LATIN AMERICA FIT-OUT COST GUIDE 2019/20 Edition
CONTENTS 2 WELCOME 3 TRADITIONAL VS. AGILE 4 LAYOUTS 12 PRICING ASSUMPTIONS 13 COMPARATIVE FIT COST PER COUNTRY 25 FIT-OUT COST INDEX | LATAM 27 TECHNOLOGY AND EVOLUTION OF OFFICE SPACE 31 FURNITURE 33 PROCUREMENT & PROGRAMME 35 WORKPLACE TRENDS AND COMMON PRACTICES
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LATAM FIT-OUT COST GUIDE
WELCOME
JUAN ESTEBAN ZABALA ALZATE Managing Director CBRE | Project Management Latin America & Caribbean
Latin America is an attractive region for growth. Our clients are constantly looking for better ways to expand their operations and, more specifically, build offices that guarantee their strong presence. This is why I’m pleased to present our latest LatAm Fit-Out Cost Guide as a tool to support them to make the best decisions for their projects in each market. No matter the budget or expectations, it's imperative for us to be able to answer one common question: "How much will my new office cost?" As the best partners in Project Management services, CBRE is uniquely qualified to provide comparable costs and metrics to uncover how to best allocate and maximize budget to fulfil their expectations.
characteristics, they should be able to use any of the specifications provided as reference. They are categorized broadly into three scenarios basic, medium and high-, each one associated with the corresponding budget that helps to make approximate comparisons between very diverse options. We want to present this tool as a reflection of CBRE Project Management’s capabilities, hoping that will help our team to get the most out of it when planning projects and understand the value of our role as a partner focused on its client’s benefits.
For this purpose, this CBRE Cost Guide for Corporate Interiors was created, ensuring we provide key data as a background in the planning state of every new project. This data gathering process involved a benchmark of our previous projects located by city. CBRE has produced a typical design for 1.000 square meters fit-out suitable for Latin America markets, and using our local teams to scale different scenarios in each market, gathering project cost information for identical spaces in each location. Though not all projects have the same MATTHEW EASTWOOD Head of EMEA Projects CBRE Global Workplace Solutions, EMEA
CBRE PROJECT MANAGEMENT
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TRADITIONAL VS. AGILE WORKPLACE The terms ‘traditional’ and TRADITIONAL AGILE ‘agile’ refer here to the design The traditional layout is characterised by the The agile layout is characterised by a wide range of office interiors, usually space having a large number of private offices, of work settings which support ‘activity based the size, location and specification of which are working’. This is a shared working environment reflecting the function and determined by the occupier’s status within the with few, if any, desks or rooms allocated to culture of the occupying organisation. Executive assistants typically sit individuals. Personal lockers are provided in organisation. There is, of directly outside their managers’ offices, while the place of under-desk pedestals. The space is course, a broad spectrum of rest of the workforce is accommodated either in designed to foster high-levels of interaction and workplace models in existence open plan or group rooms with no desk sharing. knowledge sharing by providing a wide choice Desks tend to be large and often incorporate of meeting spaces, both open and enclosed. across the region, but these can furniture screens to provide an element of privacy. A number of small rooms and semi-enclosed be distilled broadly into these There is usually a high dependency on paper spaces support the need for individual focused storage in these environments and little in the way work. The emphasis of the agile workplace is very two types. of supplementary workspaces, apart from a suite of predominantly large meeting rooms.
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LATAM FIT-OUT COST GUIDE
much on the user experience and the wellness and wellbeing of employees. The space itself is designed to be flexible, adaptable and dynamic.
LAYOUTS This guide presents general arrangements of an office floor plate of 1,000 sq m (10,764 sq ft) usable area to suit both traditional and agile ways of working. AREA SCHEDULE
The workplace settings in the agile layout reflect the collaborative and flexible work environment, whereas the traditional layout focuses more on private work settings.
It is likely many businesses will choose a hybrid of the two working styles depending on their needs and operations. The three specification levels of basic, medium and high, as outlined in the following pages, are compatible with either layout.
TRADITIONAL
Traditional Space designation
Area net (sq m)
Work settings
Open plan desks
299
47
Desks in shared room
85
12
Private offices
133
7
Meeting rooms
146
7
Informal meeting spaces
18
2
Tea point
14
Support space
51
Reception
42
Circulation space
212
Total
1,000
75
AGILE
Agile Space designation
Area net (sq m)
Work settings
365
70
Study pods (open plan)
70
14
Meeting rooms
110
8
Quiet rooms
24
4
Informal meeting spaces
44
4
Coffee lounge
60
5
Recreation room
10
Support space
35
Open plan desks/benches
Reception/lounge
70
Circulation space
212
Total
1,000
105
CBRE PROJECT MANAGEMENT
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BASIC SPECIFICATION ASSUMPTIONS Internal partitions • Predominantly medium acoustic rated plasterboard partitions (single-skin construction) • Single glazed partitions to meeting rooms with solid timber door sets • Fixed plasterboard wall instead of movable walls Wall finish • Painted dry lined partitions throughout • Painted feature walls to lift lobby and reception Floor finish • Medium grade carpet tiles to open plan offices, lift lobby, reception, collaboration and client facing areas • Vinyl floor finish to coffee lounge/tea points Ceiling finish • Re-use existing ceilings • Plasterboard margins to meeting rooms Fittings, furniture and equipment • Proprietary joinery with laminate finish to copy/print areas and tea points • Non-bespoke reception desk Mechanical • Minimal modifications to the existing space heating/cooling • Minimal modifications to the existing air treatment Electrical • Existing lighting to be re-used and reconfigured to suit new layout • New pendant luminaires above reception desk
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LATAM FIT-OUT COST GUIDE
WORKPOINTS
RECEPTION
COFFEE LOUNGE
MEETING ROOM
COLLABORATION AREA
CBRE PROJECT MANAGEMENT
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MEDIUM SPECIFICATION ASSUMPTIONS Internal partitions • Increased use of glazed partitions instead of plasterboard • Acoustic-rated single glazed partitions to meeting rooms with framed glazed door sets • Acoustic treatment to partitions (double-skin construction with acoustic infills) • Hardwood veneer and medium acoustic rated manually operated movable walls Wall finish • Painted dry lined partitions throughout • Painted feature wall to client facing meeting rooms • Back painted glass feature walls to lift lobby and reception • Floor to ceiling photo/graphics wallpaper applied in four locations Floor finish • Medium-grade carpet tiles to open plan offices, collaboration and client facing areas • Ceramic tiles to lift lobby, reception and coffee lounge/tea points Ceiling finish • New feature plasterboard ceilings to reception, lift lobby, client-facing areas and coffee lounge • Plasterboard margins to meeting rooms Fittings, furniture and equipment • Resin top finish to tea points with high gloss laminate cupboards • Proprietary laminate joinery for copy/print joinery • Bespoke hardwood and glass reception desk Mechanical • Moderate modifications to the existing space heating/cooling and air treatment Electrical • Existing lighting to be re-used and reconfigured to suit new layout, supplemented by new luminaires to collaboration spaces • Specialist lighting to reception, client facing and coffee lounge spaces • Modifications to existing BMS and lighting controls
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LATAM FIT-OUT COST GUIDE
WORKPOINTS
RECEPTION
COFFEE LOUNGE
MEETING ROOM
COLLABORATION AREA
CBRE PROJECT MANAGEMENT
8
HIGH SPECIFICATION ASSUMPTIONS Internal partitions • Increased use of glazed partitions instead of plasterboard • High acoustic rated double glazed partitions to meeting rooms with framed glazed door sets • Acoustic treatment to partitions (slab-to-slab construction or acoustic infills above ceiling and within floor void) • Hardwood veneer and high acoustic rated semi-automatic movable walls Wall finish • Painted dry lined partitions throughout • Applied finishes to feature walls in client meeting rooms • Stone feature walls to lift lobby • Video wall to reception • Floor to ceiling photo/graphics wallpaper applied in four locations Floor finish • High grade carpet tiles to open plan offices, collaboration and client facing areas • Porcelain tiles or stone to lift lobby and reception • Hardwood flooring to coffee lounge/tea points Ceiling finish • New feature timber raft ceiling to reception and client facing meeting rooms • New feature plasterboard ceilings to lift lobby, internal meeting rooms and coffee lounge with plasterboard margins • New metal plank ceiling system throughout office space Fittings, furniture and equipment • Resin top finish to tea point with high gloss laminate cupboards • Specialist joinery for copy/print areas • Bespoke joinery construction (encasement) for video wall to reception • Booth seating (adjacent to reception) built as joinery item rather than as furniture solution • Bespoke illuminated glass and stainless steel reception desk with integrated data and power Mechanical • Moderate modifications to the existing space heating, cooling and air treatment • Local temperature control /adjustment in meeting rooms and booths Electrical • Existing lighting re-used and part new lighting to office areas • High-end specialist lighting to reception, client facing, collaborative and coffee lounge spaces • Modifications to BMS and lighting controls with scene setting 9
LATAM FIT-OUT COST GUIDE
www.klstudio.mk contact@klstudio.mk
WORKPOINTS
RECEPTION
COFFEE LOUNGE
MEETING ROOM
COLLABORATION AREA
CBRE PROJECT MANAGEMENT
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LATAM FIT-OUT COST GUIDE
PRICING ASSUMPTIONS A detailed quantity measure has been carried out using the traditional and agile layouts for the three levels of specifications (basic, medium and high). These layouts have been priced locally within each market to capture the costing information along with typical procurement and programme data. Prices for each location identified in this guide are based on the following assumptions: • The building is A class in Shell Space conditions and is located in the central business district. • The base date for the pricing information in this document is August 2019, and reflects both the inflation rates and the exchange rates corresponding to each country at that moment in time • Premises are in good condition and have all necessary infrastructure (suitable baseline requirements of HVAC and power supply, etc) • This is a generic design which does not take into account cultural differences and country specific space planning considerations or local regulations
CBRE Barcelona Office
• This guide does not consider shape variations of the building which may impact fit factors • FF&E is new, no reuse considered • Ordinary timetable for construction works has been contemplated • If the scope of your requirements varies significantly from the design information included in this report, please do not hesitate to contact the Project Management team locally
CBRE PROJECT MANAGEMENT
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COMPARATIVE FIT COST PER COUNTRY ARGENTINA TRADITIONAL FIT-OUT COST GUIDE
BUENOS AIRES & CORDOBA
FEATURES
COST BREAKDOWN
CORDOBA
BASIC
MEDIUM
HIGH
USD PER SQM
USD PER SQM
USD PER SQM
SOFT COST
75
127
127
209
209
>
HARD COST
586
734
734
1,300
1,300
>
FURNITURE
81
160
160
658
658
>
TOTAL FIT OUT COST
742
1,021
1,021
2,167
2,167
>
BASIC
MEDIUM
HIGH
SOFT COST
7%
12%
10%
HARD COST
57%
72%
60%
FURNITURE
8%
16%
30%
TOTAL FIT OUT COST
73%
100%
100%
AGILE FIT-OUT COST GUIDE FEATURES
COST BREAKDOWN
BUENOS AIRES
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LATAM FIT-OUT COST GUIDE
BASIC
MEDIUM
HIGH
USD PER SQM
USD PER SQM
USD PER SQM
SOFT COST
79
134
134
220
220
>
HARD COST
617
773
773
1,369
1,369
>
FURNITURE
85
168
168
693
693
>
TOTAL FIT OUT COST
782
1075
1,075
2,282
2,282
>
BASIC
MEDIUM
HIGH
SOFT COST
7%
6%
10%
HARD COST
57%
34%
60%
FURNITURE
8%
7%
30%
TOTAL FIT OUT COST
73%
47%
100%
BRAZIL TRADITIONAL FIT-OUT COST GUIDE
SÃO PAULO, RIO DE JANEIRO, CURITIBA & BELO HORIZONTE
FEATURES
COST BREAKDOWN
BELO HORIZONTE
BASIC
MEDIUM
HIGH
USD PER SQM
USD PER SQM
USD PER SQM
SOFT COST
55
85
85
170
>
170
HARD COST
535
625
625
1,430
>
1,430
FURNITURE
160
255
255
290
>
290
TOTAL FIT OUT COST
750
965
965
1,890
>
1,890
BASIC
MEDIUM
HIGH
SOFT COST
6%
9%
9%
HARD COST
55%
65%
76%
FURNITURE
17%
26%
15%
TOTAL FIT OUT COST
78%
100%
100%
AGILE FIT-OUT COST GUIDE FEATURES
SÃO PAULO
RIO DE JANEIRO
COST BREAKDOWN
CURITIBA
BASIC
MEDIUM
HIGH
USD PER SQM
USD PER SQM
USD PER SQM
SOFT COST
55
85
85
180
>
180
HARD COST
520
570
570
1,360
>
1,360
FURNITURE
210
320
320
475
>
475
TOTAL FIT OUT COST
785
975
975
2,015
>
2,015
BASIC
MEDIUM
HIGH
SOFT COST
6%
9%
9%
HARD COST
53%
58%
67%
FURNITURE
22%
33%
24%
TOTAL FIT OUT COST
100%
100%
100%
CBRE PROJECT MANAGEMENT
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CHILE SANTIAGO
TRADITIONAL FIT-OUT COST GUIDE FEATURES
COST BREAKDOWN
SANTIAGO
BASIC
MEDIUM
HIGH
USD PER SQM
USD PER SQM
USD PER SQM
SOFT COST
85
120
120
220
>
220
HARD COST
490
535
535
770
>
770
FURNITURE
175
215
215
335
>
335
TOTAL FIT OUT COST
750
870
870
1,325
>
1,325
BASIC
MEDIUM
HIGH
SOFT COST
11%
14%
17%
HARD COST
65%
61%
58%
FURNITURE
23%
25%
25%
TOTAL FIT OUT COST
100%
100%
100%
AGILE FIT-OUT COST GUIDE
COST BREAKDOWN
FEATURES
15
LATAM FIT-OUT COST GUIDE
BASIC
MEDIUM
HIGH
USD PER SQM
USD PER SQM
USD PER SQM
SOFT COST
90
125
125
220
>
220
HARD COST
470
515
515
620
>
620
FURNITURE
235
265
265
465
>
465
TOTAL FIT OUT COST
795
905
905
1,305
>
1,305
BASIC
MEDIUM
HIGH
SOFT COST
11%
14%
17%
HARD COST
59%
57%
48%
FURNITURE
30%
29%
36%
TOTAL FIT OUT COST
100%
100%
100%
COLOMBIA BOGOTA & MEDELLIN
TRADITIONAL FIT-OUT COST GUIDE FEATURES
COST BREAKDOWN
MEDELLIN
BASIC
MEDIUM
HIGH
USD PER SQM
USD PER SQM
USD PER SQM
SOFT COST
115
150
150
195
>
195
HARD COST
390
495
495
810
>
810
FURNITURE
125
190
190
225
>
225
TOTAL FIT OUT COST
630
835
835
1,230
>
1,230
BASIC
MEDIUM
HIGH
SOFT COST
18%
18%
16%
HARD COST
62%
59%
66%
FURNITURE
20%
23%
18%
TOTAL FIT OUT COST
100%
100%
100%
AGILE FIT-OUT COST GUIDE FEATURES
COST BREAKDOWN
BOGOTA
BASIC
MEDIUM
HIGH
USD PER SQM
USD PER SQM
USD PER SQM
SOFT COST
120
150
150
210
>
210
HARD COST
375
470
470
770
>
770
FURNITURE
175
225
225
335
>
335
TOTAL FIT OUT COST
670
845
845
1,315
>
1,315
BASIC
MEDIUM
HIGH
SOFT COST
18%
18%
16%
HARD COST
56%
55%
59%
FURNITURE
26%
27%
25%
TOTAL FIT OUT COST
100%
100%
100%
CBRE PROJECT MANAGEMENT
16
COSTA RICA SAN JOSE
TRADITIONAL FIT-OUT COST GUIDE FEATURES
COST BREAKDOWN
SAN JOSE
BASIC
MEDIUM
HIGH
USD PER SQM
USD PER SQM
USD PER SQM
SOFT COST
90
120
100
120
>
150
HARD COST
410
550
570
650
>
800
FURNITURE
150
180
190
230
>
250
TOTAL FIT OUT COST
650
850
860
1,000
>
1,200
BASIC
MEDIUM
HIGH
SOFT COST
14%
12%
13%
HARD COST
65%
65%
67%
FURNITURE
21%
23%
21%
TOTAL FIT OUT COST
100%
100%
100%
AGILE FIT-OUT COST GUIDE
COST BREAKDOWN
FEATURES
17
LATAM FIT-OUT COST GUIDE
BASIC
MEDIUM
HIGH
USD PER SQM
USD PER SQM
USD PER SQM
SOFT COST
95
126
105
126
>
158
HARD COST
431
578
599
683
>
840
FURNITURE
158
189
200
242
>
263
TOTAL FIT OUT COST
683
893
903
1,050
>
1,260
BASIC
MEDIUM
HIGH
SOFT COST
14%
12%
13%
HARD COST
65%
65%
67%
FURNITURE
21%
23%
21%
TOTAL FIT OUT COST
100%
100%
100%
MEXICO MEXICO CITY, GUADALAJARA, MONTERREY & QUERETARO
TRADITIONAL FIT-OUT COST GUIDE FEATURES
COST BREAKDOWN
MONTERREY
BASIC
MEDIUM
HIGH
USD PER SQM
USD PER SQM
USD PER SQM
SOFT COST
102
121
122
182
183
>
HARD COST
445
558
559
840
841
>
FURNITURE
182
223
224
286
287
>
TOTAL FIT OUT COST
729
902
905
1,309
1,309
-
BASIC
MEDIUM
HIGH
SOFT COST
14%
13%
14%
HARD COST
62%
62%
64%
FURNITURE
25%
25%
22%
TOTAL FIT OUT COST
100%
100%
100%
AGILE FIT-OUT COST GUIDE GUADALAJARA
FEATURES
QUERETARO
COST BREAKDOWN
MEXICO CITY
BASIC
MEDIUM
HIGH
USD PER SQM
USD PER SQM
USD PER SQM
SOFT COST
102
132
133
203
204
>
HARD COST
445
564
565
852
853
>
FURNITURE
182
185
186
297
298
>
TOTAL FIT OUT COST
729
882
885
1,352
1,355
>
BASIC
MEDIUM
HIGH
SOFT COST
14%
15%
15%
HARD COST
61%
64%
63%
FURNITURE
25%
21%
22%
TOTAL FIT OUT COST
100%
100%
100%
CBRE PROJECT MANAGEMENT
18
GUATEMALA GUATEMALA
TRADITIONAL FIT-OUT COST GUIDE FEATURES
COST BREAKDOWN
GUATEMALA
BASIC
MEDIUM
HIGH
USD PER SQM
USD PER SQM
USD PER SQM
SOFT COST
66
99
100
124
125
225
HARD COST
650
849
850
1,349
1,350
2,350
FURNITURE
150
199
200
349
350
850
TOTAL FIT OUT COST
866
1,147
1,150
1,822
1,825
3,425
BASIC
MEDIUM
HIGH
SOFT COST
82
112
175
HARD COST
750
1,100
1,850
FURNITURE
175
275
600
1,006
1,486
2,625
TOTAL FIT OUT COST
AGILE FIT-OUT COST GUIDE
COST BREAKDOWN
FEATURES
19
LATAM FIT-OUT COST GUIDE
BASIC
MEDIUM
HIGH
USD PER SQM
USD PER SQM
USD PER SQM
SOFT COST
66
99
100
124
125
225
HARD COST
450
584
585
749
750
950
FURNITURE
125
184
185
199
200
450
TOTAL FIT OUT COST
641
867
870
1,072
1,075
1,625
BASIC
MEDIUM
HIGH
SOFT COST
82
112
175
HARD COST
517
667
850
FURNITURE
155
192
325
TOTAL FIT OUT COST
754
971
1,350
PANAMA PANAMA
TRADITIONAL FIT-OUT COST GUIDE FEATURES
PANAMA
MEDIUM
HIGH
USD PER SQM
USD PER SQM
USD PER SQM
SOFT COST
90
120
120
165
>
165
HARD COST
710
900
900
1,285
>
1,285
FURNITURE
200
280
280
400
>
400
1,000
1,300
1,300
1,850
>
1,850
TOTAL FIT OUT COST
COST BREAKDOWN
BASIC
BASIC
MEDIUM
HIGH
SOFT COST
9%
9%
9%
HARD COST
71%
69%
69%
FURNITURE
20%
22%
22%
TOTAL FIT OUT COST
100%
100%
100%
AGILE FIT-OUT COST GUIDE FEATURES
MEDIUM
HIGH
USD PER SQM
USD PER SQM
USD PER SQM
SOFT COST
95
125
125
170
>
170
HARD COST
680
850
850
1,225
>
1,225
FURNITURE
275
345
345
550
>
550
1,050
1,320
1,320
1,945
>
1,945
TOTAL FIT OUT COST
COST BREAKDOWN
BASIC
BASIC
MEDIUM
HIGH
SOFT COST
9%
9%
9%
HARD COST
65%
64%
63%
FURNITURE
26%
26%
28%
TOTAL FIT OUT COST
100%
100%
100%
CBRE PROJECT MANAGEMENT
20
PERU LIMA
TRADITIONAL FIT-OUT COST GUIDE FEATURES
COST BREAKDOWN
LIMA
BASIC
MEDIUM
HIGH
USD PER SQM
USD PER SQM
USD PER SQM
SOFT COST
25
50
45
130
>
135
HARD COST
400
420
570
480
>
600
FURNITURE
80
65
170
100
>
205
TOTAL FIT OUT COST
505
535
785
710
>
940
BASIC
MEDIUM
HIGH
SOFT COST
9%
18%
14%
HARD COST
79%
68%
64%
FURNITURE
12%
14%
22%
TOTAL FIT OUT COST
100%
100%
100%
AGILE FIT-OUT COST GUIDE
COST BREAKDOWN
FEATURES
21
LATAM FIT-OUT COST GUIDE
BASIC
MEDIUM
HIGH
USD PER SQM
USD PER SQM
USD PER SQM
SOFT COST
26
53
47
137
>
142
HARD COST
420
441
599
504
>
630
FURNITURE
84
68
179
105
>
215
TOTAL FIT OUT COST
530
562
824
746
>
987
BASIC
MEDIUM
HIGH
SOFT COST
9%
6%
14%
HARD COST
79%
73%
64%
FURNITURE
12%
22%
22%
TOTAL FIT OUT COST
100%
100%
100%
TRINIDAD TRADITIONAL FIT-OUT COST GUIDE
PUERTO ESPAÑA
FEATURES
PUERTO ESPAÑA
MEDIUM
HIGH
USD PER SQM
USD PER SQM
USD PER SQM
SOFT COST
161
211
211
250
>
250
HARD COST
1,300
1,700
1,700
2,000
>
2,000
FURNITURE
150
200
200
250
>
250
1,611
2,111
2,111
2,500
>
2,500
TOTAL FIT OUT COST
COST BREAKDOWN
BASIC
BASIC
MEDIUM
HIGH
SOFT COST
10%
10%
10%
HARD COST
81%
81%
81%
FURNITURE
9%
9%
9%
100%
100%
100%
TOTAL FIT OUT COST
AGILE FIT-OUT COST GUIDE FEATURES
MEDIUM
HIGH
USD PER SQM
USD PER SQM
USD PER SQM
SOFT COST
162
213
213
253
>
253
HARD COST
1,235
1,615
1,615
1,900
>
1,900
FURNITURE
225
300
300
375
>
375
1,622
2,128
2,128
2,528
>
2,528
TOTAL FIT OUT COST
COST BREAKDOWN
BASIC
BASIC
MEDIUM
HIGH
SOFT COST
10%
10%
10%
HARD COST
76%
76%
76%
FURNITURE
14%
14%
14%
TOTAL FIT OUT COST
100%
100%
100%
CBRE PROJECT MANAGEMENT
22
BARBADOS BRIDGETOWN
TRADITIONAL FIT-OUT COST GUIDE FEATURES
BRIDGETOWN
MEDIUM
HIGH
USD PER SQM
USD PER SQM
USD PER SQM
SOFT COST
178
228
228
278
>
278
HARD COST
1,400
1,800
1,800
2,200
>
2,200
FURNITURE
200
250
250
300
>
300
1,778
2,278
2,278
2,778
>
2,778
TOTAL FIT OUT COST
COST BREAKDOWN
BASIC
BASIC
MEDIUM
HIGH
SOFT COST
10%
10%
10%
HARD COST
79%
79%
79%
FURNITURE
11%
11%
11%
TOTAL FIT OUT COST
100%
100%
100%
AGILE FIT-OUT COST GUIDE FEATURES
COST BREAKDOWN
LATAM FIT-OUT COST GUIDE
MEDIUM
HIGH
USD PER SQM
USD PER SQM
USD PER SQM
SOFT COST
181
232
232
282
>
282
HARD COST
1,330
1,710
1,710
2,090
>
2,090
FURNITURE
300
375
375
450
>
450
1,811
2,317
2,317
2,822
>
2,822
TOTAL FIT OUT COST
23
BASIC
BASIC
MEDIUM
HIGH
SOFT COST
10%
10%
10%
HARD COST
73%
74%
74%
FURNITURE
17%
16%
16%
TOTAL FIT OUT COST
100%
100%
100%
CAYMAN TRADITIONAL FIT-OUT COST GUIDE
GEORGE TOWN
FEATURES
GEORGE TOWN
MEDIUM
HIGH
USD PER SQM
USD PER SQM
USD PER SQM
SOFT COST
222
272
272
311
>
311
HARD COST
1,800
2,200
2,200
2,500
>
2,500
FURNITURE
200
250
250
300
>
300
2,222
2,722
2,722
3,111
>
3,111
TOTAL FIT OUT COST
COST BREAKDOWN
BASIC
BASIC
MEDIUM
HIGH
SOFT COST
10%
10%
10%
HARD COST
81%
81%
81%
FURNITURE
9%
9%
9%
100%
100%
100%
TOTAL FIT OUT COST
AGILE FIT-OUT COST GUIDE FEATURES
MEDIUM
HIGH
USD PER SQM
USD PER SQM
USD PER SQM
SOFT COST
223
273
273
313
>
313
HARD COST
1,710
2,090
2,090
2,375
>
2,375
FURNITURE
300
375
375
450
>
450
2,233
2,738
2,738
3,138
>
3,138
TOTAL FIT OUT COST
COST BREAKDOWN
BASIC
BASIC
MEDIUM
HIGH
SOFT COST
10%
10%
10%
HARD COST
77%
76%
76%
FURNITURE
13%
14%
14%
TOTAL FIT OUT COST
100%
100%
100%
CBRE PROJECT MANAGEMENT
24
Fran
1
kfur t
1.98
2.50
0.9
1.9
2
Sea
2
8
1.50
ic o C i ty
1.80
1.00
Mex
ttl e
1.8
2.00
0.9
mb ai
San Fra
o
Pari
Dall as
1.18
1.00
CBRE leads the market in benchmarking the trends amongst progressive corporations who have recognised Space-as-a-Service as a requirement to Buenos Aires achieve the goals of corporate strategies. A key trend identified is the larger portions of capital expenditure demanded for technology to support the development of smart offices. The modern workforce expects an po re Singa equally modern office to optimise productivity. This is fast becoming a focus for companies to attract and retain talent.
0.50
1.68 1.6 2
4 1.3
Syd
i gha
1.3
nta
Paulo
o ng
SĂŁ o
gK
Madrid
Hon
1.43
1.57
on
1.38
Lond
LATAM FIT-OUT COST GUIDE
1.36
Dublin
25
1
1.6
5
Atla
n Sh a
1.63
1.24
The Global Index presented is a guide only. For budget estimates on specific projects, please contact the CBRE Project Management Division lead from the relevant market who can provide you with relevant and accurate information.
To kyo
0
1.20
We will continue to discuss technology & the evolution of office space and its impact in a separate column of the cost guide.
s
1.74
The risks associated with uncertainly can be somewhat mitigated in corporate real estate investments through robust benchmarking which includes 7 categories of capital cost in 23 key global markets.
Mu
2.09
0.90
otĂĄ Bo g
The tariffs that countries slap on each other are further compounded by escalating unpredictability in foreign exchange. The result of the uncertainty has driven what has been an experiment in the use of co-working space to a legitimate corporate real estate strategy.
New York
Santiag
Trade wars have become synonymous with uncertainty. What started off between the US and China has now escalated to include Europe. In what was unthinkable 2 years ago, Manufacturing industries are starting to leave China in what could create a domino effect on other industries.
nc is co
FIT-OUT COST INDEX | LATAM
ne y
Chicago
Jo han n
es bur g
CBRE PROJECT MANAGEMENT
26
TECHNOLOGY AND THE EVOLUTION OF OFFICE SPACE A digitally enabled office is no longer the domain of tech giants, but of businesses across all sectors. Companies must accept that what was once optional, is now inevitable. Office space is now a service, made to fit business strategies where productivity is synonymous with technology enabled collaboration, and employees demand modern conveniences and seamless technology integration so they can focus on the tasks at hand. Driving this technology investment shift is the demand for a unified visual display and communication platform. To collaborate, people need places to connect. However this is a fundamental need and employees are demanding more from their workplace; they expect high-speed Wi-Fi, wireless charging, personalisation, online room booking, environmental controls and so on, hence companies evolving to deliver these in order to attract and retain talent. As a result, 70% of companies plan to increase investment in real estate technology within the next three years, and 30% see smart building technology as a factor in choosing a building. Investment in workplace technology was growing steadily for several years until, unexpectedly, in 2018 we saw a doubling of spend in workplace technology. This can be attributed to a combination of increased adoption and implementation of workplace strategy, and environments being designed for collaboration. The technology to create a more efficient workplace is now in our hands, or more accurately, in our smartphones. To achieve
27
LATAM FIT-OUT COST GUIDE
corporate goals, company strategies have to drive the technology which should be designed and oriented to support how we work, how we connect with colleagues, and how to make routine and administrative actions simple, allowing greater productivity. The step-change of unified communication and display technology in commercial offices is just the beginning. Technology enabled devices make it possible to collect data from all aspects of the corporate office, including BMS, security, lighting, meeting rooms and furniture to name a few. All are sources of data; however, it is not until information is analysed and used properly that it benefits people and the business. In smart offices, data can and is being collected to help create a more efficient workplaces and reduce carbon footprints. Strategies to achieve business goals are being rewritten. The goals of productivity and profitability remain; however, the journey and the platform to achieve these are changing. Companies are asking: What does "smart" building mean for me? What does "smart" office mean for my business? What is our "smart" vision and how does this support our corporate strategies? Answering these questions and developing a technology brief that supports corporate strategies will provide the basis for developing “space as a service” and the journey towards developing a suitable smart office.
The commercial office industry is recognising technology as a core requirement of an attractive, collaborative work environment. Due to the criticality of integrated technologies and smart workplaces, there's an increasing demand for project management teams with the right technical skillset to get the brief, budget, design and implementation right. This is important when a “result-oriented workforce” demands a superior knowledge-based work environments that improve productivity and allow connection, collaboration and inspiration. These effects also reach landlords who want to have desirable assets. Demands have evolved from sustainable and green buildings to providing infrastructure to accommodate smart offices. We are transitioning to a new office experience that demands an evolution of the standard commercial building and transformation of our physical space.
TRADITIONAL AV SPECIFICATION DESCRIPTION Space type
Basic
Medium
AGILE AV SPECIFICATION DESCRIPTION High
Space type
Basic
Medium
High
Reception area
Company information or brand specific content displayed on LED signage screen
Multiple LED screens displaying specifically developed content
Video wall or bespoke AV installation providing bespoke or real-time information specific to client brand
Reception area
Company information or brand specific content displayed on LED signage screen
Multiple LED screens displaying specifically developed content
Video wall or bespoke AV installation providing bespoke, interactive or realtime information specific to client brand
Desk area
No AV
TV screen fed direct from building TV distribution
TV/signage screen fed from client IPTV or signage system
Desk area
No AV
TV screen fed direct from building TV distribution
Lift lobby
No AV
TV screen fed direct from building TV distribution
TV/signage screen fed from client IPTV or signage system
TV/signage screen fed from client IPTV or signage system
Lift lobby
No AV
Large meeting rooms
Single LED screen with wired presentation facilities and a desktop conference phone
Dual LED screen with the addition of wireless presentation system, touch screen controls and built in audio conferencing with ceiling speakers
As per the medium specification with the addition of HD video conferencing and interactive collaboration tools such as touch screen LED screens
TV screen fed direct from building TV distribution
TV/signage screen fed from client IPTV or signage system
Large meeting rooms
Single LED screen with wired presentation facilities and a desktop conference phone
Single LED screen with wired presentation facilities and an IP conference phone
Single LED screen with wireless presentation facilities and an IP conference phone
Interactive touch screen with wireless presentation and IP conference phone and VC camera
Dual LED screen with the addition of wireless presentation system, touch screen controls and built in audio conferencing with ceiling speakers
As per the medium specification with the addition of HD video conferencing and interactive collaboration tools such as interactive touch screen LED screens
Medium meeting room
Small meeting rooms
No AV
IP desk phone
IP desk phone and VC camera
Single LED screen with wired presentation facilities and an IP conference phone
Single LED screen with wireless presentation facilities and an IP conference phone
Interactive screen with wireless presentation and IP conference phone and VC camera
Comms room
Centralised AV equipment
Centralised AV equipment
Centralised AV equipment
Small meeting rooms
No AV
IP desk phone
IP desk Phone and VC camera
Informal meeting spaces
No AV
Content sharing screens
Content sharing and collaboration screens
Alternative workspaces
Large LED screen with wireless presentation wipe clean whiteboard
Wireless presentation to large LED Screen, video and audio conference enabled
Interactive whiteboard, LED screen and collaboration facilities with immersive features
Comms room
Centralised AV equipment
Centralised AV equipment
Centralised AV equipment
Medium meeting room
These technology benchmarks are in line with the specifications outlined in this guide for a 1,000 sq m fit-out. Please note that import taxes may be applicable and actual client requirements can vary and may sit outside of these benchmark ranges depending on specific technology requirements and size of fit-out.
CBRE PROJECT MANAGEMENT
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29
LATAM FIT-OUT COST GUIDE
SECURITY Tenant security systems typically consist of two main elements, electronic access control and CCTV.
opportunities to streamline system administration and enhance the visitor management process.
These systems monitor the point of entry into the tenant’s office demise and to secure areas such as the IT comms room, high value storage or the HR office. In a multi tenanted building the landlord will have already installed security systems managing access and monitoring for the main building entrances and common areas. The security system can operate standalone within the tenant demise or be interfaced with a compatible landlord system, which provides
Both CCTV and access control systems will typically be Internet Protocol (IP) based, meaning they connect over the structured cabling and network infrastructure. This deployment methodology removes the requirement for multiple types of cabling. This provides opportunities to interface the security systems with any other IP based systems to create workflows, collate data and cause and effect based outcomes which is the basis for starting to create a ‘Smart Building’.
The management interface for security systems will be accessible over the network or consolidated to view alongside other building systems.
IT Tenants’ IT installations typically include structured cabling, and wired and wireless network equipment. Monitors and desk phones are considered user’s equipment and typically don’t sit within the fit-out budget; however, the placement of these components is essential to any workplace strategy. Clients’ existing equipment may not enable changes in the working styles and practices, which are often the driving force behind office relocations, so proper advice should be taken on how to engage with the latest technology early in the planning stages. Wi-Fi technology is sufficiently reliable as a primary method of connectivity for user devices within an agile working environment, but there will always be a requirement for a structured cabling system. This will typically be installed
within the raised floor and ceiling void to provide connection for fixed IT, AV, security and any other IP based products. The growth in integrated and smart buildings is motivating an increase in IP devices that are network connected, this will need to be given due consideration when producing technology budgets. Although additional IT infrastructure is required to support these systems, this is offset by savings in other packages. As more systems become IP-based, the reliance on connectivity to the Local Area Network (LAN) means that new switches and firewalls are typically procured rather than relocated during an office move. One of the drivers for this is that contractors are reliant on network connectivity to commission IP-based building systems.
Wireless access points installed within or beneath the ceiling void will provide users with connectivity to the Internet and the ability to work anywhere within the office. Full Wi-Fi coverage within the office is a key requirement for agile and traditional office working environments. It is critical that IT budgeting is considered early in the project and with a holistic view in order to achieve the savings that smart building technology, the Internet of Things (IoT) and systems convergence can offer.
CBRE PROJECT MANAGEMENT
30
FURNITURE As employers grapple with rising healthcare costs an area historically often overlooked as contributing to employee health and well-being is the workplace. Aside from lunchtime yoga and salads on the cafeteria menu, the approach to well-being at work often fails to look at the bigger picture and address the underlying issues that contribute to poor health: a sedentary lifestyle and work-related stress.
SO HOW CAN A BUILDING MAKE PEOPLE HEALTHIER? NUDGE BETTER BEHAVIOURS
REDUCE STRESS LEVELS
GIVE EMPLOYEES CONTROL
With training in psychology and architecture, Haworth’s Dr. Michael O’Neill has spent decades researching the connection between buildings, worker health and performance. O’Neill advocates for a combination of “nudges” and “micro-controls” that help employees make better decisions.
Beyond movement and healthier choices, the interior design of a building can play a role in reducing stress, the single biggest enemy of wellbeing. A person’s body reacts automatically to stressful events, like deadlines and production pressures, by releasing hormones into the bloodstream.
Research has shown that an additional way to reduce workplace stress is to give people control over their physical workspace.
A nudge is never about taking choice away from somebody. It’s about making the best obvious and easy choice. One way to nudge people to make a healthier choice is by encouraging them to ditch the lift in favour of climbing stairs.
The most dangerous is cortisol, part of the body’s natural fight-or-flight mechanism. Elevated cortisol levels are tied to a host of health issues, from heart disease to lower cognitive abilities. Providing opportunities to connect to nature in the workplace can help. Studies have shown that taking at least 20 minutes out of your day to stroll or sit in a place that makes you feel connected with nature will significantly lower stress hormone levels.
A Harvard study found that taking eight flights of stairs a day lowers average early mortality risk by 33 percent. The key is making the staircase a central element in the building, so people are drawn to take the steps.
31
LATAM FIT-OUT COST GUIDE
At the individual level, it can involve letting people choose a space for the task at hand, so they can do their best individual work and or providing furnishings that can be moved to adjust to someone’s body or workstyle. Giving workers power over small adjustments in their individual work environment ultimately allows them more control over their work process. At the organizational level, create policies and a culture that gives employees permission to choose a range of workspaces that best meets their needs.
Approximate lead time for furniture deliver.
THE APPROXIMATE DELIVERY TIME IS: CHAIRS Country
WORKSTATIONS
CARPET
Imported
National
Imported
National
Imported
National
Sum of the regular Tax
Argentina
120+
60
180
60
60
0
16%
Bahamas
90
30
90
0*
75
0*
7%
Barbados
90
45
120
30
70
30
12%
120
45
120
45
120
45
19%
Cayman Islands
60
0*
90
45
90
0*
19%
Chile
45
30
60
0*
45
0*
22%
Colombia
60
0*
90
45
90
60
19%
Costa Rica
60
0*
60
45
60
30
16%
Ecuador
45
30
75
30
60
30
45%
Guadalajara
60
0
45
30
60
N/A
18%
Guatemala
60
0*
90
45
90
30
12%
Mexico City
60
0
45
30
45
N/A
35%
Monterrey
60
0
45
30
120
N/A
25%
Panama
60
0*
90
45
100
45
20%
Peru
75
0*
75
45
60
30
13%
Queretaro
60
0
45
30
45
N/A
30%
Trinidad & Tobago
90
45
90
120
45
0*
35%
Turks & Caicos Islands
90
30
120
60
60
30
16%
Venezuela
30
120
30
45
60
45
16%
Brazil
*Subject to stock availability, otherwise 60 days
CBRE PROJECT MANAGEMENT
32
PROCUREMENT & PROGRAMME Understanding how a project will be procured and how long it will take by identifying the key milestones is critical to developing an accurate business case. There can be significant variances in in lead times and task durations from one country to the next. This can have a material impact on the viability of a business case and ultimately the decision on whether to proceed with a project. Depending on the location in question, key parameters to consider include: local standards, procurement strategy, statutory approvals and regulations, lead time, importation, religious festivals and public holidays, as well as internal client approvals and sign-off gateways. This local understanding may prompt a review of a project’s procurement of phasing strategy to maintain and achieve the desired programme, whilst minimising any impact on a client’s core business.
33
LATAM FIT-OUT COST GUIDE
While furniture is often seen as a small part of the overall project, it typically has a major impact on end user satisfaction, so it is important to understand furniture lead times and any import restrictions and to allow for these in the programme. The impact of Brexit is still unclear and extra consideration may need to be given to projects in the UK. Products are often sourced from across the EMEA region and new restrictions may have a tangible impact on lead times and budgets.
PROCUREMENT ROUTES
It is also important to consult IT, Security and AV teams so that install, testing and commissioning periods can be programmed in line with the desired completion date.
DESIGN AND BUILD • Tender documents outlining employers requirements, prepared by client/consultant team usually in the form of a brief, i.e. performance criteria • Single contractor appointed and contributes specialist knowledge into design process • Contractor has full design responsibility • Design and construction can occur concurrently
It is recommended to obtain professional programme advice as early as possible in order to give a client the maximum choice regarding the delivery strategy. This advice may come from a programme manager at the initial capital planning stage, or a local project manager who can support the transaction team when developing business case strategies. CBRE’s specialists in programme and project teams across EMEA have provided information relating to the key milestones of our medium specification 1,000 sq m fit0out project. The graph overleaf illustrates the typical timeframes for completing the fit-out using the most common procurement route in each location.
TRADITIONAL • Consultant team appointed by client and prepares fully detailed drawings, specification and pricing documents • Client retains the design risk • Contractor’s Design Portion can be incorporated • Tendered on construction stage design information
CONSTRUCTION MANAGEMENT • Client procures design as per the traditional route • Construction manager appointed to coordinate trade contractors • Trade contracts let on a package by package basis • Client generally retains design and construction risk • Design and construction can occur concurrently
FIT OUT COST GUIDE FIT OUT COST GUIDE
COMMON DATA ANALYSIS COMMON DATA ANALYSIS
1000 SQ.M. PROJECT – TIMELINE IN WEEKS 1000 SQ.M. PROJECT – TIMELINE IN WEEKS 0 10 20 30 40 0
10
20
30
ARGENTINA ARGENTINA12 WEEKS
40
DESIGN
50
60 50
0
70 60
10
26 WEEKS
100
50
5 WEEKS 13 WEEKS 18 WEEKS
24 WEEKS
TURKS & CAICOS ISLANDS
12 WEEKS 14 WEEKS 12 WEEKS 14 WEEKS
12 WEEKS 18 WEEKS
26 WEEKS
30 WEEKS
26 WEEKS 12 WEEKS 11 WEEKS 12 WEEKS 11 WEEKS
BAHAMAS 11 WEEKS 15 WEEKS 28 WEEKS
23 WEEKS 23 WEEKS
BARBADOS 11 WEEKS 15 WEEKS
16 WEEKS 14 WEEKS 16 WEEKS 14 WEEKS
26 WEEKS 30 WEEKS 30 WEEKS
TRINIDAD & TOBAGO 11 WEEKS 15 WEEKS
COSTA RICA 10 WEEKS COSTA RICA
14 WEEKS 10 WEEKS 14 WEEKS
26 WEEKS 24 WEEKS
MEXICO CITY
24 WEEKS
11 WEEKS 15 WEEKS
CAYMAN ISLANDS 10 WEEKS CAYMAN ISLANDS
26 WEEKS
12 WEEKS 10 WEEKS 12 WEEKS 22 WEEKS 22 WEEKS
GUATEMALA 3 WEEKS GUATEMALA
QUERÉTARO 11 WEEKS 15 WEEKS 26 WEEKS
GUADALAJARA
12 WEEKS WEEKS 1215 WEEKS
11 WEEKS 15 WEEKS
15 WEEKS
26 WEEKS
COLOMBIA COLOMBIA11 WEEKS
13 WEEKS 11 WEEKS 13 WEEKS
MONTERREY 24 WEEKS 24 WEEKS
26
40
24 WEEKS
24 WEEKS
3 WEEKS
30
100 90
PERÚ
14 WEEKS 10 WEEKS 14 WEEKS
BRAZIL BRAZIL
80
20
TOTAL
90
10 WEEKS 14 WEEKS
26 WEEKS
VENEZUELA 10 WEEKS VENEZUELA
ECUADOR ECUADOR
80 70
TOTAL
CONSTRUCTION
PANAMA
14 WEEKS 12 WEEKS 14 WEEKS
CHILE CHILE
CONSTRUCTION
DESIGN
11 WEEKS 15 WEEKS 26 WEEKS
LATAM FIT-OUT COST GUIDE
26
LATAM FIT-OUT COST GUIDE
CBRE PROJECT MANAGEMENT
34
WORKPLACE TRENDS AND COMMON PRACTICES Perhaps not unexpectedly, the greatest challenge facing building occupiers over the last 12 months has been economic uncertainty. This is particularly true for those in the Professional Services industry, although challenges vary across different sectors: Technology Companies are most concerned with workforce/talent preferences, whereas in the Banking & Finance sector the main challenge is technology disruption (large year’s overall greatest challenge) and for Life Sciences the main concern is tighter regulation or legislation.
35
LATAM FIT-OUT COST GUIDE
Last year, cost-reduction was the single most important driver of CBRE clients’ strategy. This year cost reduction has dropped, employee engagement, talent attraction and development have risen. In short, people are becoming an increasingly important consideration. It looks increasingly as though buildings that offer an adaptable mix of fit-out types, traditional vs. flexible space, diverse working environments, price points and amenity & tech enablement will compete best for occupiers. There is continued growth in corporate demand for flexible space, with companies expecting to make significant use of it the next three years. While cost reduction and accommodating short-term demand, increases are still the main motives, the use of flexible space as a way of attracting and retaining talent is ten percentage is higher than a year ago. In other words, companies increasingly view flexible space as a way of supporting their talent agenda, and in many cases, are still at an experimental stage of deciding the best approach to the issue.
CBRE PROJECT MANAGEMENT
36
LOCATION
FLOOR OCCUPANCY RATE (square meters per person)
Argentina
8
Bahamas
10
Barbados
15
Brazil
7
Cayman Islands
7
Chile
10
Colombia
8
Costa Rica
6
Ecuador
10
Guadalajara
9
Guatemala
9
Mexico City
11
Monterrey
11
Panama
10
Peru
8.5
Queretaro
11
Trinidad & Tobago
15
Turks & Caicos Islands
10
Venezuela
16
37
LATAM FIT-OUT COST GUIDE
The most common practice to determine
floor occupancy is to have it be dictated by the Municipality in accordance with slab area, floor height and staircase width
CONDITIONS SPACE BEFORE INTERVENTION CONDITIONS
ELECTRICITY CONDITIONS
BASE BUILDING ELECTRICITY DELIVERY RATE
POWER GENERATOR SERVES
Core & Shell
220-240
Argentina
Peru
50 Watts per square meter
Brazil
Argentina
Argentina
Both are applicable. 3A Buildings normally offers power generator for common and internal areas.
Barbados
Brazil
Bahamas
Brazil
Cayman Islands
Common and internal areas in the office.
Cayman Islands Chile Colombia Costa Rica Ecuador Guadalajara Mexico City Monterrey Peru Queretaro Trinidad & Tobago Warm Shell
Generally delivered to floors at 110–120 volts Guadalajara Queretaro Bahamas Barbados Cayman Islands Colombia Ecuador Trinidad & Tobago
Chile Colombia Costa Rica Ecuador Guadalajara Guatemala Monterrey
Panama Turks & Caicos Islands
Cayman Islands Colombia Guatemala Trinidad & Tobago
Queretaro
Common areas only, including elevator/lifts/escalators.
Turks & Caicos Islands
Argentina Chile
Turks & Caicos Islands
80 per SQM
Venezuela
Costa Rica
Mexico City
Ecuador
Generally delivered to floors at 110–240 volts.
Varies. There is no
Bahamas Guatemala
Barbados
Chile Costa Rica Guatemala Mexico City Monterrey Panama
standard defined Barbados Brazil Panama
Guadalajara Mexico City Monterrey Panama Peru Queretaro
Peru
Depends on building
Trinidad & Tobago
Bahamas
Venezuela
Turks & Caicos Islands
Only the 10% of the building in Caracas have power generator.
CBRE PROJECT MANAGEMENT
38
LEASE LEASE ADJUSTMENT RATE Chile uses UF as a currency which changes daily responding to inflation.
LEASE PERIOD LENGHT
LEASE ADJUSTMENT RATE
3 years
Annually
Argentina
Argentina
Bahamas
Barbados
Barbados
Brazil
Argentina
Costa Rica
Cayman Islands
Bahamas
Guadalajara
Chile
Barbados
Monterrey
Colombia
Brazil
Queretaro
Costa Rica
Colombia
Trinidad & Tobago
Ecuador
Costa Rica
Turks & Caicos Islands
Guadalajara
Ecuador
Venezuela
Guatemala
Guadalajara
5 years
Mexico City
Guatemala
Brazil
Monterrey
Mexico City
Cayman Islands
Panama
Monterrey
Chile
Peru
Panama
Colombia
Queretaro
Peru
Ecuador
Trinidad & Tobago
Queretaro
Guatemala
at renewal
Trinidad & Tobago
Mexico City
Bahamas
Turks & Caicos Islands
Panama
Turks & Caicos Islands
Venezuela
Peru
Monthly
Landlord decides
Cayman Islands
Venezuela
Chile Is agreed between both parties and set on lease contract
Cayman Islands
Lease adjustment rate
Location
Lease period
Location
Annually
16
3 years
10
at renewal
2
5 years
9
Monthly
1
The types of contract depend on the area rented, the agreements reached after commercial negotiations with the landlord, and the local market's current situation.
39
LATAM FIT-OUT COST GUIDE
Available
Available
HVAC - Class B buildings
HVAC - Class B buildings
RESTORATIONS Tenant must completely restore the space back to original conditions, including installation removals Argentina Bahamas Brazil Cayman Islands Colombia Costa Rica Ecuador Peru Turks & Caicos Islands Tenant must restore the space back to original conditions, no installation removals Chile Guatemala Panama The space will be return in good state of conservation, any refurbishing will be property of the landlord at the end of the contract. Venezuela Can be responsibility of either the landlord or tenant, but ultimately it's the landlord's prerogative to decide whether to keep some of the improvements made before. Barbados Trinidad & Tobago No obligations identified in lease contract. Guadalajara Mexico City Monterrey Queretaro
CBRE PROJECT MANAGEMENT
40
CHARGES CONDOMINIUM CHARGES
TENANT IMPROVEMENT ALLOWANCE
CCTV on all public areas, lighting in all public areas, cleaning for all public areas, elevators/lifts maintenance, power generator manteinance and/or fuel
A common practice.
Costa Rica
Bahamas
CCTV on all public areas, lighting in all public areas, cleaning for all public areas, elevators/lifts maintenance, power generator use, power generator manteinance and/ or fuel, facade cleaning of windows and glazing from outside of the building, security
Cayman Islands
Panama CCTV on all public areas, lighting in all public areas, cleaning for all public areas, water (fornecimento), elevators/lifts maintenance, power generator use, power generator manteinance and/or fuel, facade cleaning of windows and glazing from outside of the building, security
Chile Turks & Caicos Islands Is a common practice. However need approval of the landlord. Venezuela Is lately becoming popular depending on the property and the landlord
Argentina Bahamas
Colombia
Barbados
Not a normal practice. Tenant must perform and pay for all tenant improvement works.
Brazil Chile
Argentina
Colombia
Brazil
Ecuador
Costa Rica
Peru Trinidad & Tobago Turks & Caicos Islands Venezuela CCTV on all public areas, lighting in all public areas, cleaning for all public areas, water (fornecimento), elevators/lifts maintenance, power generator use, power generator manteinance and/or fuel, facade cleaning of windows and glazing from outside of the building, security, landscaping, irrigation
Ecuador Guadalajara Guatemala Mexico City Monterrey Panama
Cayman Islands
Peru
CCTV on all public areas, lighting in all public areas, cleaning for all public areas, water (fornecimento), elevators/lifts maintenance, power generator use, power generator manteinance and/or fuel, facade cleaning of windows and glazing from outside of the building, Security, only for public areas and parking levels.
Queretaro
Guadalajara
Trinidad & Tobago
Guatemala Mexico City Monterrey Queretaro
41
LATAM FIT-OUT COST GUIDE
Varies Barbados
IVA (OR VAT) TAX Is not refundable. Clients usually budget their construction projects at gross price
LOCATION
Brazil
WHAT IS AN USUAL MUNICIPALITY PERMIT APPROVAL TIME FRAME IN YOUR LOCATION, IF THE PROJECT IS LOCATED INSIDE A HISTORICAL AREA?
LOCATION
REGULAR TAX % APPLICABLE ON CONSTRUCTION SERVICES
Argentina
21%VAT (refundable) + 5.5% IIBB (nonrefundable)
Costa Rica
Argentina
Up to 120 days
Ecuador
Bahamas
Up to 120 days
Bahamas
0%
Guadalajara
Barbados
More than 120 days
Barbados
VAT 17.5%
Considering interior fit-out exclusively,
Brazil
15%-20%
historical area is not a restriction.
Cayman Islands
Tax not applicable
Guatemala Mexico City
Brazil
Monterrey
Cayman Islands
More than 120 days
Chile
19%
Panama
Chile
More than 120 days
Colombia
1 -1.5%
Queretaro
Colombia
More than 120 days
Costa Rica
13%
Venezuela
Costa Rica
Up to 120 days
Ecuador
12%
Is refundable, so my clients usually budget their construction projects at Net price
Ecuador
More than 120 days
Guadalajara
16%
Guadalajara
More than 120 days
Guatemala
12%
Guatemala
More than 120 days
Mexico City
16%
Mexico City
N/A
Monterrey
16%
Monterrey
N/A
Panama
7%
Colombia
Panama
More than 6 months, almost a year, depending the kind of proyect.
Peru
18%
Peru
Peru
Up to 120 days
Queretaro
16%
Trinidad & Tobago
Queretaro
N/A
Trinidad & Tobago
VAT 12.5%
Not applicable
Trinidad & Tobago
Up to 120 days
Turks & Caicos Islands
0%
Bahamas
Turks & Caicos Islands
Up to 120 days
Venezuela
25%
Cayman Islands
Venezuela
Up to 120 days
Argentina Barbados Chile
Turks & Caicos Islands Barbados Trinidad & Tobago
CBRE PROJECT MANAGEMENT
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KEY CONTACTS LATIN AMERICA & CARIBBEAN
COLOMBIA
JUAN ESTEBAN ZABALA Managing Director office: +571 5185292 juan.zabala@cbre.com
FELIPE DEFRANCISCO WIESNER Project Management Director office: +57 1 5185263 felipe.defrancisco@cbre.com
ARGENTINA
COSTA RICA
ANA GONZÁLEZ FERRERO Project Management As. Director office: +54 11 4590 5700 ana.gonzalez2@cbre.com
JEANNETTE JIMÉNEZ Project Manager office: +506 7024 6933 jeannette.jimenez@cbre.com
BRAZIL
MEXICO
HENRIQUE CICCHETTO Project Management Director office: +55 11 5185-4688 henrique.cicchetto@cbre.com.br
OLIVER JAIMES Project Management Director office: 52 (55) 4165 7475 | oliver.jaimes@cbre.com
CHILE KEITH CARRIZO Project Management Director office: +562 2562 2616 keith.carrizo@cbre.com
DISCLAIMER 2019-2020 CBRE CBRE Ltd has taken every care in the preparation of this report. The sources of information used are believed to be accurate and reliable, but no guarantee of accuracy or completeness can be given. Neither CBRE, nor any CBRE company, nor any director, representative or employee of CBRE company, accepts liability for any direct or consequential loss arising from the use of this document or its content. The information and opinions contained in this report are subject to change without notice. No part or parts of this report may be stored in a retrieval system or reproduced or transmitted in reprographics, recording or otherwise, now known or to be devised without prior consent from CBRE.
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