Migração de Empresas

COMPANIES’ MIGR ATION

OFFICES MARKET STUDY LISBON 2014

COMPANIES’ MIGR ATION

Aguirre Newman has conducted a study into business mobility on the Lisbon office market for the fifth year in a row, this time for the years 2012 and 2013 in order to identify the office areas where companies are moving into, exhaustively detailing the take up over the last two years along with the office areas where these companies are coming from.

We analysed 370 lease transactions, quantified occupied office areas, zones of origin and destination, as well as the different companies' sectors of activity. We also identified the operations that involved an increase in area due to the companies’ structure growth and the operations that were first occupations such as start-ups.

We start this study with a description of Lisbon's Office Market based on information available from the Lisbon Prime Index (LPI) and the main conclusions for 2013 are shown below: • • • • • •

The office area take-up of 77,802 m2 was 24% down on the figures for 2012.

There were 186 office lease transactions.

Out of all these operations, 116 trades were regarding areas of less than 300 m2.

Seven office buildings were completed with 30,9382 m2 of new office space.

There was a total of 4,555,823 m2 of office space Another 6 office buildings are expected to be concluded in 2014 and 2015 raising the available space by another 51,750 m2

The Companies’ Migration Study involved 371 office lease operations with 185 in 2012 and 186 in 2013. The total area take-up was 179,777 m² (101,975 m² in 2012 and 77,802 m² in 2013).

The analysis was conducted taking into account three distinct perspectives: •

• •

By the number of transactions - office operations in each destination zone, taking into account each of the Origin Zones and office operations in the Destination Zones broken down by the contracted area (< 300 m²; 301 to 800 m²; 801 to 1,500 m²; 1,501 to 3,000 m²; 3,001 to 5,000 m² and > 5,000 m²), in each of the Origin Zones; By area leased - area of offices contracted in each Destination Zone, taking into account each of the Origin Zones.

By sector of activity - analysis of the office operations undertaken and the respective area contracted in each Destination Zone, for each of the 10 sectors of activity defined in the LPI (Consultants and Lawyers; State; Europe and Associations; Pharmaceuticals and Health; Not identified; Other Services; Consumer Products; Service Companies; Financial Services; TMTs & Utilities and Construction and Real Estate)

Comparing the results from 2012 and 2013 regarding the area take-up (See Migratory Map), we concluded the following: • • The information contained in this brochure is a summary of the Lisbon Companies’ Migration Study 2014. For further information or to receive the detailed study, please contact Aguirre Newman Portugal.

• •

The area contracted in Destination Zone 1 (Prime CBD) in 2013 stayed in line with 2012 regarding the same kind of origin. We noted, however, a greater origin from the same zone and from the Activity Start-Up. The area contracted in Destination Zone 2 (CBD) in 2013 stayed in line with 2012 regarding the same kind of origin. We noted , however, a greater origin from the Emerging Zone (zone 3) rather than the same zone.

These numbers reflect the move of Sonaecom company to the Picoas Plaza building.

The area contracted in Destination Zone 3 (Emerging Zone) in 2013 compared with 2012 shows a greater origin within the same zone and from the Western Corridor (zone 6) rather than Prime CBD (zone 1) and CBD (zone 2). These numbers reflect the move of Zon and CMVM to their respective head offices in 2012.

The area contracted in Destination Zone 4 (Secondary Zone) in 2013 compared with 2012 shows a greater origin within the same zone rather than Prime CBD (zone 1).

LISBON | 2014

•

•

•

The area contracted in Destination Zone 5 (“Parque das Nações”) in 2013 compared with 2012 reflects a greater origin of companies that move from outside Lisbon and net set-ups, rather than the growth / expansion of existing companies (Structural Growth).

These numbers reflect the move of EDP Soluções Comerciais to the Explorer building.

The area contracted in Destination Zone 6 (West Corridor) in 2013 stayed in line with 2012 regarding the same kind of origin. We noted, however, a greater origin from the same zone rather than from Zone 7. These numbers reflect the move of Novartis to the Poente building in Tagus Park.

The area contracted outside Destination Zones 1 to 6 (in 2013) compared with 2012 shows a greater origin from CBD (zone 2) and the Emerging Zone (zone 3) rather than Prime CBD (zone 1) and the same zone.

This study also let us come to the following conclusions about companies’ migration in the Lisbon office market between 2012 and 2013.

1.

Loyalty to the same Origin

We noticed that about 40% of the number of transactions (corresponding to 37% of the leased area) in 2012 and 37% of the number of transactions (corresponding to 31% of the leased area) in 2013 took place within the same Zone.

2.

Contiguity Zone 1 (Prime CBD) / Zone 2 (CBD) / Zone 3 (Emerging Zone)

We noticed a trend for contiguous zones in company moves in 2012 and 2013, namely concerning the Zones 1 (Prime CBD), 2 (CBD) and 3 (Emerging Zone). This may be explained by the fact that these three zones constitute a "geographic continuity" inside the city of Lisbon, where the levels of accessibility and available services are in some way comparable.

3.

Weight of the Activity Start-Up Origin

We noticed that about 15% of the number of transactions (corresponding to 6% of the leased area) in 2012 and 25% of the number of transactions (corresponding to 15 % of the leased area) in 2013 were set-ups.

4.

Number of transactions occurred in Destination Zones 1 to 6, with a similar Origin matrix in 2012 and 2013.

We conclude that the origin of the contracted area in each destination Zone 1 to 6 is similar in 2012 and 2013, except for the occupations of the ZON and CMVM head offices (in 2012) and the Explorer, Picoas Plaza and Poente - Tagus Park buildings (in 2013).

5.

Area requirements as decision factor in the move in 2013.

We conclude that 50% of the office lease transactions registered in 2013 correspond to an increase in the occupied area compared with the previous occupation, i.e. half the number of trades were moves from smaller offices to bigger offices and/or contracting additional area at the same address.

COMPANIES’ MIGR ATION

LISBON | 2014 E X P L A N AT O RY N O T E

N

ZONE 5 ZONE 7

8% 36% 42% 14% -

4.922

4.991

2% 6% 24% 4% 10% 25% 30% 1% -

15.423

15.754

AIRPORT

ZONE 3

2012

2013

27% 45% 7% 1% 13% 1% 3% 3% 0%

27% 27% 28% 9% 3% 4% 3% -

29.876

6.465

Av. B er

VASCO da GAMA BRIDGE

2ª C

UL IRC

ra Av. B

AR

For the identification of each transaction’s origin, eleven categories of sources were considered:

lim

ZONE 2 Av. M

2012

2013

8% 50% 4% 2% 6% 2% 7% 4% 16% 1%

15% 16% 53% 3% 4% 4% 4% 1% -

8.991

8.783

sil

Entrecampos rmadas rças A as Fo Av. d

utubro

epública Av. da R

eO Av. 5 d

Praça de Espanha

T OTAL sq. m.

Radial de Benfic a

are cha l

Gom

es d a

s da nido sU tado s E os Av. d

Cos ta

•Out of Lisbon – companies who moved from outside the Lisbon region to one of the Office Zones 1 - 7 •Activity Start-Up – Start-up companies whose first office is in the Destination Office Zone address for the transactions identified •Structural Growth - increase of leased area through growth of the company structure, corresponding to new premises in the Destination Office Zones 1-7

ica Amér

Av. João XXI

•No Information - cases where it was not possible to identify the transaction’s origin, due to insufficient information regarding the corporate name of the company and / or the correct address of the Destination Office Zone - residual weight of less than 1%

ZONE 4

-

ZONE 1 .A Av

2013

.A

L

TE R O

O

SC

TO TAL s q . m.

27.255

ESTRELA .I Av

n

te an

2012

2013

64% 10% 9% 16% -

1% 46% 3% 1% 21% 28% -

3.128

4.644

TEJO RIVER

Largo do Rato

o nt Sa

f

24.202

T OTA L sq. m.

5% 4% 18% 2% 32% 28% 3% 8% 0% 1%

9.909

BAIXA CHIADO

Av. de Ceuta

- CRIL

17

IC

2% 8% 2% 1% 70% 10% 0% 3% 0% 4%

15.433

de

2013

é oul de L

rda ibe

2012

e Av. Duqu

uiar R. Joaquim A. Ag

aL

ZONE 6

Marquês de Pombal

.d Av

CA A5

N

S AI

EIX

WESTERN CORRIDOR

Soare s

r

-SU

ia gu

43% 61% 30% 8% - CAMPOLIDE 1% 9% 2% 3% 2% 11% 23% 2% 4% AMOREIRAS 2% -

Saldanha

.A

2012

MONSANTO

R. Morai s

T O TAL sq. m.

7

Av. Almirante Reis

1

Av. In fante D. H enriq ue

N

1

The present study is based on the information provided by LPI index (Lisbon Prime Index), a Real Estate Index used to evaluate the Lisbon office market performance, regarding the volume of sq. m traded, the number of recorded transactions and the Destination Office Zones (in which the companies have leased new office spaces) in the years 2012 and 2013.

•Office Zones 1 - 7

BENFICA

IC 1 9 SI NTRA

PARQUE das NAÇÕES

Alameda dos Oceanos

65% 29% 1% 4% 1%

1% 3% 2% 34% 2% 28% 4% 25% -

Av. D. João II

2013

T OTAL sq. m.

T OTAL sq. m

S

2012

2013

enrique Av. Infante D. H

E

T OTAL sq. m.

W

2012

24 Julho Av.

CAIS do SODRÉ ALCÂNTARA

RESTELO Av. Índia

25 de ABRIL BRIDGE

PRIME CBD CBD EMERGING OFFICE ZONE SECONDARY OFFICE ZONE “PARQUE DAS NAÇÕES” WESTERN CORRIDOR ZONE 7 OUT of LISBON ACTIVITY START UP STRUCTURAL GROWTH NO INFORMATION

Office Zone 7, accordingly to LPI index, represents all offices located outside the main zones, which corresponds geographically to all the areas of Lisbon which are not within zones 1 - 6. In this sense, office transactions analyzed in this report as having occurred in Office Zone 7, correspond only to those registered by LPI index, and, we believe, are not representative of all transactions performed on the market outside zones 1-6.

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