CB Richard Ellis just released their semi-annual survey of global office rents, and the news won’t come as a surprise to multinationals with offices in Buenos Aires and other international hubs.
Of the 179 markets surveyed, there was a 7.7% decline in office rents, almost 50 markets posted double-digit declines, and 40 markets actually posted year-over-year increases. The most expensive office markets remain London’s West End ($184/SF), Tokyo ($171/SF), Hong Kong ($137/SF) and Moscow ($131/SF).Â In contrast, Buenos Aires sits comfortably at the opposite end of the affordability spectrum at $35/SF for average rent and $44/SF for average total occupancy costs.
CBRE summarizes the office outlook in BA: “Argentina is now showing signs of recovery. The rise in unemployment in September was more modest than expected, and consumer confidence seems to be slowly improving. Several new high-end office buildings are nearly completed, which will push vacancy rates higher and lease rates lower, absent a strong economic recovery.”
On a regional level, Buenos Aires commercial space is beginning to look even more affordable relative to neighboring Brazil where office rents in Rio and Sao Paulo are now $70/SF and $64/SF, respectively. (Full Story)
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