The ultimate guide on finding commercial properties in Grand Cayman with an overview of renting office or retail space, typical leasing costs and insider tips on new developments.
Grand Cayman's commercial space rental market is one of the strongest in the region, with high demand for all classes of space traditionally ranging from 750sq ft offices for smaller occupiers up to 30,000sq ft for some of the 'Big Four' accountants.
Commercial Property Overview
The primary source of demand comes from the offshore financial sector, including law firms, accounting practices and insurance/reinsurance firms. From a retail market perspective, Grand Cayman caters to an array of retail, which targets stay-over and cruise tourism, as well as the local market. This includes food and beverage premises and traditional brick-and-mortar retail stores.
The market comprises of close to four million square feet of space in all classes, which breaks down to roughly 1.25 million square feet of Class-A office space, 1.75 million square feet of Class-B space and close to 300,000sq ft of retail. High exposure ground floor retail space in George Town, which is near the cruise ship terminal, is in short supply and commands higher rent.
Most properties in George Town would be classed as B+ or B- properties, except for Cricket Square and a few properties on the waterfront like Strathvale House, Whitehall House and Harbour Place. These Class-A properties located in George Town command rents of US$45-US$65 per sq ft inclusive of a Common Area Maintenance fee (CAM), which breaks back to US$50 per sq ft in rent with US$15 of CAM.
Average vacancy rates vary by class and location, from as low as 2%-3% for Class-A+ to A space, 5%-10% for Class-A- to B+ space and around 10% for Class-B and C space. Within these averages, there is a wide variety of vacancy rates. For example, some Class-B properties in central George Town have vacancies of between 10%-15%. This has been somewhat due to the expansion and relocation of larger corporate tenants from the typically older buildings in George Town centre to the master-planned community of Camana Bay or edge of Town development corridor of Elgin Avenue, such as Cricket Square. There is, however, an increased interest in Class-B+ and B renovated ‘turnkey’ spaces in central George Town due to difficulties and costs associated with fit-out construction in some of the newer buildings, as well as value engineering annual overheads. This includes smaller turnkey office suites with access to shared amenities, such as conference rooms, serviced kitchens and reception desks, at an all-inclusive price. This type of office space is attractive to small corporations and sole proprietorships who want to be in George Town with close proximity to all the additional amenities that George Town offers, such as Class-A banks, the courthouse, Government offices, and a mix of local restaurants and coffee shops. Several Class-B buildings in George Town have sold recently and are under full renovation, which brings the increased revitalisation needed for George Town to attract tenants and new businesses. These renovations will, in turn, decrease the vacancy rates for the Class-B office space as buildings are renovated to a higher standard.
Class-A to A+ space is predominantly now found in development-type locations such as Camana Bay and Cricket Square on Elgin Avenue and in parts of the harbour front where redevelopment has occurred and buildings have been traditionally managed to a higher standard. Other buildings have been renovated to a high standard where viable.
Office space rental rates vary depending on where they are and whether you are receiving a space in a shell and core condition or fully furnished (first vs second generation premises), and the general condition of the latter. For Class-A to A+ office space, which is ready to move into in developments like Camana Bay and Cricket Square, the range is US$60 to US$80 per square foot, per annum (psf pa) with an additional US$20 in CAM. For Class-A and A+ space that is in a shell and core condition which requires a fit-out, the cost ranges from US$50-US$60 plus US$20 for CAM. Rents in the Class-B+ to A- sector are usually US$35-US$50 psf pa, falling to US$20-US$30 psf pa in the Class-B- market.
CAM charges range from US$15-US$20 psf pa in developments such as Cricket Square and Camana Bay, where infrastructure costs are higher; and between US$12-US$14 psf pa in standalone office buildings in other locations. Retail rates vary from US$50-US$60 psf pa on the Seven Mile Beach corridor. Cardinall Avenue and Fort Street command rates closer to US$45-US$65 including CAM.
The commercial office market in the Cayman Islands continues to grow. Camana Bay opened 60 Nexus Way, the island’s first ten-storey commercial office building (200,000sq ft), which is already 80+% committed. Phase VII of Cricket Square, Pavilion East, is currently being built and is due for completion at the start of 2025. This offers 150,000sq feet of LEED Gold Class-A office space across seven floors. They have plans to then build a ten-storey office building called Pavilion West. Cricket Square now includes Maiden Place (formerly the MUFG building) in their development, which offers another 25,000sq ft of Class-A office space.
We are very fortunate that Cayman continues to be the jurisdiction of choice. We are seeing companies expand, refresh their existing space and relocate to, or within, the Cayman Islands. More and more companies are also rethinking the way their office premises serve the needs of their staff and clients, and they are seeking to create a reinvigorated work environment that is flexible and has a collaborative office space. In addition to the growth of existing firms, there are new industry verticals within medical, tech and reinsurance that have shifted their attention to the jurisdiction. Amenity-rich, Class-A developments will continue to expand alongside George Town, with the Government’s long-awaited plans for revitalisation, which may include new developments and a boutique hotel.
Commercial Office Spacekeyboard_arrow_right
The Grand Cayman commercial space rental market is one of the strongest in the Caribbean region, with high demand for all classes of space traditionally in the region of 75,000 sq ft to 125,000 sq ft per annum.
Commercial Real Estate Agentskeyboard_arrow_right
If you are planning to lease office space in Cayman, you should speak with a realtor who specialises in corporate rentals. Though many of the real estate companies in Cayman can help you with residential rentals and sales, only a few agents on-Island specialise in commercial properties.