Bermuda's businesses and corporate professionals are waiting to see what will happen to the property market in the wake of the US economic crisis.

That is the view of Penny MacIntyre, commercial sales and leasing agent at Rego Realtors, who said that clients looking for new premises have raised concerns about whether developers have the financial backing for their new construction projects due to the fall-out from some of America's biggest financial institutions over the past two weeks.

Meanwhile she also stressed the importance of using a broker to liaise between the landlord and tenant.

Ms MacIntyre said some tenants had backed off from the idea of getting more expensive space or higher floor space because of the events which have hit Wall Street in recent weeks and are already having a knock-on effect on the rest of the world's economy.

"I will find tenants that are looking for space, particularly in new construction, to be more tentative," she said.

"A lot of the companies that are in the market looking at space, whether for future space planning or more near term space needs, are pulling back their purse strings.

"Either I see clients now looking at lower floors or less expensive space in other buildings or renegotiating their existing lease. Companies are hesitant because of the effects on the market in the US that will ripple into Bermuda."

Equally, Ms MacIntyre believes landlords of properties with existing clients will have to be more competitive on their rents and more creative by renovating, refurbishing and upgrading their facilities or providing free rent periods between when the lease is up and when they sign the next one.

"People whose leases are expiring can either renew their existing lease for more favourable rental terms or compare what it would cost to move to a better building," she said.

"A tenant that is considering a new location or better space has to answer to a board or shareholders to justify the increase in cost.

"Companies or businesses start looking at real estate as the first thing and they ask: 'What does it cost me?', 'Should I own or rent?', 'What is the market?' and 'How do I reduce my real estate cost?'.

"Individuals and small businesses are having a hard time finding small business space and single office space, more established businesses are looking at their rent and how they can achieve a better rental deal and how it ties into their future business strategy."

Ms MacIntyre said now that the market had become softer it was an opportunity for Bermuda's real estate market to adjust itself because it had become overinflated in the past and it is a more tenant-favourable market.

She highlighted the value of having a broker to deal with the landlord and tenant as someone who is aware of what is happening in the market on a daily basis, is accountable to presenting all the offers on the table and making recommendations, and works directly with both parties to manage the referral process and act as an intermediary.

"They can help form a team that can achieve the end game," she said.

"A broker can be more creative as to how things happen - there is also a structure to the deal that comes into play when you use a broker as opposed to going direct between a landlord or a tenant, particularly in the case of international business clients.

"Having a broker lets you stay focused on what you are good at and allows you to take care of your day-to-day business."