©image:
Carlos Roberto Robles Alvarado
The office market is showing a steady recovery although the overall vacancy rate is 10.6%. It rose that high due largely to blocks of space becoming available in the highest prestige complexes. Given that it is highly desirable space, it should be absorbed in a short period of time – within 6 to 9 months. Approximately 75,000 m2 of 2010 and 2011 inventory are under construction and should finish within the next 10 months. Prices should continue stable for at least two more quarters; no softening of lease rates is foreseen when buildings currently under construction come on line. Demand should keep pace.
The industrial market experienced a strong recovery; its crisis gradually dissipating and free zones, warehouses and office warehouses have vacancy rates below 5%. Investment projects under construction or about to start are more active. At least 5 new office/warehouse projects entered the market since January. This further good news shows the banks renewed interest to provide credit for new projects with more accessible terms and conditions.
The retail market still experiences strong, steady demand. Multiplaza Escazú’s latest stage generated enormous pre-leasing and demand has remained strong. In malls, occupancy and pricing have remained stable. In strip and neighborhood centers occupancy has decreased slightly. Their tenants were more susceptible to the slowed economy; different retailers have closed or changed for less expensive sites. Prices therein are gradually increasing to previous levels. New projects continue, especially within the eastern portion of San Jose.
The industrial and office property market could expect a significant recovery by the end of 2010, returning to normal behavior where the completion of inventory goes hand in hand with economic growth.
Source: NAI Costa Rica
More on this topic
November 2011
An NAI Costa Rica Report for the third quarter 2011, gives analysis categorised by supply, demand and prices, and an evaluation of new projects.
Extract from the report:
The office property market is stable with an availability rate of 8.9%, up 1.1% from last quarter, due to the steady inflow of new office centers to the market.
April 2011
Vacancy rates for office real estate have stabilized, staying below 10%, which indicates that there is no oversupply.
The data comes from a summary of Costa Rica's office space real estate market for the last quarter of 2010 by NAI Costa Rica.
Supply increased slightly from 849,500 m2 to 856,500 m2 while vacancy rates dropped from 9.9% to 8.5%, due to increased occupancy in UltraPark II, Torre Mercedes and Forum I.
December 2010
Despite the crisis, prices remained stable and now a recovery in sales is detected.
The decline in interest rates is a key factor in improving the dynamics of the housing market, allowing operators to look at 2011 with optimism.
Lorena Alvarez's article in Elperiodico.com.gt, reported that Oscar Sequeira, of the Department of Statistics of the Construction Chamber, believes that "the end of the second half of this year could represent a growth of 10 to 20 percent from the first 6 months because in the last quarter there is a greater demand for housing.”
January 2012
The economic and tourism boom has created an inordinate amount of investment in hotels, which is threatening to lower the occupancy rate to unsustainable levels.
The opening of more than 20 hotels has been announced for 2012, adding 6,000 rooms to the inventory offered by Panama, and representing an annual increase of 300% in the hotel supply, while the increase in the number of visitors to the country during 2011 grew by - 13%, which although significant, is far below what would be needed to keep up the hotel occupancy rate, which currently stands at 66%.
español
1173
