During the third quarter of the year, offices in Buenos Aires registered a decrease of more than two percentage points in available spaces, compared to the same period of the previous year.
According to a report from CBRE Argentina, at the end of the third quarter, net absorption continues at positive values, accumulating 47,000 m2 so far this year, however this figure remains 40% below the historical annual average.
“The market has followed a positive trajectory since the beginning of 2024. Market indicators reflect a moderate reactivation, although still based on limited movements in specific transactions,” he said. Karina LongoResearch Manager at CBRE.
Office rental: the market is moving
In a positive turn, the released area was reduced by 37% compared to the previous quarter, while The rented area increased by 27%. All submarkets closed with positive net absorption values, except Microcentro, Puerto Madero and the Technological District, where the release of spaces still continues.
At the end of the third quarter of 2024, the existing Class A/A+ office inventory is 2.16 million m2 in CABA and Greater Buenos Aires. The main offer is located in the CBD – center and micro-center – with 1.28 million m2, followed by Zona Norte GBA with 470,000 m2 and Zona Norte CABA 440,000 m2.
Production for the next three years will be 167,687 m2, of which 73% is planned for 2024. It is estimated that 135,400 m2 will be completed by the fourth quarter of this year, with notable developments in Palermo (66,400 m2) and the corridor Panamericana (65,200 m2).
The demand was driven by the occupation of buildings in the Panamericana, Palermo and Catalinas-Plaza Roma corridorwhich together absorbed 73% of the total rented area.
Income with a downward trend
In the third quarter of 2024, rents maintain a moderate downward trend, standing at an average of US$22.4 per m2 per month, similar values to those of the same period in 2023.
By area, rental values in the North of CABA show a slight decrease of 4% compared to the previous quarter, motivated by a downward adjustment in Palermo, as a result of the greater available surface area since 2023, due to the incorporation of
new buildings to the market.
“In the Libertador CABA corridor“, the entry of new buildings of high construction quality and the expectation of entry of new surface have produced a continuous revaluation of the available surface during the last year,” highlighted Iván Jackson, Senior Consultant at CBRE.
Northern Corridor of CABA, with the highest prices
In terms of values, the differences between areas continue to widen, with the Northern corridor of CABA reaching the highest rental values in the market (with an average of US$27 per m2 per month).
For its part, the vacancy rate fell one percentage point compared to the previous quarter, reflecting a certain reactivation of the market. All areas show a decrease, except the Technological District where the release of surface continues, driving vacancy upwards, by 3.4 percentage points compared to the previous quarter.
Companies continue to make corporate moves motivated by rental values that have not yet begun to recover and the availability of high-quality surface.
Source: Ambito
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