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.
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 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, the Island 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 4 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. Class A cruise ship/duty-free retail locations are rare and transact at high value.
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 spaces in central George Town due to continued demand for office space throughout George Town and the wider Seven Mile Corridor. This includes smaller turn-key office suites with access to shared amenities, such as conference rooms, 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 to 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. Other buildings have been renovated to a high standard where viable.
Office space rental rates on a triple net basis, contingent upon condition (first vs second generation) range from US$55 to US$75 per square foot per annum (psf pa) in the Class A to A+ market sector with the highest rents at Camana Bay, to US$35-US$45 psf pa in the Class B+ to A- market sector, falling to US$20-US$30 psf pa in the Class B market. Common Area Maintenance charges range from US$15-US$20 psf pa in developments such as Cricket Square and Camana Bay, where infrastructure costs are higher to between US$12-US$14 psf pa in standalone office buildings in other locations. Retail rates vary from US$40 psf pa on Seven Mile Beach to the highs of Seafarers Way, Cardinall Avenue and Fort Street, where rates of US$80-US$130 psf pa are achievable.
The commercial office market in the Cayman Islands continues to grow. Camana Bay opened 60 Nexus Way, the Islands' first ten-storey commercial office building (200,000sq ft) in April 2023, which is already over 65% committed. Phase VII of Cricket Square, Pavilion East, is currently being built and is due for completion at the end of 2024. 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.
As we move further into a post-pandemic environment, Cayman continues to be the jurisdiction of choice. We are also fortunate to continue to see companies expand, refresh existing space and/or relocate within the Cayman Islands. More and more companies are rethinking the way their office premises serve the needs of their staff and clients and are seeking to create a reinvigorated work environment that entices team members back to a flexible, collaborative office space. In addition to the growth of existing firms, there are new industry verticals within medical and tech 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 to include the potential for new developments and possibly 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.