Companies Move Away from the Capital

Traffic congestion, the price of land and rents, and logistical facilities are some of the reasons why more and more companies in Costa Rica prefer to be located outside of San José.

Wednesday, April 25, 2018

Between 2016 and 2017 the number of companies set up in San José fell from 15,311 to 14,748, which is equivalent to a decrease of 4%, according to figures from the National Institute of Statistics and Census.

In relation to the reasons why companies leave the Costa Rican capital, manager at Colliers, Randall Fernández, explained to Elfinanciero.cr.com that " ...Ease of storage, transport, logistics and other more industrial factors mean that businesses for which these characteristics are important are moving away from San José to places where they can grow more and where the regulatory plans are more favorable ...".

The article adds that " ...The price of land is one of the heaviest burdens. Not every economic activity is profitable in San Jose, due to the prices of rents or taxes. This changes the services that are offered from here."  In addition, "... existing vehicular traffic makes it difficult to transport not only products, but also private workers, and this is something that many companies end up suffering from."

Regarding the locations chosen by the companies that changed location in 2017, the province of Alajuela was the province that registered the greatest movement. Between 2016 to 2017, 24 companies that were previously located in other areas of the country, moved to Alajuela, and only nine left.



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Although in Costa Rica the level of unemployment of buildings in industrial parks is 8%, some precincts are facing threats, since companies could leave them because of the traffic congestion in the area where they are located and the travel time of employees.

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Not Enough Logistics Parks in Costa Rica

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It has been estimated that there are 80 million square meters of space in unmet demand for use as warehouses, industrial buildings and Office-warehouses by logistics companies.

In response to this lack of supply identified by Colliers International new projects have appeared west of the capital, near the logistics centers of companies which distribute their products nationwide.

The Best Location for Retail in San Jose

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In 1986, 12 blocks of the Central Avenue were paved in cobblestone, car traffic quickly turned into pedestrians and the boulevard and became what is today a large shopping center in the heart of San Jose.

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