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Why this is the time to move to a new neighborhood or remodel your offices if you have a company - La Nacion Propiedades
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Por qué este es el momento para mudarte de barrio o remodelar las oficinas si tenés una empresa
Se encuentran en desarrollo 206.000 m2 y se proyecta el ingreso de 157.000 m2 de superficie disponible en oficinas; las perspectivas del mercado ante el efecto de las medidas del nuevo Gobierno y el avance de la economía
www.lanacion.com.ar
March 18, 2024
206,000 m2 are under development and the entry of 157,000 m2 of available office space is projected; the market prospects given the effect of the new Government's measures and the progress of the economy
By Leandro Murciego
The honesty of the exchange rate is one of the favorable points of the new measures, which facilitates agreements between owners and tenants
At the beginning of the year, the mood of the premium office market - which had managed to gain a certain dynamism over the course of 2023 - was expectant and waiting for the repercussions or impact that the measures announced by the new Government could generate . Some representatives of the sector tell how the new cycle began and what expectations they have with the first months already passed.
The premium office segment (class A) had been showing favorable signs , says Carolina Wundes, market research coordinator at Cushman & Wakefield, and says that “in the last quarter of the year, especially during December, we were able to perceive a strong reactivation in the inquiries of this type of properties .”
In the fourth quarter of 2023, net absorption showed positive values (3,308 m²) after three periods of negative values. “However, and despite the fact that in the last quarter the office market registered a positive net absorption, the year ended with a negative accumulated annual value. “This was due to the entry of two new buildings , which did so with a very low occupancy (they contributed 41,660 available m² to the market),” explained Fernando Novoa Uriarte, director of Offices at Newmark Argentina. And he added: “ Vacancy, for its part, at the end of 2023 fell slightly, reaching 18.3 percent .” But if you had to define the final stretch of the last year with a single word, it would be: caution. And one piece of information that confirms this is the rented area during that period, which was 10,865 m², that is, 27% less than what was observed in the previous quarter.”
The keys to the offer
The year began with an available surface area of 334,733 square meters; if this number is compared to the beginning of 2023, it shows an increase of 16.8%. Regarding asking prices per square meter, they began the year averaging US$23.3/US$24.2 BNA. “Without a doubt, these values were and continue to be waiting for the impact of the economic measures that the new government will implement ,” says Wundes. And Novoa Uriarte adds: “currently, in the Buenos Aires territory, the submarkets that best defend their rental prices per square meter are the Norte Libertador corridor (US$30) and Palermo (US$26) .”
The asking prices per square meter for class A offices began the year averaging US$23.3/US$24.2 BNA.
According to Juan Manuel Farola, commercial manager of Colliers Argentina, at the beginning of 2024 the most competitive prices were found in the Macrocentro Sur submarket , where the square meter for rent was quoted at US$15.58.
On the other hand, Cushman & Wakefield explains that in the class B office market it maintained, at the beginning of the year, the trend observed in the second half of 2023 . “This indicates that the fly-to-quality pattern (jumping in quality to higher category offices or better locations) continues to influence the behavior of this sector,” they comment.
What's coming
Martín Potito, corporate director of LJ Ramos, is confident that the market will begin to show a rebound. “In this context, we are seeing that companies are, little by little, assimilating the new measures that were announced by the executive branch. We believe and hope that, after a reasonable time, companies will be able to recalculate their needs for surfaces and quality of the space they require to carry out their activities. In addition, there are companies that - for some time - have postponed their moving projects and/or remodeling of their offices. They, without a doubt, are the ones who will begin to energize the sector in the coming months,” predicts the specialist. And he expands: "In that sense, we see for the first half of this year an increase in consultations (a situation that we have already begun to observe concretely) in order to analyze alternatives, and quantify the investments necessary to be able to make decisions."Alejandro Reyser, director of Toribio Achával, believes that the market will face a first half of the year where caution will still reign, although little by little improvements would begin to be seen. “ Once the rules established by the new Government are put into operation, there will undoubtedly be some changes in different areas . To date, some modifications have already begun to be experienced. For example, with the repeal of the rental law, although this has a greater impact on the residential market, it also began to be felt in some specific issues regarding office rentals. The honesty of the exchange rate is another very favorable point of the new measures, which already facilitates agreements between owners and tenants in everything related to the rental fee,” explained Reyser. And he added: “ Some companies began to prepare for an Argentina that may finally start. If that were to happen, we will soon see a reactivation of the sector .”
Experts maintain that from the investor's point of view, the Government's measures, in particular the increase in the official exchange rate (TC) and the reduction of the exchange gap between the official exchange rate and the dollar counted with liqui (CCL ) or MEP (stock market dollar that operates in the Electronic Payment Market), has improved profitability , given that rental contracts are priced in the official dollar and are paid in pesos.
The submarkets that best defend their rental prices per square meter are the Norte Libertador corridor (US$30) and Palermo (US$26)
In construction
Regarding the future surface, 206,000 square meters of offices are under development, of which 157,000 square meters would be delivered by the first quarter of 2024. “What is striking about the data is that of this figure, close to To be completed, 145,185 m2 are being developed in the Palermo neighborhood and are distributed in three projects ( Paseo Gigena , Mirabilia 851 and Mirabilia Central),” explains Novoa Uriarte. And he adds: "Without a doubt, this income will have an impact on vacancy, given that it far exceeds the average gross absorption of the last five years, which stood at 77,000 square meters."If you put the magnifying glass on the square meters under construction, it could be said that 43.6 percent is concentrated in the Palermo submarket , followed by Catalinas/Retiro, with 20.3%. Third place is occupied by the Panamericana corridor, which is in GBA, with 18.9 percent. The list is closed by Zona Norte CABA and Microcentro, with 11.1 and 6.1, respectively.
The analysts consulted agree that if economic conditions adapt and a context of greater predictability prospers, companies will resume their corporate movement plans , thus promoting the absorption of new meters.
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