Premium Office Market in Latin America Shows Signs of Recovery: WTC Prime Office Index LatAm 2021
Miami, June 30, 2021 -- There are signs of recovery in the market for Premium offices in Latin American cities with less than two million inhabitants. This is a relevant finding of the World Trade Center (WTC) Prime Office Index Latam, released in June by the business publication Latin Trade. The Index covers 21 large, medium and small cities in the region.
The Index shows that the price per square foot on sales of prime office space in cities under 2 million like Monterrey and Montevideo, exceeds $280, a clear indication of lack of inventory.
At the same time, leases for Premium Offices in those cities will exceed $1.68 per square foot by the end of the year, an additional sign that there is room to increase supply.
The study also showed that the time needed to close the sale of Premium office space in Latin America increased this year and will increase a more in the remainder of 2021. However, rental prices will not fall. This is also reinforces the idea that the phase of falling demand and lower prices bottomed out in 2021.
Finally, the expectations indicator of the WTC Prime Office Index Latam was -19% in June 2021. This confirms an improvement in expectations compared the -32% in December 2020.
The WTC Prime Office Index Latam is built around an opinion survey with experts in the construction and brokerage of Class A offices in cities ranging in size from São Paulo and Mexico City to Colonia del Sacramento and Punta del Este.
Innovation
Innovation will be a key condition for success in the Premium office market. Some of the new World Trade Centers are setting new standards in this realm.
WTC Montevideo recently inaugurated a second tower which is located in the city's free-trade zone. It was built as a niche player, specializing in service-exporting companies. The building also houses spaces for co-working and startups.
WTC Nuevo Laredo, which will begin construction in the coming months, will be characterized as a technological-logistics cluster. It will host the headquarters of the Mexican Institute of Logistics; a technology park; an innovation and entrepreneurship district; and a nanotechnology and biotechnology research and development center. It will also have some traditional WTC amenities, such as hotels, a conventions, business club and areas of medical and financial
services. The planned investment is $145 million.
WTC Goiânia, located in the most important city for Brazilian agribusiness, was conceived around a concept that will change the combination of living spaces, work, commerce, and social relationships. The two towers will mix a hotel, offices, apartments, commercial areas (a 2,635-square-meters shopping mall), and meeting spaces including a convention center.
“The work-life balance has changed significantly, with people returning to the office, albeit with caution. Commercial properties are recalibrating and redefining the purpose of their spaces. Purposes such as health, sustainability, connectivity. This is where the World Trade Center continues to be a great differentiator: state-of-the-art facilities that are part of a hyper-connected global community, present in nearly 100 countries, ”said Robin van Puyenbroeck, Executive Director-Business Development of the World Trade Centers Association (WTCA).
View the full report here: https://latintrade.com/wp-content/uploads/2021/07/WTCA-JUL-21-ENG.pdf
About Latin Trade
Latin Trade is a niche publication that covers business in Latin America with
its magazine and a portfolio of digital channels. Founded in Miami 27 years ago, it focuses on analyzing the trends shaping the business environment in the region.
About the World Trade Centers Association (WTCA)
The WTCA is the association that brings together World Trade Centers around the world. It stimulates trade and investment opportunities for property developers, economic development agencies and international businesses to connect globally and prosper locally. In Latin America, licenses have been granted for the development of World Trade Centers in 51 cities.
Key Takeaways
- Signs of recovery in some Premium office markets in Latin America.
- Results of the World Trade Center Prime Office Index Latam 2021, which calculated the business publication Latin Trade.