Q1 2012 | OFFICE
LIMA
RESEARCH & FORECAST REPORT
CURRENT OUTLOOK With vacancy levels of just over 1%, placements in the prime office market in Lima mainly involve product not yet in existence (in the design or construction stage). Thus, the buildings that entered the market during the first quarter of 2012, and contributed 23,400 sqm to the prime office buildings inventory, came with a 95% occupancy rate, as most of the marketing was carried out during the launching and construction process. In addition, the new buildings which entered the market during the first quarter 2012 are located in the East area (Omega and Gerens) and in Sanhattan (EC Arona).
INDICATORS PRIME MARKET Q4-2011
Q1-2012
VACANCY RATE NET ABSORPTION NEW SUPPLY RENTAL PRICE
INDICATORS B+ MARKET Q4-2011 VACANCY RATE NET ABSORPTION RENTAL PRICE
Q1-2012
Accordingly, the prime office market in Lima, at the end of Q1-2012, has a total inventory of 459,630 sqm, distributed in 48 buildings. The current availability in existing buildings is 7,680 sqm which is equivalent to 1.7% of total inventory and has decreased by 1% in respect of the vacancy at the end of 2011, which stood at 2.7%. The rental prices of the available supply in existing buildings have increased on average by US$ 1/sqm. Currently the average rental price, in prime buildings, stands at US$ 19.93/sqm/month, plus tax, while this value was US$ 18.92 / sqm in the previous period. In the quarter under review there was no offer to sell in existing buildings. These are list values or “asking prices”. With regard to the available supply in the design stage and/or under construction, the average rent value is US$ 21.45/sqm/
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month, with an average of US$ 21.52/ sqm/month for A+ buildings, and an average US$ 21.20/sqm/month for A buildings. The values found range from US$ 19.50 to US$ 22.00. The average selling price is US$ 2,226/sqm. These are list values or “asking prices”. There is currently 102,800 sqm of prime office space under construction in Lima, distributed in 8 buildings. It is estimated that these areas will enter the market during 2012 and 2013 (4 in Sanhattan, 3 in the East area and 1 in San Isidro Golf). Likewise, there are 6 prime building projects to be developed until 2014. These projects amount to 152,300 sqm and will be located in the East area (3 buildings) and in San Isidro Golf (3 buildings). In the B+ buildings segment, during Q12012, the Torre Alpha (East area) and the Dean Valdivia (Sanhattan) buildings entered the market, bringing the total inventory or stock of B+ office space to 186,614 sqm. The current vacancy in this sector is 7,494 sqm (4% of the stock), and the average rental price is US$ 17.8/sqm/ month.