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Local: how much does it cost to rent in Palermo Soho and Alvear Avenue and which is the most expensive area - La Nacion Propiedades
Source:
www.lanacion.com.ar
August 27, 2024
LA NACION had exclusive access to a report that reveals why the commercial premises market is resisting the onslaught of the economic crisis; the prices in each area
By Carla Quiroga
A perfect X-ray of the commercial premises market in CABA and its areas Alejandro Guyot
The macroeconomic situation challenges people's pockets, but the commercial premises market is dealing with the onslaught of the economy, the advance of e-commerce and the fall in purchasing power. "Despite the economic difficulties that have affected consumption, the demand for this type of space located in key areas remains strong ," says Santiago Winokur, a broker in the retail area of Newmark, the corporate real estate services company that exclusively shared with LA NACION the survey that reflects what happened in the premises market in the first six months of the year. The report that analyzed 1,608 premises in the main corridors gave a perfect x-ray of the behavior of supply and demand.
The first fact is that, with a vacancy rate of 3.6%, there are clear signs of improvement. “ The market is recovering progressively , driven by growing demand, especially in areas where the quality of the premises offered has increased,” analyzes Carolina Wundes, manager of research & data analytics at Newmark. In other words, not just anything is rented out anywhere. The specialist clarifies that the locations and quality of the properties “weigh in” when making decisions. Although this year is a period of testing for Argentina, with inflation continuing to be the unwanted protagonist of the economy, premises in high-traffic areas , such as Palermo Soho and the downtown area, are a magnet for merchants and entrepreneurs .
“This trend indicates that, although the economy is going through difficult times, strategic areas continue to offer a refuge for those looking for ways to achieve greater presence and profitability,” says Winokur. In this sense, the Newmark report shows that the combination of “high flow of people, visible and accessible locations” is a winning formula in this context.
Regarding prices, the average rental value of a premises located in the city of Buenos Aires is US$23.2/m² per month - at the official exchange rate. “There was a decrease compared to previous semesters that is related to the characteristics of the availability of premises, many of which are adapted to the current demands of the market, which requires higher-category spaces ,” explains Winokur and shares the ranking of the turnover rate by corridors: the pole with the most movement is Santa Fe -between Coronel Diaz and Scalabrini Ortiz- 4.7%, then Cabildo Avenue 3.5%, Florida 3.3%, Santa Fe -between Callao and Pueyrredón- 2.2%, Palermo Soho 2%, Caballito and Alvear Avenue with 1.9% and finally, Rivadavia Avenue in Flores with 1.6%.
The commercial axis of Coronel Díaz and Santa Fe stores Alejandro Guyot
When analyzing which sectors drive demand, the survey indicated that fashion and textiles occupy 45% of the spaces in the main commercial corridors . This sector is especially strong in areas such as Avenida Alvear, where it represents 78% of the stores of luxury brands. “In fact, unlike other hubs, 48% of the supply is international brands,” Wundes explains.
Palermo Soho is another area where clothing is also predominant , but in this case, together with gastronomy. “We analysed the streets of Armenia, Gurruchaga, El Salvador and Honduras, where out of a total of 151 stores, 56% are fashion and textile stores and 26% are gastronomy stores, in addition 27% are chains and 73% are independent businesses, and more than 90% are national companies ,” says Winokur.
But if we analyse the market in general, gastronomy occupies 13% of the total number of establishments in the city and is essential for its power to complement the commercial offer and attract a diverse public. On Santa Fe Avenue, between Callao and Pueyrredón, the home and bazaar sector stands out with 17% of the establishments , showing a preference in that area for products for the home and decoration.
In this context, the research data also provides key figures for those looking at opportunities to buy or rent commercial space.
Another trend of this time is strategic alliances with banks, which also partly explain the resilience of the retail market. “ They are a vital tool to sustain trade in the midst of economic adversity . Financing platforms that offer more flexible payment options help mitigate the impact of inflation on their pockets,” says Winokur.
Physical spaces in times of digital commerce allow for greater proximity to the customerAlejandro Guyot
For retailers looking for premises to rent, accessible lines of credit make it possible to “build” more attractive spaces for shopping and even expand their points of sale. “ Innovation and creativity are essential to offer unique and personalized shopping experiences ,” Wundes explains, anticipating that we are experiencing the beginning of a long-term transformation in the interaction between businesses and consumers.
For example, in recent years, Banco Galicia witnessed how digitalization changed the way customers interact with the company and identified that many customers still value direct contact with their advisors. “ We increased investment in the branch network with a strategic vision . To achieve this, the organization integrated the areas of Retail Banking, Planning and Infrastructure, and Real Estate,” says Nicolás de Mestico, manager of real estate and construction at the bank, adding that the bank works on acquiring properties instead of renting them.
“ This allows the bank to ensure long-term stability and the flexibility to adapt its operations to market needs . Investments in new branches have been designed as strategic hubs, equipped with advanced technology and acoustic materials,” adds de Mestico, clarifying that the commitment goes beyond infrastructure. “We are working to reduce the impact on the carbon footprint by reducing consumption through efficiency and incorporating renewable energy as a 100% source for operations , with the goal of reaching 90 by the end of the year.”
Looking ahead to the second half of the year, the report identifies specific trends.
Ultimately, Argentina is redefining the rules of the game for retail . The drop in sales is putting flexibility to the test and inciting creativity and co-creation between different industries. “This dynamic shows how, in times of crisis, entrepreneurs not only survive, but thrive and overcome the complexities of today's market,” Winokur concludes.
www.buysellba.com
Source:
Locales: cuánto cuesta alquilar en Palermo Soho y la avenida Alvear y cuál es la zona más cara
LA NACION accedió a un informe en forma exclusiva que revela por qué el mercado de locales comerciales resiste los embates de la crisis económica; los precios de cada zona
www.lanacion.com.ar
August 27, 2024
LA NACION had exclusive access to a report that reveals why the commercial premises market is resisting the onslaught of the economic crisis; the prices in each area
By Carla Quiroga
A perfect X-ray of the commercial premises market in CABA and its areas Alejandro Guyot
The macroeconomic situation challenges people's pockets, but the commercial premises market is dealing with the onslaught of the economy, the advance of e-commerce and the fall in purchasing power. "Despite the economic difficulties that have affected consumption, the demand for this type of space located in key areas remains strong ," says Santiago Winokur, a broker in the retail area of Newmark, the corporate real estate services company that exclusively shared with LA NACION the survey that reflects what happened in the premises market in the first six months of the year. The report that analyzed 1,608 premises in the main corridors gave a perfect x-ray of the behavior of supply and demand.
The first fact is that, with a vacancy rate of 3.6%, there are clear signs of improvement. “ The market is recovering progressively , driven by growing demand, especially in areas where the quality of the premises offered has increased,” analyzes Carolina Wundes, manager of research & data analytics at Newmark. In other words, not just anything is rented out anywhere. The specialist clarifies that the locations and quality of the properties “weigh in” when making decisions. Although this year is a period of testing for Argentina, with inflation continuing to be the unwanted protagonist of the economy, premises in high-traffic areas , such as Palermo Soho and the downtown area, are a magnet for merchants and entrepreneurs .
“This trend indicates that, although the economy is going through difficult times, strategic areas continue to offer a refuge for those looking for ways to achieve greater presence and profitability,” says Winokur. In this sense, the Newmark report shows that the combination of “high flow of people, visible and accessible locations” is a winning formula in this context.
Regarding prices, the average rental value of a premises located in the city of Buenos Aires is US$23.2/m² per month - at the official exchange rate. “There was a decrease compared to previous semesters that is related to the characteristics of the availability of premises, many of which are adapted to the current demands of the market, which requires higher-category spaces ,” explains Winokur and shares the ranking of the turnover rate by corridors: the pole with the most movement is Santa Fe -between Coronel Diaz and Scalabrini Ortiz- 4.7%, then Cabildo Avenue 3.5%, Florida 3.3%, Santa Fe -between Callao and Pueyrredón- 2.2%, Palermo Soho 2%, Caballito and Alvear Avenue with 1.9% and finally, Rivadavia Avenue in Flores with 1.6%.
The commercial axis of Coronel Díaz and Santa Fe stores Alejandro Guyot
When analyzing which sectors drive demand, the survey indicated that fashion and textiles occupy 45% of the spaces in the main commercial corridors . This sector is especially strong in areas such as Avenida Alvear, where it represents 78% of the stores of luxury brands. “In fact, unlike other hubs, 48% of the supply is international brands,” Wundes explains.
Palermo Soho is another area where clothing is also predominant , but in this case, together with gastronomy. “We analysed the streets of Armenia, Gurruchaga, El Salvador and Honduras, where out of a total of 151 stores, 56% are fashion and textile stores and 26% are gastronomy stores, in addition 27% are chains and 73% are independent businesses, and more than 90% are national companies ,” says Winokur.
But if we analyse the market in general, gastronomy occupies 13% of the total number of establishments in the city and is essential for its power to complement the commercial offer and attract a diverse public. On Santa Fe Avenue, between Callao and Pueyrredón, the home and bazaar sector stands out with 17% of the establishments , showing a preference in that area for products for the home and decoration.
In this context, the research data also provides key figures for those looking at opportunities to buy or rent commercial space.
- Cabildo Avenue , the main avenue in the Belgrano neighborhood, has the largest number of stores: 460; followed by Florida with 303; and third place in the distribution of inventory is occupied by the Rivadavia section in the Flores neighborhood with 194. As a reference, Alvear Avenue is the one with the least commercial spaces: 56.
- The Caballito commercial hub (Rivadavia Avenue 4500-5300) has one of the lowest vacancies on the market (1.3%) and has the highest rental prices: US$45.8/m² per month. “It is still 12.2 percentage points less than the previous period,” Winokur explains. Next in the price ranking is Santa Fe Avenue between Callao and Pueyrredón with US$29.1/m² and then the section between Coronel Diaz and Scalabrini Ortiz US$25.3/m², Cabildo Avenue with spaces that are rented at US$21.3/m² and Palermo Soho, with prices of US$18.6/m² -at the official dollar exchange rate-.
- Florida pedestrian area is the area with the lowest rental prices on the market: US$14/m² and is one of the areas with the largest number of vacant spaces (7.2%). In addition, more than half of the stores are clothing and fashion stores belonging to independent and national brands.
- Alvear Avenue has the least inventory (56 premises) but it is the one with the highest vacancy rate (9.3%), followed by Florida (7.2%) and Cabildo Avenue (4.1%).
- The area with the highest occupancy is Palermo Soho : it has a vacancy rate of 0.7% in a market that averages 3.6%.
- Caballito , which due to its price and vacancy, could be considered one of the best performing corridors, is the area with the best proportion of items: it has 156 stores, of which 32% are fashion and textiles, 18% gastronomy, 12% health and beauty and 11% home and bazaar.
- National brands account for the majority of the demand in the city's retail market, with 93%, while international brands account for just 7%. Analysing the format, chains represent 42% of the spaces located and independent firms, 58%.
Good omens
The encouraging numbers in a scenario of lean cows reflect that, in addition to exposure, physical spaces also allow for greater proximity to the customer who, after the pandemic, is not satisfied with going to a store to buy: they want an experience and surprises in an attractive environment that encourages them to buy.Another trend of this time is strategic alliances with banks, which also partly explain the resilience of the retail market. “ They are a vital tool to sustain trade in the midst of economic adversity . Financing platforms that offer more flexible payment options help mitigate the impact of inflation on their pockets,” says Winokur.
Physical spaces in times of digital commerce allow for greater proximity to the customerAlejandro Guyot
For retailers looking for premises to rent, accessible lines of credit make it possible to “build” more attractive spaces for shopping and even expand their points of sale. “ Innovation and creativity are essential to offer unique and personalized shopping experiences ,” Wundes explains, anticipating that we are experiencing the beginning of a long-term transformation in the interaction between businesses and consumers.
For example, in recent years, Banco Galicia witnessed how digitalization changed the way customers interact with the company and identified that many customers still value direct contact with their advisors. “ We increased investment in the branch network with a strategic vision . To achieve this, the organization integrated the areas of Retail Banking, Planning and Infrastructure, and Real Estate,” says Nicolás de Mestico, manager of real estate and construction at the bank, adding that the bank works on acquiring properties instead of renting them.
“ This allows the bank to ensure long-term stability and the flexibility to adapt its operations to market needs . Investments in new branches have been designed as strategic hubs, equipped with advanced technology and acoustic materials,” adds de Mestico, clarifying that the commitment goes beyond infrastructure. “We are working to reduce the impact on the carbon footprint by reducing consumption through efficiency and incorporating renewable energy as a 100% source for operations , with the goal of reaching 90 by the end of the year.”
Looking ahead to the second half of the year, the report identifies specific trends.
- Resilience in strategic areas : Demand in key corridors remains strong, with low vacancy and a preference for differentiated shopping experiences, especially in the fashion and gastronomy sectors.
- Focus on sustainability and efficiency : Retailers will adopt more sustainable and efficient strategies, investing in energy improvements and digitalization to attract conscious consumers and optimize operations.
- Inflation impacts : Concentrate demand in high-traffic areas and locations that offer competitive prices and flexible payment options.
- Innovation, the engine of growth : Technology and loyalty programs will be key for merchants to capitalize on opportunities.
Ultimately, Argentina is redefining the rules of the game for retail . The drop in sales is putting flexibility to the test and inciting creativity and co-creation between different industries. “This dynamic shows how, in times of crisis, entrepreneurs not only survive, but thrive and overcome the complexities of today's market,” Winokur concludes.
www.buysellba.com
