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Although the economy is slowly recovering, the occupancy of premises in the main commercial centres of CABA exceeds 95% - Infobae
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Aunque la economía se recupera lentamente, la ocupación de locales en los principales focos comerciales de CABA supera el 95%
La geografía mercantil urbana muestra avenidas que recuperaron niveles de pre-pandemia. Rubros que lideran las solicitudes, tipos de inmuebles más demandados y valor de los alquileres en esos espacios
www.infobae.com
August 31, 2024
The urban commercial geography shows avenues that have recovered pre-pandemic levels. Sectors that lead the requests, types of properties most in demand and rental values in those spaces
By Jose Luis Cieri
Intersection of Corrientes and Pueyrredón Avenues, in the Balvanera neighborhood and close to the Once train station, with high occupancy of commercial premises
In most avenues of the city of Buenos Aires, even in times of recession, but with some improvements in the economy, especially in the real estate market , the occupancy rates of premises exceed 95% and have recovered to pre-pandemic levels.
Among the spaces that show a vacancy rate of just 2.2 to 3.2% are the commercial corridors of Avenida Corrientes between Ángel Gallardo and Pueyrredón, which show a clear improvement compared to the previous year.
According to LJ Ramos Brokers Inmobiliarios, in Avenida Corrientes and Ángel Gallardo (between Almagro and Villa Crespo), although the vacancy rate shows a significant improvement, it is nevertheless observed that the asking prices have not yet reached pre-pandemic levels. Currently, rental prices in that area range around USD 17.2 per square meter.
Marcos Ballario Rota , a research analyst for the real estate company that conducted the analysis, said that the main commercial sectors vary depending on the sector of Avenida Corrientes in question. “In the section between Ángel Gallardo and Bulnes, a more residential focus predominates, with food stores (supermarkets, greengrocers, kiosks, among others) standing out, followed by the financial sector, such as banks and payment systems,” he told Infobae .
The area is home to a variety of businesses, including computer and IT stores, hardware stores and bazaars. There is also a strong presence of food, health and beauty stores. This corridor is characterized by offering mostly small establishments, although in the case of food and gastronomy, larger fast food establishments predominate.
Ballario Rota added: “In this area, the fashion and textile sectors predominate, such as clothing and footwear stores, followed by gastronomy, including restaurants, bars and fast food options.”
On the other hand, the corridor that extends from Corrientes and Pueyrredón to Callao shows an even lower vacancy rate, of 2.2 percent.
Source: LJ Ramos Real Estate Brokers
According to Ballario Rota, “the asking price in this area averages USD 14.5 per square meter per month.”
This stretch is very busy due to its proximity to the Once station and is home to mainly fashion stores, including bridal boutiques, shoe stores and handbag stores. There is also a notable presence of second-brand clothing stores, offering a variety of options at affordable prices, and numerous stores specializing in telephones and communications.
The corridors of Avenida Corrientes and Ángel Gallardo and Avenida Corrientes and Pueyrredón are emblematic not only for their commercial activity but also for the influence of the environment. Good connectivity with public transport facilitates access and mobility in these areas.
“This is essential for the dynamic movement of buyers and retailers that characterize the areas, creating a robust commercial ecosystem,” added Ballario Rota.
Corrientes Avenue and proximity to Jerónimo Salguero, in the Almagro neighborhood, also with wide occupation of spaces
General scenario
In CABA, the average rent for commercial premises has been affected by a slowdown in prices.According to Karina Longo , research manager at CBRE Argentina, the current value is USD 28 per square meter, and has suffered a decrease of 20% compared to December of last year, when the price was USD 30 per m2. “This trend responds to the drop in consumption, which has had a diverse impact depending on the location and type of business that occupies the commercial spaces,” she said.
Commercial corridors in neighborhoods with a high concentration of service businesses have shown greater resilience to falling prices. Notable examples include areas such as Caballito (Rivadavia and Acoyte/José María Moreno avenues, and Cabildo avenue, between Colegiales, Belgrano and Núñez) where traditional clothing stores are being replaced by new service businesses.
"The latter registers prices below the average (estimated at USD 30 according to various sector reports), standing at USD 24 per square meter," Longo added.
Cafes and food businesses are among the sectors that drive demand and rentals of commercial properties
In terms of demand, food chains lead the need for commercial spaces in the city. “Despite the general drop in consumption, consumers continue to seek gastronomic experiences, which drives the opening of coffee shops (now called cafecitos like in Las Cañitas) and fast food establishments. On the contrary, the fashion sector suffered the biggest drop in demand for commercial properties,” added Longo.
What is required
According to the research manager of CBRE Argentina, entrepreneurs and investors operating in the commercial real estate market are currently mostly looking for small premises, less than 200 square meters. “These types of premises are rented more quickly, since they better fit the current needs of the market, with an increase in take away (buying food in one establishment to enjoy it elsewhere) and online sales,” she said.The most sought-after premises are those with double height or high ceilings and no columns, as they allow for optimising the space for online shopping and lockers. The low initial investment for the start-up is a key variable in decision-making. “Large commercial premises, over 200 square metres, are more difficult to rent under current market conditions and tend to remain vacant for longer. This trend was particularly noticeable during the first half of the year,” concluded Longo.
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