Alexander & Baldwin Inc. announced Wednesday that retail, restaurant and service businesses have tentatively committed to lease more than 80 percent of the space in the former Kailua Macy’s store it is converting into a shopping complex named Lau Hala Shops.

A&B began cutting up and renovating the space earlier this month after Macy’s closed its 59,000-square-foot store in March.

“We’re excited to start transforming the former Kailua Macy’s building into the Lau Hala Shops and bring new dining and retail options to Kailua,” Lance Parker, president of A&B’s real estate subsidiary, A&B Properties Inc., said in a statement.

Parker said the transformation of the former Macy’s store represents a first phase of a long-term improvement plan A&B intends for much of Kailua’s commercial core, which the company bought along with other real estate in 2013 from Kaneohe Ranch Co. and the Harold K.L. Castle Foundation for $373 million.

The improvement plan, A&B said, will be grounded in community input and includes replacing dated buildings, adding more shops and restaurants, creating more open spaces and improving the walkability of Kailua town.

Lau Hala Shops is designed as a two-story complex with 48,400 square feet of leasable area divided into 10 spaces ranging from 800 square feet to 20,000 square feet. A&B said it has received letters of intent to lease more than 80 percent of the space.

Construction is scheduled to be finished in late 2017. Initial tenants are expected to open in early 2018.