Office Space

Waterloo House: on the waters of Hamilton Harbour

A Tale of Two Offices

For landlords, it is the best of times, it is the worst of times

There is estimated to be a half million square feet of empty office space in Hamilton, and some say it’s a tenant’s market. But demand among top international companies for space in high-end buildings means landlords of impressive new properties situated on the waterfront in Hamilton, with even more impressive views, are still able to enjoy top rental returns.

Newest among these buildings is Point House, where rent for the most prestigious space is said to be in the region of $100 per square feet – the highest for office space on the island.

Previously, the headquarters of the Bank of Bermuda and, later, HSBC Bermuda, the building is a product of the 1960s that is being transformed for the twenty-first century. It was bought by the Green family, who in 2013 also built Waterloo House, another of the breed of prestigious new buildings in top demand from international companies looking to create the right image.

Outside of the airport, the rejuvenation of Point House is possibly the largest construction project in Bermuda. The building provides a total of 80,000 square feet. The ground floor

is intended for retail and leisure units. The uppers floors will be leased to office tenants, for which there will be a separate entrance. Underground parking will also be available, and some solar energy may also be introduced to cut electricity costs.

Point House, Waterloo House, and a few others such as The Waterfront Complex and Sir John’s Swan’s 141 Front Street, could be called “Outliers” – they command far higher rents than the majority of office buildings, around $70 to $100 per square foot.

As existing companies move into these “Outlier” buildings, they leave behind them superior office space in good, but slightly older buildings that landlords are naturally keen to keep fully occupied. So, for companies looking for offices, but where creating a five-star image isn’t so important, there is a fine choice of space available right now at what could be called “negotiable” rents.

Generally, outside of the “Outlier” buildings, you can expect to pay around $40 per square foot or less. There is usually a service charge per square foot to cover maintenance, that would usually be around $10, plus you’ll need to budget taxes at $4 to $7 per square foot and electricity at $6 to $8 per square foot.

Due to the competitive nature of the market, many landlords of older properties have invested to upgrade their buildings to keep them attractive to potential tenants. Landlords are also working to keep operating costs down by being more efficient with electricity usage: installing LED bulbs, putting in energy management, and other energyefficient systems.

If you’re new to the island and looking to set up a business, the good news is that companies great and small move to the Island every month, and it is something Bermuda handles with remarkable efficiency.

Everyone from attorneys to IT experts know exactly what the new business on the block wants, often before being asked.

Unlike a lot of palm-fringed spots, Bermuda really does work. You can always get what you want – if not exactly when you want it. This being the second most remote inhabited island in the world, things can take a little longer getting here and cost a bit more when they finally appear.

Mark Twain, a frequent visitor to the island, called this the “biggest little place in the world.” Although the population of the “entire” country is barely 62,000, the services and facilities are that of a much bigger centre.

The banks are Bermuda-based with perhaps unfamiliar names – with the exception of HSBC – but they are among the most secure and savvy in the world, offshore or on. The same applies to the law firms, and the “big four” public accounting firms are here in force. In fact, Bermuda produces more lawyers, accountants, and bankers per capita than anywhere else.

If you’re not quite ready to set up your own dedicated offices, the Island also has shared office environments – an ideal starting point for businesses looking for a “touch down centre” in the city. They can provide fully equipped on-demand shared office and meeting space, and you can even host lunches or receptions to launch a product or service. Plus, you get to collaborate with like-minded business people.

As for buying and/or building your own office, this option is extremely complex and expensive and only worth contemplating if you’re sure you’ll be in Bermuda for the long haul.

We strongly advise the use of commercial real estate professionals and lawyers in your office negotiations.

All in all, doing business in Bermuda is not much different from working in any other major business centre, except perhaps that it’s much more pleasant here.

Point House: How it will look once renovation is complete

THE BEST ADDRESS

Preferred business areas are all in Hamilton FRONT STREET with views across the Harbour REID STREET and environs, close to all the action PAR-LA-VILLE ROAD and surrounding areas, between the city centre and the insurance giants CHUBB and AXA XL. PITTS BAY ROAD. The Waterfront Complex