Public sector promotes premium office market in Santiago Centro: Achieves positive absorption for the first time in 3 years
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Loading... - Gwen Hebert
- 05 Apr 2023
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This phenomenon occurred due to space leases by the government, which only during the first quarter leased approximately 2,500 m2, which are added to the 3,800 m2 of the previous quarter, according to CBRE data. Despite the positive indicator, the consultant warns that it is early to estimate a recovery in said commune, since the risk of tenant departure continues, due to the trend of preferences for offices in the eastern zone.
The premium office market (class A) in the Metropolitan Region continues to show signs of recovery for the third consecutive quarter. This is demonstrated by the latest report from the CBRE consultancy, which shows a positive net absorption (leases less capacity of the projects that entered) of 20,175 m2 at the end of the first quarter of 2023, this is 304% more than in the last quarter of last year.
The increase in absorption during the first three months of the year was influenced, according to the study, by the occupation of the area in the Las Condes district, where two large transactions took place in the El Golf neighborhood.
In Santiago Centro, meanwhile, for the first time in three years there was a positive absorption. At the end of the quarter, the absorption in said commune was 2,390 m2. This, explains Ingrid Hartmann, senior research manager at CBRE Chile, is due to the takeover of surface area by the government sector.
“Santiago Centro has benefited from the demand from the government, which only during the first quarter leased approximately 2,500 m2, which is added to the 3,800 m2 of the previous quarter. These leases, however, are specific cases that do not necessarily translate into a permanent recovery of that submarket. There are still users of the center who are looking to move to the East zone that could generate greater increases in the vacancy rate of the center in the remainder of 2023”, the executive deepens.
In terms of vacancy, the first quarter of the year closed with 11.26%, this is 44 base points less than in the previous quarter, showing the three communes reported by the consultant -Las Condes, Providencia and Santiago Centro- showing decreases in this indicator. According to the report, this was influenced "by the large takeovers of surfaces that occurred in the market and that managed to thwart the entry of the second stage of a new project." Read More…
