The growth of Bermuda's commercial property market has been slowed down by a fall in demand and a number of international companies sub-letting their premises in direct competition with new developments.

That is the view of former Premier and property developer Sir John Swan, who said that despite several new buildings going up across Hamilton over the past year, he understood that some of those projects were no longer going ahead, mainly as a result of the global economic downturn creating a smaller workforce and increased competition from existing office space.

But Sir John, whose company Seon Place Ltd. is currently constructing the 141 Front Street building in town, believes there will be numerous opportunities for buyers as the environment shifts from a landlord's to a tenant's market.

He pointed out that when he started his development there were a number of other projects in the offing, including Belvedere Place, The Power House in Par-La-Ville Road and the retail centre at Washington Mall III, but now construction of the building at the former Bermuda Bakery site was dependent on finding suitable tenants and he had heard other projects had been put on hold.

"I think we all saw that there was a need for space as the international business sector was growing and even though there was a sense the economy was going to go through a downturn," he said.

"As a result of the global economic downturn, two things happened — one was the need for more space has been reduced and number two, some international companies that had excess space, whether it was XL or AIG or others that ordinarily would not be allowed to be in the rental business, so the development industry has taken a double whammy.

"The Bermuda Bakery project is not going ahead (with the building) and, as I understand it, other projects are not going ahead either."

However, Sir John reckons his own project, which he is working on with his daughter and company vice-president Amanda Swan, and Washington Mall III are two developments definitely going ahead full steam because of the floor space in each building offering tenants a chance to consolidate their business under one roof as opposed to being based in several different locations.

"The quality of buildings that are being built today are based on building regulations and code requirements and tenants want to have a better environment in which to work for their employees and also people are a lot more green conscious these days," he said.

"People are either replacing their existing premises or looking to new properties in the market, with some of the older ones being upgraded.

"The market is now far more challenging and the amount of tenants is far scarcer and therefore the landlords will have to work a lot harder to capture the tenants and it might be to the detriment of someone else they are competing with.

"I think any new building coming on line now will have to have far greater features and attributes than if you were building them five years ago."

Sir John's project at 141 Front Street is on time and to budget, and is expected to be completed in a year's time, according to the property developer, who said a number of parties have shown an interest, but he was fully aware as a landlord that he has to meet the needs of his tenants, so had incorporated various attractive features into the design.

"Our building will be completed on time and, hopefully with the location offering fantastic views and being at the entrance to the city and all the other amenities that go with it, people will find it attractive."