Real estate firm Coldwell Banker is reporting that the commercial real estate market in Bermuda is looking up, after going through a difficult period.
The firm stated recently that it had either rented or placed in contract close to 80,000 sq ft of office space in 2014.
Most of this space was in the City of Hamilton. The firm also added that transactions for several properties for sale have closed and others are poised for completion.
The firm went on to say that interest in the remaining inventory is “very encouraging as it demonstrates a revival of long-term confidence.”
According to the firm’s figures, interest in larger offices is growing, which is going against the trend in recent years when the bulk of interest was directed toward smaller spaces.
Graham Smith of Coldwell Banker said that the firm is excited about the growth of new companies on the island and that existing companies have been expanding in recent months. The issue of empty office space has been an invisible one for most people working in the city.
If the actual vacancy rates were posted outside commercial buildings in Hamilton, it might promote a greater awareness of this economic indicator and the need to explore policy changes to stimulate growth, explained Coldwell Banker’s President and CEO, Brian Madeiros.
Madeiros went on to say that much of the city’s office inventory is dated and needs to be refurbished.
If only half of the vacant office space was refurbished and fitted out for new tenants, it would inject more than $40 million in the economy.
The occupants of the newly fitted-out space could potentially spend more than $300,000 per week on lunches alone, he concluded.
