Commercial property still a tight market

Rob Jamieson, Commercial
Property Specialist

Monday,  January 9, 2006

When a commercial property in Elizabethan Square had a for rent sign put on it recently, there was a ripple of excitement within the business community with the possibility that the commercial market might be easing up.

However, commercial property specialist Rob Jamieson of Tropical Real Estate said that property will probably not be on the market for long, because the market is still pretty tight. 

“The property in highest demand is the Class A property and what is available are so highly priced that no one is going to go for them,” said Mr Jamieson. 

“I expect more property to become available in the next 12 to 18 months when the office space in the Camana Bay development is completed.”

Mr Jamieson explained the Class A property is mostly leased by firms connected with the offshore financial sector who need to project a certain image to clients. There is a lot more property available in the Class B and Class C categories. 

This property meets most needs for other businesses that cater to the local or tourist market.

He explained that what differentiates a Class A from Class B and Class C property are amenities such as available parking, internet, back up generators and insulated windows. 

Pricing varies depending on location and the building condition, but generally a Class A property ranges from $40 to $50 per square foot.

A Class B property generally ranges from $25 to $40 with Class C property generally going for less than $25 per square foot. 

He said what is more critical for commercial businesses downtown is the overcrowded parking situation. 

“Finding parking is difficult even after Hurricane Ivan when things were a bit looser. People come to work at 7:30 or 8:00 am and park across the street and the car stays there all day. There are many people who need to go into the bank for just 10 or 15 minutes but there is no parking,” he said. 

Mr Jamieson explained that if parking meters were installed it would encourage more parking away from the downtown centre. This in turn would allow more short-term available parking for those people who are coming in and out for just a few minutes. It would bring in a nice chunk of revenue and encourage people to come in who normally avoid downtown. 

“If meters were installed that charged $1 for 30 minutes then Government could bring in a significant amount in revenue,” said Mr Jamieson. 

He explained that it probably would not bring in millions of dollars like many North American cities; it is feasible that it could bring in $100,000 or more in revenue and benefit the downtown area at the same time. 

shurna@caymannetnews.com

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