Global Locations
Argentina Buenos Aires City Latin America, Buenos Aires North Bahamas & The Caribbean Nassau Brazil Säo Paulo Rio de Janeiro
Chile Santiago
Costa Rica San Jose
Jamaica Kingston
Mexico Ciudad Juarez Guadalajara Matamoros Mexicali Mexico City Monterrey Queretaro Reynosa San Luis Potosi Tijuana
Panama Panama City
Peru Lima
Puerto Rico San Juan
Venezuela Caracas
Mauro Keller Sarmiento, SIOR Executive Managing Director, International Business +54 11 4320 4320 and their company associates. Any dissemination or replication, without the express authorization of NAI Global, is strictly prohibited. [email protected] Buenos Aires Market Report First Semester June 30th 2015
Economic Overview
GPD GROWTH 0.4% INFLATION 16.5% UNEMPLOYMENT RATE 7.7% CURRENCY Pesos Argentinos $ARS Trends JUNE 30th - 2015 CONVERSION RATE (VS USD) 8.8 Vacancy Estimates Total Sale Average Lease Average Rate Take Up Asking Rates Asking Rates
Prime Offices The semester of 2015, presents a negative total net absorption at -2,200 sqm, indicating excessive rentable area available to lease.The distribution of the demand shows positive net absorption in the Catalinas and Macrocentro Sur submarkets. Sale Value (USD / m2) Lease Value (USD / m2 /month) USD 3,800 USD 26
Prime Industrial The northern area of Buenos Aires accumulates 87% of the available surface area. This area includes the Triángulo San Eduardo and Route 9 which record the highest rental prices, reaching an average lease value of
USD 8.0/sqm/month. Sale Value (USD / m2) Lease Value (USD / m2 / month) USD 600 USD 7.5
Prime Retail The Retail sector has show a high level of vacancy observed in the main streets of Buenos Aires (Florida and Sta Fe Ave). Regarding leasing values, prices rise below inflation which affects profitability negatively, in order to maintain the premises occupied. Sale Value (USD / m2) Lease Value (USD / m2 / month) USD 6,500 USD 35
Prime Offices stock distribution by submarket
28.74% Puerto Madero 6.4% Corredor 9 de Julio 20.54% Zona Norte Panamericana 4.9% Belgrano, Núñez, Saavedra 13.6% Plaza Roma 4.9% Microcentro 10% Catalinas 1.9% Plaza San Martín 9% Zona Norte Libertador San Martin 640 – 10th Floor Buenos Aires - Argentina +54 11 4320-4320 www.NAIArgentina.com Nassau Market Report First Semester June 30th 2015
Economic Overview
GPD GROWTH 2.1% INFLATION 1.9% UNEMPLOYMENT RATE 15.9% CURRENCY Bahamian Dollar B$ Trends JUNE 30th - 2015 CONVERSION RATE (VS USD) 1:1 Vacancy Estimates Total Sale Average Lease Average Rate Take Up Asking Rates Asking Rates
Prime Offices The demand for Class A office space has shown no improvement and remains flat. The vacancy rate in June 2015 was 9.50% down slightly from 9.54 % in October 2014. Our financial services industry continues to be challenged and has been contracting. Sale Value (USD / m2) Lease Value (USD / m2 /month) USD 2,903 USD 30.4
Prime Industrial This market is limited almost exclusively to warehouse developments of which there are not many. Data only covers those properties for which we are able to collect reliable data. This market is not growing due to the
state of the local economy. Sale Value (USD / m2) Lease Value (USD / m2 / month) - USD 13.5
Prime Retail There was a marginal increase in the vacancy rate during this period from 8.81% to 8.91%. The vast majority of the retail space is in regional strip malls catering to the local trade. Only 10.38% of stock is located in the CBD. Sale Value (USD / m2) Lease Value (USD / m2 / month) - USD 25.5
Prime Industry stock distribution by submarket 45% Nassau West 29.4% Nassau CBD 21.8% Nassau East 3.3% Nassau PI P.O. Box N-1132 Nassau - Bahamas +1 242 396 0028 www.NAIBahamas.com São Paulo BRAZIL Market Report First Semester June 30th 2015
Economic Overview
GPD GROWTH -1.5% INFLATION 8.89% UNEMPLOYMENT RATE 7.9% CURRENCY Brazilian Real R$ Trends JUNE 30th - 2015 CONVERSION RATE (VS USD) 3.18 Vacancy Estimates Total Sale Average Lease Average Rate Take Up Asking Rates Asking Rates
Prime Offices Vacancy rate trend continues to rise since new inventory for the remaining of 2015 is high and the economy is weak. As a consequence lease rates will continue drifting down. Sale Value (USD / m2) Lease Value (USD / m2 /month) USD 4,447 USD 35
Prime Industrial We expect vacancy rate to remain between 15% to 20%. Several projects are being delayed to cope with the economy pace. Rates will remain on a low trend until mid-2016.
Sale Value (USD / m2) Lease Value (USD / m2 / month) USD 719 USD 6
Prime Retail Consumption was been affected by increase in interest rates and low consumer confidence. The trend in this sector is similar to others and reflects current economic environment.
Sale Value (USD / m2) Lease Value (USD / m2 / month) USD 4,024 USD 30
Prime Offices stock distribution by submarket
17% Berrini 8% Marginal Oeste 14% Faria Lima 7% Marginal Sul 14% Itaim / JK 7% Paulista 12% Chucri Zaidan 5% Marquês São Vicente 160 George Eastman, Street 8% Vila Olimpia 4% Chácara Sto Antônio São Paulo - Brazil 3% Marginal Morumbi +55 11 3755 8888 www.NAIDworking.com Santiago CHILE Market Report First Semester June 30th 2015
Economic Overview
GPD GROWTH 2.4% INFLATION 4% UNEMPLOYMENT RATE 6.6% CURRENCY Chilean Peso CLP$ Trends JUNE 30th - 2015 CONVERSION RATE (VS USD) 646.8 Vacancy Estimates Total Sale Average Lease Average Rate Take Up Asking Rates Asking Rates
Prime Offices The 1Q/2015 showed a decline in the average absortion, resulting in a negative indicator of 5.620 m² in the prime sector. The vanacy rates rise up almost double than 1Q/14 (1Q/15: 8,22%) and the average rental price fell 26.89 USD / m² to 24.12 USD / m² Sale Value (USD / m2) Lease Value (USD / m2 /month) USD 3,460 USD 23.6
Prime Industrial
No-data
Sale Value (USD / m2) Lease Value (USD / m2 / month) no-data no-data
Prime Retail No-data
Sale Value (USD / m2) Lease Value (USD / m2 / month) no-data no-data
Prime Offices stock distribution by submarket 69.7% El Golf 30.3% Nueva Las Condes
Av. Pdte Riesco 3451, Las Condes Santiago - Chile. +56 2 2347 7000 www.NAISarra.cl San Jose Great Metropolitan Area Market Report First Semester June 30th 2015
Economic Overview
GPD GROWTH 3.4% INFLATION 4% UNEMPLOYMENT RATE 10% CURRENCY Costa Rica Colón CCRC Trends JUNE 30th - 2015 CONVERSION RATE (VS USD) 536 Vacancy Estimates Total Sale Average Lease Average Rate Take Up Asking Rates Asking Rates
Prime Offices Vacancy rates are improving compared to past periods. There is good A class product in the market that is pushing prices lower and this can benefit office clients. Sale Value (USD / m2) Lease Value (USD / m2 /month) USD 1,550 USD 17.3
Prime Industrial Industrial sector has been behaving positively. The vacancy rate is very good at 5,14%. New projects entering the market have had good absorp- tions. New industrial projects and expansions are expected.
Sale Value (USD / m2) Lease Value (USD / m2 / month) USD 867 USD 6.8
Prime Retail The retail sector has been moving very well. Recognized Franchise expansions and new penetrations are expected in the near future. Also, biggest new Regional Center will be introduced before years end.
Sale Value (USD / m2) Lease Value (USD / m2 / month) USD 1,422 USD 22.2
Prime Offices stock distribution by submarket
23.66% San José Oeste 7.6% Sabana 21.28% Heredia 4.74% San José Noreste 20.09% San José Centro 1.68% Alajuela Oficentro Madrid, Pozos de Sta. Ana 11.02% San José Este 0.87% San José Sur San José - Costa Rica 8.3% Pavas/ Uruca 0.74% Cartago ++506 2203 5171 www.NAICostarica.com Kingston & Montego Bay Market Report First Semester June 30th 2015
Economic Overview
GPD GROWTH 0.1% INFLATION 5% UNEMPLOYMENT RATE 14.2% CURRENCY Jamaican Dollars J$ Trends JUNE 30th - 2015 CONVERSION RATE (VS USD) 116.6 Vacancy Estimates Total Sale Average Lease Average Rate Take Up Asking Rates Asking Rates
Prime Offices Takeup of prime offices is slow due to the fact that most of these offices are in the CBD in Kingston where maintenance costs levied by the Land- lord are high – sometimes higher than the rent. Sale Value (USD / m2) Lease Value (USD / m2 /month) USD 954 USD 7.2
Prime Industrial Static activity with little new development taking place.
Sale Value (USD / m2) Lease Value (USD / m2 / month) USD 630 USD 5
Prime Retail Suffering from a flat economy. Many rentals were set in US$ and with the decline of the Jamaican dollar, rental charge is increasing. Some retailers have vacated units.
Sale Value (USD / m2) Lease Value (USD / m2 / month) USD 1,883 USD 12.5
31 Upper Waterloo Road Kingston - Jamaica +1 876 925 7861 www.NAIJamaica.com Mexico City Market Report First Semester June 30th 2015
Economic Overview
GPD GROWTH 2.2% INFLATION 3% UNEMPLOYMENT RATE 4.7% CURRENCY Mexican Peso $MXN Trends JUNE 30th - 2015 CONVERSION RATE (VS USD) 15.35 Vacancy Estimates Total Sale Average Lease Average Rate Take Up Asking Rates Asking Rates
Prime Offices Office market reflects strong demand. Current office inventory is 89.3 million sf. Leasing activity still slightly higher than construction. Most subsectors have under 8% vacancy rate. Sale Value (USD / m2) Lease Value (USD / m2 /month) USD 4,000 USD 32
Prime Industrial Industrial space inventory at 148 million sf. Construction of new space slightly higher than leased / sold space. Vacancy rate at 5.0%, with two subsectors showing 0.0% vacancies.
Sale Value (USD / m2) Lease Value (USD / m2 / month) USD 700 USD 6.5
Prime Retail Multiple medium to large and mega shopping centers under construction, as well as neighborhood strip malls. Increased available inventory has kept asking prices flat. Construction is keeping up with increasing demand.
Sale Value (USD / m2) Lease Value (USD / m2 / month) USD 3,000 USD 100
Prime Offices stock distribution by submarket 22.08% Insurgentes 6.18% Bosques de las Lomas 17.52% Polanco 6% Periférico Norte 13.97% Santa Fe 1.51% Interlomas 12.15% Paseo de la Reforma 1.3% Lomas Altas Blvd. Agua Caliente #10611- Loc. 1 PB 9.07% Lomas de Chapultepec 2.81% Otros Colonia Aviación, Tijuana B.C. - Mexico MX US 7.41% Periférico Sur +52 664 971 0333 619 690 30209 www.NAIMexico .com Panama Market Report First Semester June 30th 2015
Economic Overview
GPD GROWTH 6.7% INFLATION 2.5% UNEMPLOYMENT RATE 5.1% CURRENCY Balboa B/. Trends JUNE 30th - 2015 CONVERSION RATE (VS USD) 1.0 Vacancy Estimates Total Sale Average Lease Average Rate Take Up Asking Rates Asking Rates
Prime Offices 16,663 m2 of Class A Office Space was absorbed this trimester (net), with a total of more than 60.720 m2 of gross absorption, which includes new offices pre-sold to corporate users, and companies moving from Class B & C offices to Class A offices. Sale Value (USD / m2) Lease Value (USD / m2 /month) USD 2,724 USD 21.90
Prime Industrial Panamas continued growing economy, its position as hub of the americas and the soon to be inaugurated expanded Panama Canal, are all presen- ting interesting oportunities in the industrial sector.
Sale Value (USD / m2) Lease Value (USD / m2 / month) USD 1,250 USD 9.60
Prime Retail The Retail industry is booming at this moment. Panama is seeing the US style Strip Mall and mini mall concept being built all over the city and the interior, where malls were non-existent.
Sale Value (USD / m2) Lease Value (USD / m2 / month) USD 3,500 USD 22.80
Prime Offices stock distribution by submarket
41.24% Central Financial District 7.11% Panama North 18.07% Panama East 5.29% Reverted Areas 15.57% Panama Central 0.84% Panama West 11.88% Panama South Green Plaza,1st Floor Suite 201 Costa del Este - Panamá +507 300 5300 www.NAIPanama.com Lima Market Report First Semester June 30th 2015
Economic Overview
GPD GROWTH 3.9% INFLATION 3.4% UNEMPLOYMENT RATE 7.0% CURRENCY Nuevo Sol S/. Trends JUNE 30th - 2015 CONVERSION RATE (VS USD) 3.16 Vacancy Estimates Total Sale Average Lease Average Rate Take Up Asking Rates Asking Rates
Prime Offices At the end of the first half of the year was registered the income 80,000 m² of offices ( Lima central Tower and Centro Empresarial Leuro), leaving a vacancy level of 15%, with the entry of two new Prime towers making a whole stock of approximately 650,000 m² in Lima. Sale Value (USD / m2) Lease Value (USD / m2 /month) USD 2,240 USD 20,35
Prime Industrial Demand of the industrial and logistics sector has remained in 1S15 . The vacancy of warehouses has increased to 10% due to the exit of some companies. It is estimated that approximately 60,000 m2 of warehouses
developed in southern Lima in 2S15. Sale Value (USD / m2) Lease Value (USD / m2 / month) USD 1,200 USD 5
Prime Retail The evolution of malls has been increasing. The average vacancy in the Prime Retail is 5 % of a total stock of 2,200 shops approximately. However, sales rate in the 1S15 was decreasing and it is expected an increase in the 2S15. Sale Value (USD / m2) Lease Value (USD / m2 / month) USD 3,100 USD 69
Prime Offices stock distribution by submarket 39% Sanhattan 26% Surco 19% San Isidro 16% Miraflores 191 Calle Pedro Denegri, Surco Lima - Peru + 511 2719966 www.NAIPeru.com San Juan Market Report First Semester June 30th 2015
Economic Overview
GPD GROWTH -0.9% INFLATION -1.3% UNEMPLOYMENT RATE 12.2% CURRENCY USD Trends JUNE 30th - 2015 CONVERSION RATE (VS USD) 1:1 Vacancy Estimates Total Sale Average Lease Average Rate Take Up Asking Rates Asking Rates
Prime Offices The total annual inventory is 12.9 M square feet of Class A and B office building within the San Juan metro area. Class A vacancy is estimated at 10% which reflects a small increase on the vacancy rate due to a recent merge of a few local banks. Sale Value (USD / m2) Lease Value (USD / m2 /month) USD 1,775 USD 16
Prime Industrial Despite the exit of some pharmaceutical companies from the Island other new business in the aerospacial sector have entered the Puerto Rico market leveling out the vacancy rate. Current vacancy rate currently sits
at an estimated 18%. Sale Value (USD / m2) Lease Value (USD / m2 / month) USD 377 USD 5.5
Prime Retail Although the retail market contiunes to be stable a small increase on the vacancy rate has been reflected due to the opening of the new Mall of San Juan and the exit of a several K-mart stores.
Sale Value (USD / m2) Lease Value (USD / m2 / month) no-data USD 24.5
Prime Offices stock distribution by submarket
72% San Juan 22% Guaynabo 6% Carolina 1064 Ponce de Leon ave. San Juan, P.R. 00907 D +787 466 4295 F +787 724 0084 www.NAIGlobal.com Caracas Market Report First Semester June 30th 2015
Economic Overview
GPD GROWTH -4% INFLATION 70% UNEMPLOYMENT RATE 8% CURRENCY Venezuelan Bolivar Bs. Trends JUNE 30th - 2015 CONVERSION RATE (VS USD) 200 Vacancy Estimates Total Sale Average Lease Average Rate Take Up Asking Rates Asking Rates
Prime Offices There are two main projects in Caracas but primary market still under demand. Multinational and middle size companies which can not trans- fer their rent to another country could be looking for new offices. 100% leased price increased. Sale Value (USD / m2) Lease Value (USD / m2 /month) USD 4,000 USD 15
Prime Industrial Caracas has small industrial zones, Polar which is the biggest food and beverage company in the country starts to shut down small plants. Even though the commertial sector has declined we don´t see any vacancies.
Companies are "wintering". Sale Value (USD / m2) Lease Value (USD / m2 / month) USD 610 USD 3
Prime Retail Government has regulated leasing price since 2013. Leasing and sale transactions only are permitted in bolivar currency. Primary market with huge delay because lack of construction materials. Sigo mall at a 75% of construction started pre selling. Sale Value (USD / m2) Lease Value (USD / m2 / month) USD 4,000 USD 25
Prime Offices stock distribution by submarket
27% Libertador 26% Baruta 23% Chacao 21% sucre Centro Plaza, Torre C, Pent House 3% hatillo Caracas - Venezuela. +58 212 286 9580 www.NAIVenezuela.com Q MARKET REPORT '*3454&.&45&3 Latin America & The Caribbean
All actively managed to work wherever you do.
The world’s largest commercial real estate network.
Over 380 million square feet of property managed. All actively managed to work wherever you do.
717 Fifth Avenue,12th Floor New York, New York 10022 tel +1 212 405 2500 www.naiglobal.com