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The real estate business that has high demand: what are the areas and opportunities in the market? - Infobae
Source:
October 07, 2024
There are about 650 industrial parks in the country; the largest private investment is concentrated in Buenos Aires, while in the interior municipalities and provinces promote them and there are mixed initiatives.
By Gabriela Origlia
The industrial parks sector generates investment and development opportunities throughout the country Kletr
CORDOBA.- There are around 650 industrial parks in the country that house some 8,000 companies , although around 280 are registered in the National Registry of Industrial Parks. Experts believe there is a “significant” potential to continue developing them due to the existing demand even in an economic situation like the current one, one of recession. The strongest private bets , for the moment, are in the northern corridor of Buenos Aires , and in areas close to the cities of Córdoba, Rosario and Santa Fe. There are expectations of more investments in Vaca Muerta and mining areas in the north of the country.
Industrial parks are not only areas of interest for companies that, in one place, find what they need to operate, increase competitiveness and synergy , but they act as urban “computers”.
Alejandro Reyser, director of Commercial Real Estate at Toribio Achával , points out that most private investors in industrial parks come from the logistics industry , “they come because of their knowledge” and “their experience in the difficulties of obtaining good warehouses and land.” The construction of warehouses to deliver turnkey , in general, is made to order.
He describes it as “strange” that there are no real estate developers involved in the business: “Demand is growing and, despite that, there are more in the office market. This segment is an opportunity.”
Newmark Argentina 's Industry Director , Alejandro Winokur, confirms that "it is an opportunity" although he warns that a very significant investment is required, since the square meter of rural land in Buenos Aires, in the areas of greatest demand, is between US$15/m² and US$20/m² (it falls to about US$10/m² in Zárate or past Exaltación de la Cruz). For infrastructure, he estimates that between US$30/m² and US$50/m² must be added.
A logistics warehouse under construction
“Developers tend to do land banking ,” he adds. “They buy when there is a good chance, and they even go ‘stepping on’ land in different sectors if they project that it will work. In addition, you have to take into account the time that the procedures to change the land use regulations take, at least two years.” He illustrates this with the case of the Ostapovich group, which took a decade to consolidate developments. Winokur also points out that, in Buenos Aires, unlike in the interior, it is more common for investments to be private .
From the Industrial Parks Network, Darío Parlascino agrees that the bureaucracy of the authorizations must be streamlined , which he describes as “ a major obstacle.” He points out that what the demand is looking for is “to be close to the client or the supplier, to have energy capacity, ease of mobility” so “it is not useful to use the umbrella of 'industrial park' in an area where there are several companies.”
The federation is focused on the expansion of renewable energy in the parks. Cecchi describes that there is an imaginary “L” from Neuquén to Salta that is very useful for solar energy; another towards the south of Mendoza and Buenos Aires, with conditions for wind energy and, with the extension of the gas pipelines, in the Litoral it is possible to work with natural gas. “Access under the best conditions is key so that companies do not lose competitiveness - he adds -. We are moving forward to obtain financing from international organizations, lines to repay with the savings achieved in the bills.”
In Córdoba there is the first “green” industrial park in the country with its own waste recovery and chipping center; Polo 52 was founded six years ago with an investment that has already reached US$70 million. Cristian Martin, director and partner, says that they are building 70 new industrial warehouses, whose occupants will join the 100 companies established there . They are part of the network of parks in Córdoba, with which those installed have access to tax benefits and, in addition, they are carrying out an internal “training” initiative to offer a “comprehensive proposal.” There are already 142 hectares developed and will reach 200 with the expansion; the company only sells turnkey warehouses.
Polo 52 is a "green" industrial park in Córdoba that makes a profit from its wasteInfinity Open
Santiago Gatica, director and partner of District 13 in Guiñazú in the city of Córdoba, points out that it is the “first circular project because the industrial amenities and the entire policy of the complex are aimed at supporting companies that are based there to incorporate good practices of circular economy in a broad sense.” There are 21 hectares, divided into macro lots for large businesses; 70 industrial lots of 1,500 square meters and 20 logistics lots. In this stage, the land is being marketed; in the second, the warehouses will be sold. The planned investment is about US$5 million over three years.
“There is demand; we have directed it towards SMEs and those who need minimum operating units , which is a sector that was not being served,” Gatica said. Distrito 13 is a development group that has a residential initiative underway in Sinsacate, Colinas del Camino Real.
There are parks under construction in different areas of Buenos Aires . The one on Camino al Buen Ayre and Panamericana is nearing completion; another on the Autopista del Oeste, measuring 80 hectares, was even sold “completely before being finished,” says Simonelli. On the other hand, “it costs more because it is further away” one near the Pilar industrial park and another on the La Plata-Buenos Aires highway near Hudson. For 2025, there is a project planned at Km26 of that highway with the sale of land and the rental of warehouses.
Rodolfo Games, head of the Argentine Association of Industrial Parks, maintains that after the pandemic, private capital - especially those related to logistics - began to become more involved in the parks, while the number of mixed initiatives also increased. This trend, in his opinion, should be deepened since " the rent for sale and rent of turnkey warehouses is higher than that of housing ." For example, rent in Córdoba and Rosario is around US$6/m².
He agrees with Parlascino that there should be more projects in the north due to mining and in Vaca Muerta due to oil and gas. The Large Investment Incentive Regime (Rigi) could promote these initiatives , especially for the installation of companies that support the largest ones in the area of logistics, maintenance and services. “ It is an alternative to create industrial cities, to concentrate companies, generate employment, develop an extraordinary value chain ,” adds Parlascino.
In the interior there are lands that allow for up to 100 hectares, in Buenos Aires the available surfaces are smaller and are adapted to parks of six to 10 hectares.
Winokur argues that industrial parks are “all about profit. You don’t always have to think about 100 hectares. That can happen in Córdoba, which has scale, but in other places it is difficult to imagine that size, it can be six hectares or 10, adapted to what is required .” Regarding the advances in other areas of the country, he explains that in Neuquén the first to buy land for these developments were the oil companies, while in Zárate-Campana, the largest companies did so as well.
Regarding the construction of warehouses, Reyser indicates that most developers offer to build them to measure: “They think a lot before building speculatively. Credit should be available for developers; for many years there has not been the possibility of a line at normal rates. If they did arise, there would be enormous activity because the repayment is matched with the income generated.”
Deciding between buying and renting requires evaluating costs and conveniences and this is linked to each company's business plan, although the Network recognizes that the investment, in general, is "significant" and requires financing. "There are banks that offer alternatives," they add.
Another factor to take into account is the tax benefits and exemptions from paying for specific services granted by municipalities and provinces. “This advantage can improve the competitiveness of SMEs and it is worth evaluating its impact to measure the final return on investment,” they say.
www.buysellba.com
Source:
October 07, 2024
There are about 650 industrial parks in the country; the largest private investment is concentrated in Buenos Aires, while in the interior municipalities and provinces promote them and there are mixed initiatives.
By Gabriela Origlia
The industrial parks sector generates investment and development opportunities throughout the country Kletr
CORDOBA.- There are around 650 industrial parks in the country that house some 8,000 companies , although around 280 are registered in the National Registry of Industrial Parks. Experts believe there is a “significant” potential to continue developing them due to the existing demand even in an economic situation like the current one, one of recession. The strongest private bets , for the moment, are in the northern corridor of Buenos Aires , and in areas close to the cities of Córdoba, Rosario and Santa Fe. There are expectations of more investments in Vaca Muerta and mining areas in the north of the country.
Industrial parks are not only areas of interest for companies that, in one place, find what they need to operate, increase competitiveness and synergy , but they act as urban “computers”.
Alejandro Reyser, director of Commercial Real Estate at Toribio Achával , points out that most private investors in industrial parks come from the logistics industry , “they come because of their knowledge” and “their experience in the difficulties of obtaining good warehouses and land.” The construction of warehouses to deliver turnkey , in general, is made to order.
He describes it as “strange” that there are no real estate developers involved in the business: “Demand is growing and, despite that, there are more in the office market. This segment is an opportunity.”
Newmark Argentina 's Industry Director , Alejandro Winokur, confirms that "it is an opportunity" although he warns that a very significant investment is required, since the square meter of rural land in Buenos Aires, in the areas of greatest demand, is between US$15/m² and US$20/m² (it falls to about US$10/m² in Zárate or past Exaltación de la Cruz). For infrastructure, he estimates that between US$30/m² and US$50/m² must be added.
A logistics warehouse under construction
“Developers tend to do land banking ,” he adds. “They buy when there is a good chance, and they even go ‘stepping on’ land in different sectors if they project that it will work. In addition, you have to take into account the time that the procedures to change the land use regulations take, at least two years.” He illustrates this with the case of the Ostapovich group, which took a decade to consolidate developments. Winokur also points out that, in Buenos Aires, unlike in the interior, it is more common for investments to be private .
From the Industrial Parks Network, Darío Parlascino agrees that the bureaucracy of the authorizations must be streamlined , which he describes as “ a major obstacle.” He points out that what the demand is looking for is “to be close to the client or the supplier, to have energy capacity, ease of mobility” so “it is not useful to use the umbrella of 'industrial park' in an area where there are several companies.”
The importance of sustainability
“There is no boom, but municipalities and provinces are promoting them to generate added value ,” says the president of the Argentine Federation of National Parks, Alfredo Cecchi, who stresses that demand prioritizes those that offer better energy conditions and also a circular economy : “The industry is increasingly associated with sustainable environmental management because the market demands it, even more so the export sectors.”The federation is focused on the expansion of renewable energy in the parks. Cecchi describes that there is an imaginary “L” from Neuquén to Salta that is very useful for solar energy; another towards the south of Mendoza and Buenos Aires, with conditions for wind energy and, with the extension of the gas pipelines, in the Litoral it is possible to work with natural gas. “Access under the best conditions is key so that companies do not lose competitiveness - he adds -. We are moving forward to obtain financing from international organizations, lines to repay with the savings achieved in the bills.”
In Córdoba there is the first “green” industrial park in the country with its own waste recovery and chipping center; Polo 52 was founded six years ago with an investment that has already reached US$70 million. Cristian Martin, director and partner, says that they are building 70 new industrial warehouses, whose occupants will join the 100 companies established there . They are part of the network of parks in Córdoba, with which those installed have access to tax benefits and, in addition, they are carrying out an internal “training” initiative to offer a “comprehensive proposal.” There are already 142 hectares developed and will reach 200 with the expansion; the company only sells turnkey warehouses.
Polo 52 is a "green" industrial park in Córdoba that makes a profit from its wasteInfinity Open
Santiago Gatica, director and partner of District 13 in Guiñazú in the city of Córdoba, points out that it is the “first circular project because the industrial amenities and the entire policy of the complex are aimed at supporting companies that are based there to incorporate good practices of circular economy in a broad sense.” There are 21 hectares, divided into macro lots for large businesses; 70 industrial lots of 1,500 square meters and 20 logistics lots. In this stage, the land is being marketed; in the second, the warehouses will be sold. The planned investment is about US$5 million over three years.
“There is demand; we have directed it towards SMEs and those who need minimum operating units , which is a sector that was not being served,” Gatica said. Distrito 13 is a development group that has a residential initiative underway in Sinsacate, Colinas del Camino Real.
Prices and infrastructure
In general, the sources consulted by LA NACION admit that there is a shortage of land in many of the areas where demand is concentrated . From the Industrial division of Toribio Achával, the broker Alejandro Simonelli details that medium to large companies are the ones that concentrate the orders. Prices in Buenos Aires for a 3000 square meter plot (of which 1600 meters can be developed at most) vary greatly; in Escobar on the Pan-American highway, US$80/m²; in Tigre, US$110/m² “and there is not much”; on Camino al Buen Ayre Km230 and Acceso Oeste, US$130/m²; in the Hudson area, US$120/m².There are parks under construction in different areas of Buenos Aires . The one on Camino al Buen Ayre and Panamericana is nearing completion; another on the Autopista del Oeste, measuring 80 hectares, was even sold “completely before being finished,” says Simonelli. On the other hand, “it costs more because it is further away” one near the Pilar industrial park and another on the La Plata-Buenos Aires highway near Hudson. For 2025, there is a project planned at Km26 of that highway with the sale of land and the rental of warehouses.
Rodolfo Games, head of the Argentine Association of Industrial Parks, maintains that after the pandemic, private capital - especially those related to logistics - began to become more involved in the parks, while the number of mixed initiatives also increased. This trend, in his opinion, should be deepened since " the rent for sale and rent of turnkey warehouses is higher than that of housing ." For example, rent in Córdoba and Rosario is around US$6/m².
He agrees with Parlascino that there should be more projects in the north due to mining and in Vaca Muerta due to oil and gas. The Large Investment Incentive Regime (Rigi) could promote these initiatives , especially for the installation of companies that support the largest ones in the area of logistics, maintenance and services. “ It is an alternative to create industrial cities, to concentrate companies, generate employment, develop an extraordinary value chain ,” adds Parlascino.
In the interior there are lands that allow for up to 100 hectares, in Buenos Aires the available surfaces are smaller and are adapted to parks of six to 10 hectares.
Winokur argues that industrial parks are “all about profit. You don’t always have to think about 100 hectares. That can happen in Córdoba, which has scale, but in other places it is difficult to imagine that size, it can be six hectares or 10, adapted to what is required .” Regarding the advances in other areas of the country, he explains that in Neuquén the first to buy land for these developments were the oil companies, while in Zárate-Campana, the largest companies did so as well.
Regarding the construction of warehouses, Reyser indicates that most developers offer to build them to measure: “They think a lot before building speculatively. Credit should be available for developers; for many years there has not been the possibility of a line at normal rates. If they did arise, there would be enormous activity because the repayment is matched with the income generated.”
Guidance for SMEs
Regarding the requirements for entering the parks, the Parks Network maintains that there are consultancy firms that can advise on the best location based on the needs of SMEs, the services offered by the complex, the available surface area and the price per square metre. Relocation has an impact on those who work for the company.Deciding between buying and renting requires evaluating costs and conveniences and this is linked to each company's business plan, although the Network recognizes that the investment, in general, is "significant" and requires financing. "There are banks that offer alternatives," they add.
Another factor to take into account is the tax benefits and exemptions from paying for specific services granted by municipalities and provinces. “This advantage can improve the competitiveness of SMEs and it is worth evaluating its impact to measure the final return on investment,” they say.
www.buysellba.com
