 acres along Railroad Avenue in Hilo, and a DHHL staff member confirmed Costco is one of the companies the department has been in conversations with about serving as an anchor tenant, Yahoo reported on October 27, 2026. The park would fund infrastructure for a nearby homestead project.

Costco Talks and the Hilo Business Park Plan

The business park would sit across from the existing commercial center where Home Depot is located. Ann Mikkio, a consultant for DHHL with PBR Hawaii, presented a market study for the proposed park at an October 19 meeting of the Hawaiian Homes Commission.

"The business park will serve East Hawaii, and the majority of the population in those areas live between Puna and North Hilo," Mikkio said. She said 109,000 people live in that area, more than all of Kauai County and about two thirds of all of Maui County.

Mikkio told commissioners that DHHL has been having conversations with "some very large big box opportunities" and that the department hopes those will work, while also looking at a baseline scenario. Under either scenario, she said, half or more of all lots would be leased at the 0.5- to three-acre size. The park would also have lots for smaller businesses.

The only Costco on the island is currently in Kona. The proposed park is just down the road from the Panaewa residential development, which sits on approximately 334 acres along Elama Road. DHHL recently said it expects to award up to 200 additional leases next year for the site.

Costco's Warehouse Footprint

According to akta.pro company records, Costco operates 931 warehouses globally, including 639 in the US and 115 in Canada. The membership-only warehouse club retailer sells bulk groceries, general merchandise and Kirkland Signature private-label products to 82.9 million paid members. Costco reported $69.15 billion in Q3 FY2026 net sales, up 11.6% year-over-year from $61.96 billion.

Panaewa Infrastructure and Wastewater Plans

Kalani Fronda, administrator of DHHL's Land Development Division, presented an update on the Panaewa project at the October 19 meeting. He said the undeveloped parcel needs roads, electricity, water and sewage before residents can move in, which is anticipated in 2031.

Fronda said wastewater poses a challenge because of a lack of existing capacity. DHHL is exploring building its own wastewater treatment plant for the Panaewa development, managed in partnership with the county. "We build it to spec and then turn over the management to them," he said, describing the conversations as early.

DHHL Chair Kali Watson said revenue from the business park could help fund that infrastructure. "We got to generate revenue," he said, adding that the department needs to issue bonds backed by revenue from its commercial centers. He said existing Big Island commercial centers are financing a little over $100 million in bonds used to put in infrastructure, and that the department aims to shorten a waitlist of nearly 30,000 people.

What Comes Next for the Panaewa Project

DHHL expects to award up to 200 additional leases next year for the Panaewa site as planning moves forward. Residents are anticipated to move in in 2031, after roads, electricity, water and sewage are installed.