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The neighborhood where all brands want to be and have a waiting list to rent a space - La Nacion Propiedades
Source:
www.lanacion.com.ar
July 22, 2024
The three key variables that made the commercial hub aspirational
By Leandro Murciego
The neighborhood is one of the most sought after by brands Hernan Zenteno - The Nation
The commercial axis of Rivadavia Avenue in the Caballito area is currently one of the major attractions of the retail market. Its prominence is given by three factors that define the area: the highest rental value in the sector, one of the lowest vacancies in the market and a high demand from the main commercial brands.
For Santiago Winokur, broker at Newmark Argentina , this submarket is one of the most sought after by the most important firms. “ Many of the most important commercial companies in the sector are present in this hub, some of which are of international origin. Although, it should be noted that most of the brands present are from our country. Today, most firms know that having a store in this hub is much more than just positioning themselves . Without a doubt, the large pedestrian and vehicular movement that the area has - daily - justifies the investment value that the different brands must make to be there. This is something that no one questions anymore,” says the broker.
The area has a vacancy rate of just around 1%. “In other words, here - beyond the drop in consumption that has been recorded in recent months - there are very few brands or tenants willing to leave their commercial premises. That is why this is one of the commercial sectors with the fewest vacant premises in CABA,” says Winokur.
For Lucas Desalvo, industrial and retail broker at Cushman & Wakefield, this hub is historically known for the intersection of Acoyte and Rivadavia avenues, but there was clearly a spillover effect. This can be seen in the expansion that the area shows . The commercial force in Rivadavia and Acoyte expanded further, for example, from Acoyte to La Plata avenue and from Acoyte to Plaza Primera Junta. “Caballito, and especially Acoyte and Rivadavia, could be defined as the area that has 'the golden brick' . Today, everyone wants to be there. I could say that this is an aspirational place for many companies. Governments, economic cycles and fashions have passed through there, and -despite everything- the sector has always remained active,” explains Desalvo.
While in Caballito there are inquiries and demands for XXL properties in Florida, the owners of the spaces are thinking of subdividing themHernan Zenteno - The Nation
Marcos Ballario, a research analyst at the firm LJ. Ramos, maintains that the stretch of Rivadavia that is gaining the most prominence in recent times is the one that extends between Avenida de La Plata and República de Indonesia . This stretch, which attracts a large number of people and is characterized by its constant movement and the high presence of public transportation, is consolidating itself as one of the most sought-after areas by investors.
Marcelo Zuliani, commercial director of the firm Colliers Argentina, gives an overview of Caballito. “ There are currently around 156 stores there. The area has a very interesting tenant mix, which makes it one of the attractive areas for consumption ,” says the specialist.
As in other commercial sectors of the Buenos Aires map, the pulse of the place is set by both the textile sector (clothing and accessories) and the gastronomic sector; two of the sectors - which according to experts - best “performed” post-pandemic . “30.13% (48 stores) belong to clothing and accessories. 24.36% (38 stores) are occupied by gastronomic proposals. Hygiene, health and beauty follow, with 13.46% (21) and 7.05% (11) are occupied by financial services. The rest of the sectors are made up, in smaller percentages, of telephony, education, technology, mass consumption,” Zuliani adds.
Statistics from the consulted brokers reveal that the largest demanders of rentals today are companies linked to the clothing, gift and telephone sectors , among others.
Ballario explains that the Caballito market - like the rest of the sector - is undergoing a notable transformation . “This hub, in particular, is defined as a corridor focused on improving the visitor experience. The main objective of the brands located there is to invite the public to return, and to do so they rely on the quality of the product offered and on personalized attention,” says Ballario.
There, rental prices start at US$55/m2 and can reach prices that climb up to US$60/US$70 per m2.Hernan Zenteno - The Nation
Another characteristic of the area is that there is still a demand for large properties, a situation almost opposite to that experienced on the Florida pedestrian street. “ While in Caballito there are inquiries and demands for XXL properties in Florida, the owners of the spaces are thinking of subdividing them to make these properties competitive spaces that can satisfy the needs of the demand. In the case of Caballito, the largest or international companies are the ones on the hunt for properties that offer surfaces of more than 900 m2,” says Desalvo.
There, rental prices start at US$55/m² and can reach prices that climb to US$60/US$70/m² . “While for sales operations, these values, in the case of a 300/350 m2 premises, can be quoted at US$140,000,” says Ballario.
In the area, vacancy rates have historically been below 5%, although these rates are currently between 1% and 1.27%. “Here, in some specific areas - which are sometimes determined by 100 or 200-meter stretches - there is often a waiting list. As is also the case in Cabildo and Juramento or in some specific stretches of Santa Fe Avenue,” says Desalvo.
In these types of commercial hubs, the time of renegotiation of existing contracts becomes a pivotal period not only for the tenant, but also for the rest of the sector . These are moments when tenants must decide between the negotiation price and the underlying bidding that exists on the part of brands that want to enter this type of market, which usually exert pressure for the re-quotation or revaluation -always on the rise- of the properties.
Historically, vacancy rates in the area have been below 5%, although currently these rates are usually between 1% and 1.27%.Hernan Zenteno - The Nation
Regarding the type of contracts, as far as we know, most of them are being closed in pesos and with quarterly or four-monthly updates based on the CPI or basket of products. At present, there are also some cases of contracts in dollars with advance rents, but these are the minority. “One of the characteristics of current tenant contracts is that they require more dialogue between the parties and greater consensus than in other times ,” says the LJ man Ramos.
The stability of the area is given by the need to “be there” . This scenario, without a doubt, proposes greater predictability when it comes to understanding the movement of this market. Therefore, brokers understand that the current trend will continue there: high rental values, high demand, low vacancy and rising prices. “This scenario, in many cases, may lead to the establishment of new and important brands, which may arrive as the current contracts fail to be renewed with the current ones,” concludes Desalvo.
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Source:
El barrio en el que todas las marcas quieren estar y tiene lista de espera para alquilar un local
Las tres variables clave que logró que el polo comercial sea aspiracional
www.lanacion.com.ar
July 22, 2024
The three key variables that made the commercial hub aspirational
By Leandro Murciego
The neighborhood is one of the most sought after by brands Hernan Zenteno - The Nation
The commercial axis of Rivadavia Avenue in the Caballito area is currently one of the major attractions of the retail market. Its prominence is given by three factors that define the area: the highest rental value in the sector, one of the lowest vacancies in the market and a high demand from the main commercial brands.
For Santiago Winokur, broker at Newmark Argentina , this submarket is one of the most sought after by the most important firms. “ Many of the most important commercial companies in the sector are present in this hub, some of which are of international origin. Although, it should be noted that most of the brands present are from our country. Today, most firms know that having a store in this hub is much more than just positioning themselves . Without a doubt, the large pedestrian and vehicular movement that the area has - daily - justifies the investment value that the different brands must make to be there. This is something that no one questions anymore,” says the broker.
The area has a vacancy rate of just around 1%. “In other words, here - beyond the drop in consumption that has been recorded in recent months - there are very few brands or tenants willing to leave their commercial premises. That is why this is one of the commercial sectors with the fewest vacant premises in CABA,” says Winokur.
For Lucas Desalvo, industrial and retail broker at Cushman & Wakefield, this hub is historically known for the intersection of Acoyte and Rivadavia avenues, but there was clearly a spillover effect. This can be seen in the expansion that the area shows . The commercial force in Rivadavia and Acoyte expanded further, for example, from Acoyte to La Plata avenue and from Acoyte to Plaza Primera Junta. “Caballito, and especially Acoyte and Rivadavia, could be defined as the area that has 'the golden brick' . Today, everyone wants to be there. I could say that this is an aspirational place for many companies. Governments, economic cycles and fashions have passed through there, and -despite everything- the sector has always remained active,” explains Desalvo.
While in Caballito there are inquiries and demands for XXL properties in Florida, the owners of the spaces are thinking of subdividing themHernan Zenteno - The Nation
Marcos Ballario, a research analyst at the firm LJ. Ramos, maintains that the stretch of Rivadavia that is gaining the most prominence in recent times is the one that extends between Avenida de La Plata and República de Indonesia . This stretch, which attracts a large number of people and is characterized by its constant movement and the high presence of public transportation, is consolidating itself as one of the most sought-after areas by investors.
Marcelo Zuliani, commercial director of the firm Colliers Argentina, gives an overview of Caballito. “ There are currently around 156 stores there. The area has a very interesting tenant mix, which makes it one of the attractive areas for consumption ,” says the specialist.
As in other commercial sectors of the Buenos Aires map, the pulse of the place is set by both the textile sector (clothing and accessories) and the gastronomic sector; two of the sectors - which according to experts - best “performed” post-pandemic . “30.13% (48 stores) belong to clothing and accessories. 24.36% (38 stores) are occupied by gastronomic proposals. Hygiene, health and beauty follow, with 13.46% (21) and 7.05% (11) are occupied by financial services. The rest of the sectors are made up, in smaller percentages, of telephony, education, technology, mass consumption,” Zuliani adds.
Statistics from the consulted brokers reveal that the largest demanders of rentals today are companies linked to the clothing, gift and telephone sectors , among others.
Ballario explains that the Caballito market - like the rest of the sector - is undergoing a notable transformation . “This hub, in particular, is defined as a corridor focused on improving the visitor experience. The main objective of the brands located there is to invite the public to return, and to do so they rely on the quality of the product offered and on personalized attention,” says Ballario.
The most sought after premises
The most sought-after properties are usually those with between 300 and 500 m² and with frontages of between 5 and 10 linear meters. “As always, the favorites are the corners or the properties that have large windows . Another factor that is in the top five of requests is the height to be able to give space to the signage,” says Desalvo.
There, rental prices start at US$55/m2 and can reach prices that climb up to US$60/US$70 per m2.Hernan Zenteno - The Nation
Another characteristic of the area is that there is still a demand for large properties, a situation almost opposite to that experienced on the Florida pedestrian street. “ While in Caballito there are inquiries and demands for XXL properties in Florida, the owners of the spaces are thinking of subdividing them to make these properties competitive spaces that can satisfy the needs of the demand. In the case of Caballito, the largest or international companies are the ones on the hunt for properties that offer surfaces of more than 900 m2,” says Desalvo.
Market prices
The value of m2 in the Caballito axis of Rivadavia Avenue is much higher than in the rest of the market, largely due to the movement of people in the area, the purchasing power of its visitors and the scarce or almost non-existent supply of vacant premises.There, rental prices start at US$55/m² and can reach prices that climb to US$60/US$70/m² . “While for sales operations, these values, in the case of a 300/350 m2 premises, can be quoted at US$140,000,” says Ballario.
In the area, vacancy rates have historically been below 5%, although these rates are currently between 1% and 1.27%. “Here, in some specific areas - which are sometimes determined by 100 or 200-meter stretches - there is often a waiting list. As is also the case in Cabildo and Juramento or in some specific stretches of Santa Fe Avenue,” says Desalvo.
In these types of commercial hubs, the time of renegotiation of existing contracts becomes a pivotal period not only for the tenant, but also for the rest of the sector . These are moments when tenants must decide between the negotiation price and the underlying bidding that exists on the part of brands that want to enter this type of market, which usually exert pressure for the re-quotation or revaluation -always on the rise- of the properties.
Historically, vacancy rates in the area have been below 5%, although currently these rates are usually between 1% and 1.27%.Hernan Zenteno - The Nation
Regarding the type of contracts, as far as we know, most of them are being closed in pesos and with quarterly or four-monthly updates based on the CPI or basket of products. At present, there are also some cases of contracts in dollars with advance rents, but these are the minority. “One of the characteristics of current tenant contracts is that they require more dialogue between the parties and greater consensus than in other times ,” says the LJ man Ramos.
The stability of the area is given by the need to “be there” . This scenario, without a doubt, proposes greater predictability when it comes to understanding the movement of this market. Therefore, brokers understand that the current trend will continue there: high rental values, high demand, low vacancy and rising prices. “This scenario, in many cases, may lead to the establishment of new and important brands, which may arrive as the current contracts fail to be renewed with the current ones,” concludes Desalvo.
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