Last year, as a wave of new insurance companies set up in Bermuda, the market for premium office space went from being oversupplied to facing more demand than it could handle.

It hasn't taken developers long to respond to the shortage: the Department of Planning is reviewing blueprints for least two new office buildings proposed for Hamilton. Separate developers submitted plans earlier this summer to demolish the buildings at 131 Front Street and 65 Court Street and build seven-storey office buildings in their places.

The application for the building on Front Street was for “in principle” permission, while the developers of the Court Street site are seeking final approval. The Corporation of Hamilton, which reviews all building proposals for the City, recommended both developments.

The building at 131 Front Street, named “The Barritt Building,” currently houses HWP's Appliance Centre and warehouse.

Jonathan Brewin, the president of HWP, said his company is not constructing the proposed building, although there were unconfirmed plans to sell it to a developer, and HWP is making preparations to move its operations from the site.

The planning application was made by Secure Development Company on behalf of Pembroke Marketing Ltd.

The building, designed by OBM, is seven storeys high and, if developed, will fill a long, narrow lot which connects Front Street and Reid Street. The plans include two basements, one completely below ground and the other above ground on Front Street but below ground on Reid Street. The upper basement will include 38 parking spaces for motor bikes.

The top two storeys will incorporate outdoor terraces facing the harbour, the top one capped by a dome.

OBM documents submitted to Planning claim that the building will be so technologically adaptable that it will be “the most sought-after prime office space in Bermuda”. The building will have water views from most of the floors.

The developers placed their first advertisement seeking tenants in yesterday's newspaper.

The contact listed in the advertisement, Allen Forrest of Rego Realtors, said the project was “merely a seed in someone's mind,” but added that the development proposal was “very firm.”

Mr. Forrest said several people phoned yesterday morning enquiring about the 46,000 square-foot building, of which 43,472 is usable office area. He said that the construction schedule would depend on how quickly the building is rented.

It shouldn't take long - according to realtors, demand for office space overlooking the water is especially high.

The developers intend to use the first floor on Front Street for a “very nice shop... in keeping with the rest of the building,” Mr. Forrest said. He suggested a coffee shop or an art gallery as suitable tenants.

On Court Street, developers plan to replace one Bermudian-style building with a much bigger one. The proposed seven-storey, 23,000, square-foot building, complete with shutters and a slate roof, will replace a single-storey, 1,600 square-foot cottage next to St. Andrew's Presbyterian Church on the corner of Church and Court Streets. Almost 14,000 square feet will be rentable.

The site is owned by Abbott Holding Company, of which MP Arthur Hodgson is a shareholder, although according to the project's architect, Charles Daniels, ownership of the company will soon change to change and Mr. Hodgson, who has been his primary contact so far, will no longer be as involved.

Mr. Daniels said that Abbott Holding's shareholders had been pursuing prospective tenants through their own contacts, and could use part of the building themselves. Construction is scheduled to begin early next year and would take at least two years to complete.

The building will incorporate two floors below street level. The developers intend to to use the top floor of the building for a restaurant.

“The hours of the restaurant will focus on lunch and evening meals for the many business executives working in the north of the City,” Mr. Daniels wrote in his cover letter to planning. “An upscale setting for African-Caribbean cuisine is being considered.”

The restaurant has been designed to seat 30 people indoors and 20 on the terrace. Planning approved the project seven years ago but, according to Mr. Daniels, the project could not be financed.

The projects are one of several in Hamilton. In February, Planning approved a 48,000 square foot office building for the corner of Church Street and Par-La-Ville Road.

And early last month, Capital G confirmed plans to extend its building between Reid Street and Church Street, adding 12,000 square feet of office space.

Although final planning permission is still pending, a spokeswoman for the company said it hopes to complete construction in six months. Construction is underway on a building the corner of King and Reid Streets and at Max Re's headquarters on Pitts Bay Road.

After the ACE and XL buildings were completed last summer, there was some concern that as they consolidated their physical operations, the companies would leave behind a lot of empty office space that could not be filled.

But most of the space they vacated was soon spoken for, with new insurance companies increasing demand for premium space.