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The real estate investment in which everything that comes on the market is rented in record time - La Nacion Propiedades
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La inversión inmobiliaria en la que todo lo que sale al mercado se alquila en tiempo récord
Así lo revelan los brokers del sector de retail que aseguran que no es fácil conseguir locales disponibles en CABA
www.lanacion.com.ar
November 08, 2024
This is revealed by brokers in the retail sector who assure that it is not easy to find available premises in CABA
By Maria Josefina Lanzi
Gastronomy drives demand for commercial premises in most neighborhoodsThomas Cuesta - THE NATION
In a market that has changed radically after the pandemic, commercial premises have become the difficult figure in real estate . This is according to experts in the real estate sector, who reveal that “everything that comes on the market” is quickly rented out and brand owners are “desperate” to find places to set up shop.
It is paradoxical because in a consumer world in which buyers are increasingly familiar with everything at the click of a button, the market for commercial premises is full and it is almost impossible for brands to find free space, especially in small premises, between 150 and 300 m².
On the other hand, although the banking entities left emblematic locations unoccupied, due to their migration to the digital format, these are premises that were quickly absorbed. “ It is not easy to find an available commercial premises, there are high levels of occupancy ,” reveals Alejandro Reyser, director of commercial real estate at Toribio Achával, and details: “The other day a broker from our team went through Las Heras and Callao, found out that a premises was being vacated that day there and in 24 hours we found a tenant for him.”
Shops without availability in the Acoyte and Rivadavia area, in CaballitoHernan Zenteno - The Nation
“Vacances are low and the reality is that the market is active,” says Marcos Ballario, from LJ Ramos. Domingo Speranza, partner and CEO of Newmark, also notes a lot of activity in the sector, although he notes that “ whatever is at a good price is rented quickly ,” and explains that “if prices go up too much, the market cannot afford it.”
For his part, Antonio Ginevra, president of Aranalfe Properties, shares this view, specifically regarding premises of less than 200 m², which “are seeing very rapid completion.” “ There are areas with very high demand where premises of less than 300 m² are rented even before they are vacated by the previous tenant. This occurs in Santa Fe and Coronel Díaz, Santa Fe and Ayacucho, Cabildo and Juramento and all the properties in Palermo with a gastronomic profile,” reveals the broker, although he clarifies that the larger spaces are requiring a period of between two and three months to be able to be rented.
In smaller premises, 150/200 m², demand is more fragmented between specialty cafes, health food stores, butcher shops and pharmacies.Alejandro Guyot
Clothing is one of the most active sectors in demand. “There are textile companies that are looking for large premises, of 400 square meters, such as the case of the Bragado clothing brand Leutthe, to which we sold the space located in Santa Fe and Callao,” says Ginevra, who has been in the commercial real estate market for more than half a century, and explains that this is a move that is part of the commercial strategy of this brand, in which they decide to invest in brick and mortar as a store of value.
Speranza points out another phenomenon: large premises (up to 1000 m², on avenues such as Caballito, Santa Fe or Triunvirato) that were subdivided into three or four smaller premises, to obtain smaller rents and not depend on a single tenant who may have difficulty meeting the payment.
Ginevra reveals that, in smaller premises, of 150/200 m², demand is more fragmented between specialty coffee shops, health food stores, butchers and pharmacies. “Before, the textile business competed with banking services and telephone companies, but now it is competing for space with unexpected players,” adds Ginevra.
Rentals in trendy areas
In the midst of this moving market, there are some areas that continue to consolidate, such as the design area on the streets of Arenales and Libertad . In fact, a historic space that was occupied by the De Levie decoration house on Arenales 1300 will soon be vacated and will go on the market for a rent of 12 million pesos.“The corridors have recovered,” reveals Speranza and details that Cabildo and Rivadavia avenues in Caballito and Flores, and Santa Fe in two sections (in the Alto Palermo area and the Callao – 9 de Julio section) are at high occupancy rates , “only Florida Street is suffering, which was hit by the pandemic.”
In line with this, Reyser explains that the reason behind this growth is that, before the change of government, tourism was high, a situation that boosted consumption; however, the blue dollar maintained a large gap with the official one, so the annual profitability was very low, around 1.5% to 2%.
After Milei took office, the properties maintained their value, but the exchange rate was adjusted, so profitability increased and went to around 5 to 5.5%. “They are still low, but they are not as low as they were a few years ago,” explains the director of Toribio Achaval.
Las Cañitas is increasingly consolidating itself as a trendy gastronomic hub in the CityCourtesy of Päns Bakers
Las Cañitas deserves a separate analysis. It is the trendy gastronomic neighborhood with a demand concentrated in areas such as cafes, bars, restaurants and clothing and beauty stores, which has had sustained growth since the post-pandemic.
“I visited it a year and a half ago, and I came back a month ago, and it is impressive how much has changed, the number of premises and commercial proposals that have been added,” reveals Ballario of LJ Ramos. According to figures from the same real estate agency, there are 234 premises in the area, which have a vacancy rate of 2.6% and rent around US$25.4 per square meter per month.
One of the premises to be vacated in the area is 170 m² and is located on República Eslovenia Street, between Arce and Báez, where a hamburger joint will be located, renting the space for $3,500,000 a month. Speranza believes that “to achieve sustainability over time, you need not only gastronomy, but a more varied commercial proposal.”
Although the area took off a few years ago, Aranalfe, referring to Solar de la Abadía, emphasises that the shopping mall business is an investment that today yields a much lower return than it did a few years ago. “Before, they had a 20% annual return rate, so you could recoup the investment in 5 years,” says Ginevra, explaining that today the rate of return is lower, so it is a high investment that is recovered in the longer term.
The neighborhoods and their mini shopping malls
The format that is becoming the star of retail is the local shopping centres - establishments that offer a variety of services and products concentrated in one place with several stores - which continue to consolidate, especially in the areas surrounding gated communities. "These places concentrate essential businesses, which leads to the disappearance of large supermarkets; the consumer has a different dynamic when it comes to shopping and looks for more niche places to go shopping, such as the boutique , the supermarket with a few meters, the premium fish market , among others," adds Ginevra. "It is a great market," reveals Reyser and adds: " We are going to put a lot of focus on that, in the suburbs they have grown and they are really a success."
The star of retail is local shopping centres New Quilmes Plaza
How are rents adjusting?
One point to bear in mind when negotiating a contract with the premises is that they are adjusted by CPI, they are made in pesos and are updated every three months . In any case, “tenants prefer to rent them for a longer period of time, since once a brand is positioned, losing the location is very costly ; in addition, the initial investment made when setting up the premises must be amortized,” says Speranza and details, in this regard, that supermarkets usually ask for contracts for 20 years, clothing stores for three to five years and food stores for five to 10.“Today, the rental of this type of property is leaving a return rate of 4/5% per year in dollars before taxes,” says Ginevra and explains that this is a lower income than before, since rents have gone up, but consumption has gone down and expenses such as services have increased , so owners prefer to keep the property as a store of value.
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