- 1 Minute Read
- 23rd September 2013
Buenos Aires Office Space Surge Reported
Supply of Buenos Aires office space was five times higher in the first half of 2013 than in the same period of 2012, according to a report from Jones Lang LaSalle.
Production levels were at a high unprecedented since the market's peak in 2010.
180,000 square feet of new corporate space was delivered by midyears, compared to around 36,000 square feet last year.
The report by Jones Lang LaSalle says: "In general terms, the market remains stable and robust compared to the last two years. This semester has record production figures since the peak of 2010, despite the delivery dates of several buildings had been postponed."
Several of the projects included in the first half statistics were in the pipeline during the last two quarters of 2012, but were delayed for a multitude of reasons.
All space completed was in the Zona Norte section of the city - described in the report as the "most dynamic, fastest growing district in Buenos Aires."
"Demand has been the leading metric of Buenos Aires of the past years...in 2010, absorption hit the 10-year historical maximum, after four years of continued expansion."
Despite new supply, vacancy rates appear to have stabilised in the city. Average vacancy rate of Class A and AB office space was 6.6 percent during the first six months, increasing by 1.5 after last years drop. Vacancy rates in Zona Norte are generally lower than in the Central Business District, Jones Lang LaSalle reports.
Office rents leveled at an average of $27 (£17) to $30 (£19) per square foot a month during the first half of the year, within the range for most Latin American cities.
Approximately 66,000 square feet of new supply are expected to enter the Buenos Aires market in the next six months.
"On the other hand, the Central Business District (CBD) is expected to be reactivated between 2014 and 2015 thanks to the incorporation of three sizable Class A projects," the firm reports.