At the end of the first quarter, office space inventory totaled 1.4 million square meters, with an average price of $19 / m2, up 7% compared to the same period in 2016.
Data from the report "Office Real Estate Market up to June 2017" by Colliers Costa Rica shows that at the end of March this year the inventory amounted to 1.4 million square meters, an increase of 2.4% compared to the same period in 2016.
Predictions are that the office vacancy rate in Panama City, currently 33%, could reach 45% in 2016.
Following that under usage prevailing in the office market rental rates have dropped by up to 30%. In the case of hotels, they are also experiencing this phenomenon, the vacancy rate has fallen by 50% and in turn nightly rates have decreased by 28%.
The second stage, with spaces available from 55 m ₂, was built within the free zone regime, with the option to nationalize spaces.
After the success of the first phase of office center TERRA Campus Corporativo, whose placement is 90% just 16 months after its inauguration , the May 15 completion of the new Class A office building is celebrated , which completes the second stage of the project.
In the last year the country has built about 120 thousand square meters of new class A and AB office spaces, and recorded an availability rate of 11.9%.
In recent years, Costa Rica has become one of the major markets for offices in Latin America, ranking eighth in creation of supply in this sector, according to a study by the US real estate firm Jones Lang LaSalle (JLL).
The market reported an increase in its vacancy rate of 10-12%, while the inventory in square meters is also grew, by 12% during the first quarter of 2013.
The data was revealed during the Expo Offices event which took place on the 5th and 6th of August.
According to Rodolfo Cruz, manager at Inmobiliaria Contempo, "the inventory went from 985 thousand square meters in the first quarter of 2012, to 1,110,000 square meters in the first quarter of 2013, and the vacancy rate rose from 10% to between 11 and 13%, according to various measurements. Experts say that more than 10% means that there is an oversupply, a reasonable supposition given the large number of projects that are coming in," said Cruz.
During the first six months of 2013, the Class A office market remained highly dynamic, mainly in the Banking area and Costa del Este.
A market study prepared by CBRE Offices Panama, recorded a total of 400,104 square meters under construction in the office market, of which 379,000 are Class A and luxury offices, while 20,685 are Class B and C offices
A new five-storey tower will be built next to the first building, where companies such as GlaxoSmithKline, HB Fuller, and ProSoft, and others are already operating.
4D Desarrollos Inmobiliarios today announced the start of construction of the second stage of TERRA Corporate Campus, a Class A office center located next to to the Terramall mall, in East San Jose, a sector that in the past two years has seen high growth levels and economic dynamism, becoming a center of real estate development and commercial relevance.
An increase in the supply of offices in Panama City is putting downward pressure on occupancy levels.
According to the consultant Indesa, the occupancy level in the first quarter of 2011 was 95.4%, versus 86.5% for the same period this year.
Speaking about the topic, the Corporate Finance Director of Indesa, Francisco Escoffier, said that, "In the next couple of years it is not expected that the total demand for offices, including locally generated demand and the demand generated by the arrival of multinationals, will be enough to absorb new supply coming, so the available inventory will go up and occupancy will do down ... in the research occupancy means that there is physically one tenant in the property, which is a conservative definition. "
If all the planned office buildings were constructed, supply would exceed demand.
At the moment, the construction companies involved are ready to begin construction of 180,000 m2 in the Greater Metropolitan Area (GAM) in San Jose, which, if this went ahead, would lead to a situation of market oversupply, reports Elfinancierocr.com.
What is the current situation? At the end of the first quarter (2012) there were 990,721 square meters of office space, of which 9.4% is available. There are 126,909 meters square under construction. Colliers estimates that this supply can be absorbed smoothly by the market within 12 to 18 months.
Real estate agents give good advice: Attack the client before arriving in Panama and know their needs.
The supply of offices, especially Class A ones, is very competitive in the Panamanian capital, as buildings in this category have great locations, finishes and amenities.
"According to realtors surveyed, most of the offices currently listed by customers are those ranging from 100 to 150 square meters and after that those from 200 square meters and up," reports Capital.com.pa.