Two empty floors of office space in the heart of Hamilton that have remained unoccupied since they were built four years ago bear testament to the ongoing contraction of the Island’s economy.Construction of Washington Mall Phase III was well underway when the global recession struck in 2008. As Bermuda’s economy began to splutter there was no going back for the development.But the effect of the economic slowdown was all too clear when the final phase of the mall, together with multi-storey office space above, opened in the summer of 2010.Today, two expansive floors of office accommodation lie empty, as they have done since 2010. Had things gone to plan a North American bank would have moved in and occupied the 30,000 square feet of office space on the two levels.“We started the construction when office space was needed — before the recession. A lot of office building construction started during the boom,” said Paul Slaughter, general manager of Washington Properties (Bermuda).Now he doubts if any large company will come looking to rent such a big space. “We might subdivide it to create smaller office spaces,” he said. “We are only getting enquiries for smaller office space.”While Mr Slaughter believes it unlikely a major reinsurance or financial services firm will seek to move in, he does think new companies that need to have two or three key people on the Island for regulatory requirements might be interested in renting smaller office units.Major insurance/reinsurance firm Catlin occupies other office space in the development, while five penthouse apartments have also proven popular.However, the empty floors, together with further unoccupied office space in the older section of Washington Mall, are a financial drain for Washington Properties. The company must still pay land and property tax for the units, as well as the upkeep needed to maintain and service the empty office space, including air-conditioning to counter the effects of humidity.Things are more promising when it comes to the retail side of Washington Mall. Phase III was styled on modern North American shopping malls and has proven popular since opening its doors. While some retailers have come and gone they tend to be replaced fairly quickly by new outlets.“The retail side is holding its own and we still have interest for the smaller units. The retail is doing better than the office space,” said Mr Slaughter.In the 10 years leading up to the recession of the late 2000s every retail unit in the mall was occupied. While that is no longer the case, and Washington Properties has had to adjust its rental prices to stay competitive, this side of the company’s business remains robust.One large retail unit in Phase III has remained vacant since the development was completed, however Mr Slaughter says consideration is now being given to dividing that space into smaller units.The oldest sections of Washington Mall date back to 1972, and it is intended that some of these areas will eventually be refurbished and brought up to date.Mr Slaughter said the property’s owners were happy with the new section of the shopping mall, with its stylish design, open-fronted stores and the success of the Beluga Bar eatery on the lower level.In an innovative move to bring life to one otherwise empty space in the new section of the mall a temporary indoor garden was created earlier this year. The retail unit, which previously housed an iStore, was turned into an indoor garden by Sousa Landscaping in the run up to Valentine’s Day. The concept proved popular and the ‘Garden of Love’ raised funds for the Bermuda Heart Foundation. Mr Slaughter said: “It was highly successful during that period and we will do more events there this year.”The next such event is this Friday when the Chewstick Foundation will add its brand of verve to the open space by offering kite-making demonstrations, face and Easter egg painting and music from 10am until 4pm.