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The occupancy rate of premises exceeds 97% in some avenues in Buenos Aires: rental prices and categories that stand out - Infobae
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www.infobae.com
January 12, 2025
The 2024 balance sheet was positive thanks to the start of the economic recovery. What other areas could expand in 2025?
By Jose Luis Cieri
Intersection of Triunvirato and Monroe Avenues, in Villa Urquiza, an area that presents high space occupancy and was enhanced during 2024
The retail market in the city of Buenos Aires closed 2024 with signs of recovery, while facing challenges inherited from the pandemic, such as competition from e-commerce and changes in consumer preferences, especially among younger people, who choose to buy through digital platforms instead of going to physical stores.
According to the analysis carried out on the basis of several companies operating in the commercial real estate market, the occupancy level was outstanding, reaching a general vacancy rate of less than 3% in dynamic areas, such as the corridors of Corrientes and Santa Fe avenues , between Congreso, Centro, Recoleta and Palermo.
The axes and intersection of Triunvirato and Monroe avenues in Villa Urquiza were also surprising . There, in particular, prices averaged USD 24.8 per square meter per month and the predominant commercial offer includes practical items such as hardware stores and paint stores, as well as a notable presence of clothing brands and food establishments.
Marcos Ballario Rota , a research analyst at LJ Ramos, told Infobae that the five main commercial arteries — Corrientes, Santa Fe, Córdoba, Rivadavia and Callao avenues — maintained their relevance, but there is “a growing push towards diversification in neighborhoods such as Villa Devoto, Colegiales and Villa Urquiza, which captured the interest of brands due to their commercial dynamism.”
The vacancy rate in Villa Urquiza, at 3%, is due to the intense flow of vehicles and pedestrians, driven by the presence of public transport and the proximity to the neighbourhood's train station. This dynamism is reinforced by the sustained commercial growth recorded over the last year.
Santa Fe Avenue and Callao, a recently rented property in the Recoleta neighborhood
“Compared to other areas of CABA, this vacancy rate is in line with the general average, which positions Villa Urquiza as an attractive corridor for commercial development,” added Ballario Rota.
This data highlights the market's appetite for strategic locations, especially in corridors with high pedestrian and vehicular traffic.
Ballario Rota added: “The average prices requested in the city averaged USD 27 per m2 per month , a figure that, although high, has not yet returned to pre-pandemic values.”
Expectations are very good for 2025 with sustained growth in demand, “and an increase in income,” Akian added.
In terms of the dynamics of sectors, the specialties that most drove demand in 2024 include the gastronomy sector , with a focus on specialty coffees and proposals that stand out for the customer experience, as well as services linked to health, beauty, and fashion.
“Specifically, clothing showed an interesting coexistence between first and second brands, thus ensuring diversity of prices and audiences,” commented Ballario Rota.
Values have risen compared to 2023; a space of between 80 and 100 square meters in main corridors such as Avenida Santa Fe can reach values of around $6,000,000 per month.
Emilio Castro and Saladillo Avenues, in Liniers, and the importance of decks on the street
Florida Street, a historic and emblematic commercial artery of Buenos Aires, also saw a notable resurgence during 2024.
“There, a similar property costs around $4,500,000 a month. The largest properties, over 250 m2, can cost over $14,000,000,” said Akian.
Ballario Rota commented: “In many cases, 2024 brought with it contract renegotiations, price revisions and, in certain cases, even relocations.”
This highlighted a competitive market in which strategic positioning became essential for those seeking to enter or expand operations.
In terms of trends, stores with surfaces between 200 and 250 m2 were particularly sought after, something that responds to the growing emphasis on optimizing the consumer experience , according to the specialists consulted.
Akian added: “Smaller premises on busy arteries were also in demand, especially by local businesses such as supermarkets and kiosk chains.”
Rivadavia Avenue and Acoyte, one of the most dynamic corners in terms of stores and brand occupancy in Caballito
In the case of gastronomic businesses, Corrientes, Cabildo, Santa Fe, 9 de Julio and Callao avenues concentrate the greatest demand due to the constant flow of people, although rents in these areas tend to be higher due to their strategic location.
The size of the premises also defines its functionality depending on the sector. For gastronomic ventures, a minimum space of 100 m2 is recommended, while a premises dedicated to delivery can operate efficiently with 50 m2.
Demand for commercial premises remains high, especially for spaces between 50 and 150 m2 in neighborhoods such as Palermo, Villa Crespo, Almagro and Caballito (Acoyte and Avenida Rivadavia areas and surrounding areas).
Yeger pointed out that several entrepreneurs with little capital opt for franchises, while others with experience opt for their own brand. “Corner stores, with wide sidewalks and the possibility of installing outdoor decks, are especially valued for their attractiveness to customers.”
In terms of sectors, Ballario Rota expects a consolidation of the textile sector, an expanding gastronomic market and a continuing decrease in vacancies in key corridors of the city.
Greater diversification towards emerging areas is also expected, reinforcing the importance of neighbourhoods such as Villa Devoto and Flores, which could become established as new commercial hubs.
www.buysellba.com
Source:
La ocupación de locales supera el 97% en algunas avenidas porteñas: precios de alquiler y rubros que se destacan
El balance de 2024 resultó positivo gracias al inicio de la recuperación económica. Qué otras zonas podrían expandirse en 2025
www.infobae.com
January 12, 2025
The 2024 balance sheet was positive thanks to the start of the economic recovery. What other areas could expand in 2025?
By Jose Luis Cieri
Intersection of Triunvirato and Monroe Avenues, in Villa Urquiza, an area that presents high space occupancy and was enhanced during 2024
The retail market in the city of Buenos Aires closed 2024 with signs of recovery, while facing challenges inherited from the pandemic, such as competition from e-commerce and changes in consumer preferences, especially among younger people, who choose to buy through digital platforms instead of going to physical stores.
According to the analysis carried out on the basis of several companies operating in the commercial real estate market, the occupancy level was outstanding, reaching a general vacancy rate of less than 3% in dynamic areas, such as the corridors of Corrientes and Santa Fe avenues , between Congreso, Centro, Recoleta and Palermo.
The axes and intersection of Triunvirato and Monroe avenues in Villa Urquiza were also surprising . There, in particular, prices averaged USD 24.8 per square meter per month and the predominant commercial offer includes practical items such as hardware stores and paint stores, as well as a notable presence of clothing brands and food establishments.
Marcos Ballario Rota , a research analyst at LJ Ramos, told Infobae that the five main commercial arteries — Corrientes, Santa Fe, Córdoba, Rivadavia and Callao avenues — maintained their relevance, but there is “a growing push towards diversification in neighborhoods such as Villa Devoto, Colegiales and Villa Urquiza, which captured the interest of brands due to their commercial dynamism.”
The vacancy rate in Villa Urquiza, at 3%, is due to the intense flow of vehicles and pedestrians, driven by the presence of public transport and the proximity to the neighbourhood's train station. This dynamism is reinforced by the sustained commercial growth recorded over the last year.
Santa Fe Avenue and Callao, a recently rented property in the Recoleta neighborhood
“Compared to other areas of CABA, this vacancy rate is in line with the general average, which positions Villa Urquiza as an attractive corridor for commercial development,” added Ballario Rota.
Favorable balance
According to the segment, despite the economic decoupling and efforts to revitalize the general context, together with the slowdown in inflation, “2024 was a good year, with very little vacancy and low turnover on the main arteries, reflecting a clear growth in demand. The premises on offer were quickly rented out,” said Martín Akian , commercial director of Aranalfe.This data highlights the market's appetite for strategic locations, especially in corridors with high pedestrian and vehicular traffic.
Prices and featured items in this sector
The rental value of premises showed significant growth during this year, with increases that exceeded the inflation rate, standing between 20% and 30% above this reference, a situation that is not common in the residential market where values now run below inflation .Ballario Rota added: “The average prices requested in the city averaged USD 27 per m2 per month , a figure that, although high, has not yet returned to pre-pandemic values.”
Expectations are very good for 2025 with sustained growth in demand, “and an increase in income,” Akian added.
In terms of the dynamics of sectors, the specialties that most drove demand in 2024 include the gastronomy sector , with a focus on specialty coffees and proposals that stand out for the customer experience, as well as services linked to health, beauty, and fashion.
“Specifically, clothing showed an interesting coexistence between first and second brands, thus ensuring diversity of prices and audiences,” commented Ballario Rota.
Values have risen compared to 2023; a space of between 80 and 100 square meters in main corridors such as Avenida Santa Fe can reach values of around $6,000,000 per month.
Runners who are the protagonists of revitalization
Although the traditional commercial avenues of CABA, such as Santa Fe, Corrientes, Córdoba, and Callao, remain as strategic axes for brands, Ballario Rota observed that “emerging areas such as Villa Devoto, Colegiales and Villa Urquiza significantly increased their prominence, attracting brands for their dynamism and accessibility.”
Emilio Castro and Saladillo Avenues, in Liniers, and the importance of decks on the street
Florida Street, a historic and emblematic commercial artery of Buenos Aires, also saw a notable resurgence during 2024.
“There, a similar property costs around $4,500,000 a month. The largest properties, over 250 m2, can cost over $14,000,000,” said Akian.
Limited options for tenants
Rising prices and low availability have led to limited opportunities for tenants.Ballario Rota commented: “In many cases, 2024 brought with it contract renegotiations, price revisions and, in certain cases, even relocations.”
This highlighted a competitive market in which strategic positioning became essential for those seeking to enter or expand operations.
In terms of trends, stores with surfaces between 200 and 250 m2 were particularly sought after, something that responds to the growing emphasis on optimizing the consumer experience , according to the specialists consulted.
Akian added: “Smaller premises on busy arteries were also in demand, especially by local businesses such as supermarkets and kiosk chains.”
What features are prioritized?
The location and characteristics of the premises are decisive when establishing a business. Ariel Yeger , from Yeger Negocios Inmobiliarios, highlighted that premises located on corners are especially valued for their greater visibility, provided they have at least 5 meters of frontage and the possibility of installing a large sign.
Rivadavia Avenue and Acoyte, one of the most dynamic corners in terms of stores and brand occupancy in Caballito
In the case of gastronomic businesses, Corrientes, Cabildo, Santa Fe, 9 de Julio and Callao avenues concentrate the greatest demand due to the constant flow of people, although rents in these areas tend to be higher due to their strategic location.
The size of the premises also defines its functionality depending on the sector. For gastronomic ventures, a minimum space of 100 m2 is recommended, while a premises dedicated to delivery can operate efficiently with 50 m2.
Demand for commercial premises remains high, especially for spaces between 50 and 150 m2 in neighborhoods such as Palermo, Villa Crespo, Almagro and Caballito (Acoyte and Avenida Rivadavia areas and surrounding areas).
Yeger pointed out that several entrepreneurs with little capital opt for franchises, while others with experience opt for their own brand. “Corner stores, with wide sidewalks and the possibility of installing outdoor decks, are especially valued for their attractiveness to customers.”
Optimistic projections for 2025
Experts are optimistic about the forecast for 2025. Akian said that “expectations are positive, with continued growth in demand and increases in rents .”In terms of sectors, Ballario Rota expects a consolidation of the textile sector, an expanding gastronomic market and a continuing decrease in vacancies in key corridors of the city.
Greater diversification towards emerging areas is also expected, reinforcing the importance of neighbourhoods such as Villa Devoto and Flores, which could become established as new commercial hubs.
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