The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

CIBC FirstCaribbean International Bank (Bahamas) is potentially moving to downsize its presence on Bay Street, having leased a “very small space” on the Parliament Street corner.

David Morley, Morley Realty’s president, yesterday confirmed to Tribune Business that the BISX-listed bank had leased a 2,000-2,300 square foot space in the property that is owned by the Cayman-based Dart Group.

While unable to confirm whether CIBC FirstCaribbean was set to relocate its Bay Street branch from its existing, much larger premises, Mr Morley confirmed that the bank had, at times, mulled this during the lease discussions.

“I can confirm they are going to be tenants in the building right on the corner,” Mr Morley told Tribune Business of CIBC FirstCaribbean. “There is signage in the window to that effect.

“What they’re leasing is a very small space, probably about 2,000-2,300 square feet.”

Asked whether CIBC FirstCaribbean planned to downsize, and relocate, its existing Bay Street branch, based in the former Barclays building, to the new location, Mr Morley said he was uncertain.

But he added: “In our discussions with them, at times they were thinking of that, and at times they indicated otherwise.”

It would be surprising, though, for CIBC FirstCaribbean to have two branch locations serving the public in such close proximity as they would likely ‘cannibalise’ each other’s business.

Given that CIBC FirstCaribbean has just announced plans to terminate 66 jobs in the Bahamas by October 2015, as revealed by Tribune Business yesterday, the move to the Bay-Parliament Street corner would fit into downsizing/consolidation trends.

It is also possible that the switch will save the bank rental expenses, and provide customers with better access, given downtown Nassau’s long-standing parking problems.

Mr Morley said CIBC FirstCaribbean would become one of four ground floor tenants at the Dart Group-owned property.

Two stores, a sunglasses outlet and Tempo Paris, a retailer of Ralph Lauren, Lacoste and high-end clothing, are already open. The third, and final, retail tenant will be Caribbean Silver, a vendor of jewellery, clothing, leather bags and other luxury goods.

While 100 per cent of the ground floor space is now fully leased, Mr Morley said the Dart Group’s property was only 50 per cent occupied because all the upstairs office space remains vacant.

“The primary focus has been getting the ground floor leased,” he added. “We have about 5,000 to 6,000 square feet of office space available.

“We have a couple of people we’re in discussions with in terms of smaller spaces, which we can subdivide up. At this point in time all the office space is left, but we’re in discussions with a couple of tenants now.”

Mr Morley added that to incentivise potential office tenants, the Dart Group was “prepared to finance the build-out” of their spaces “to make it a bit easier in today’s economy”.

“The big question is who has the money to put up funds for leasehold improvements,” the well-known realtor said.

Mr Morley indicated that the Dart Group’s Bahamian real estate ambitions extended beyond its initial acquisition at the corner of Bay and Parliament Streets. It was bought several years ago from Phillip Hillier’s Parliament Properties.

“They’re always on the look. They spent a lot of money on the building,” Mr Morley told Tribune Business of the Dart Group. “At the end of the day, it’s something we can all be proud of.

“Hopefully, it might be the engine for renovating the rest of Bay Street. That’s what they [Dart] had hoped.”