Bogotá Class-A Office Space Pricing Down 8-9% According To Cushman & Wakefield
According to a periodic study by real estate brokerage Cushman & Wakefield, Bogotá is experiencing a significant but not drastic decrease in its class-A office real estate market, clustered along the Colombian capital city’s northeast side, and the El Dorado commercial corridor on the west side of the city towards the international airport.
According to the firm’s Market Beat report, the average rental price per square meter decreased 3% in Q2 compared to Q1 overall, but with significant decreases of 8% in the Avenida Chile financial district and 9% in the Nogal / Andino sub-market further north towards the city’s international district.
“What we have identified is that given this situation, some owners have tried to improve the price conditions of some of their properties,” says Juan Carlos Delgado, country manager for Cushman & Wakefield.
Against the backdrop of the Coronavirus COVID-19 Pandemic, several new real estate projects are expected to come online in the 2nd half of 2020, including the Airport Business Hub, Connecta Gold 8 & 9, Sequoya, and the Atrium Tower.
Office inventories were up 16% than Q1, exacerbated by 10,230 square meters of new office space in the city’s high-end Chicó neighborhood, primarily in the FIC 92-11 building, left vacant by the COVID-19 lockdown.
“There are 215,000 m2 under construction, represented in nine projects, of which 36% is on Calle 100 and 30% in the (city) center, while in the Northwest , Santa Bárbara and Av. Chile sub-markets, no Class A project is under construction,” says Andrea Duque, manager of market research at Cushman & Wakefield. “What is interesting is that the Atrium Tower, Sequoya, the Gold 8 and 9 towers of Connecta and AB Hub, among others, are expected to be fully operational for the second semester.”
There is a further 543,212 m2 of leasable Class A office space in the development stage, of which 42% would be located in Salitre near the airport, and in the future this would add 230,000 m2 to the current inventory in this area, with another 16% or (89,429 m2) in the city’s northwest outside of the primary business districts, according to Duke.
On the above graphic provided by Cushman & Wakefield of Bogotá’s primary Class A office districts, North is to the left, and East is to the top of the image.