Office Market: Vacancy Rate Rising

Last year in Costa Rica, the office market vacancy rate doubled from 7.45% in the first quarter of 2020 to 15.15% in the same period of 2021, a rise that was largely induced by the implementation of telecommuting.

Tuesday, June 1, 2021

In this context of health crisis that was triggered by the spread of Covid-19 several companies changed their work dynamics, with migration to telecommuting being one of the most important changes.

Given the movements that are reported in the office market, specialists in the subject on the behavior of the occupancy rate, supply and demand, in the present and future.

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Bertha Mora, Market Research Manager of the firm Colliers International Costa Rica, told Nacion.com that "... 'the relocation of companies to other offices and the implementation of teleworking due to the pandemic are some of the factors that have increased these increases in offices'."

In this new business normal, the specialist believes it is a good "... opportunity for companies to take on the challenge of researching, designing and creating new office spaces to meet the new demands of tenants."

Focusing on tenants' welfare and offering flexibility in leases are some of the trends that will be evident in the coming years, the specialized firm predicts.

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More on this topic

Office Rental: Market Correction

March 2021

The oversupply of office space and changes in the dynamics and ways of working of companies have led the office rental market to a corrective or adjustment phase, which is mainly evidenced by the downward pressure on rental prices.

At the beginning of 2021, CentralAmericaData expected that in the coming years, 4 out of 5 companies will bet on hybrid work modalities, which include face-to-face and remote activities. This phenomenon will force office supply to adjust to the new market conditions.

Real Estate Rentals: Outlook for 2021

September 2020

Because the supply of office and commercial buildings has increased, and at the same time unemployment has also risen, in Costa Rica the directors of these properties foresee that next year the parties will have to renegotiate the contracts.

Data collected by Colliers International indicate that between June 2019 and the same month in 2020 the total inventory of commercial buildings increased by 1.5% from 1.16 million m2 to 1.18 million m2.

Offices: Changes in Market Conditions

August 2020

Since office construction is still active and could enter a phase of over-supply, combined with the strong increase in telecommuting, the market could face a contraction in the coming months.

Because of the spread of covid-19, governments in Central America have decreed strict home quarantines.

Costa Rica: Office and Store Prices in Mini Cities

August 2013

Rent an office in a standard office building costs around $17.38 per square foot, whereas in a mixed-use development the price rises to $23.

This was revealed by a study by the real estate company Colliers International, who also explained that "when it comes to mixed use commercial premises, the average price recorded by the company reaches up to $28, whereas in other commercial centers the figure drops to $18.17 ", reported Elfinancierocr.com.

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NAI Costa Rica

NAI Costa Rica is the representative of NAI Global in Costa Rica and Central America, leaders in real estate consulting services worldwide; with 380 offices in 55 countries around the world.
Operates in Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama
Phone: (506) 2228-7760 - (506) 2289-8075

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