Demand for commercial real estate in Jamaica is shifting toward warehouse and storage space, with the sector offering returns that are outpacing traditional retail developments.

Commercial developments are at times netting single-digit returns while warehouses — largely shell complexes — are offering double-digit returns, according to developer sources.

"The feedback that I got was that we're seeing great demand for some retail spaces and small office spaces. Larger spaces are taking a longer time to sell and rent, but there is a greater demand for warehouses and storage spaces at this time," said Gabrielle Gilpin-Hudson, president of the Realtors Association of Jamaica.