The hotel and residential real markets may be the sexiest and most publicized sectors of Uruguay’s real estate industry, but commercial office space has been booming lately as well. According to Observa, hundreds of thousands of new square feet are rising in the capital city of Montevideo with Pocitos Nuevo emerging as one of the preferred locations for new office space.
A new report released by Uruguay XXI estimates the construction of an additional 260,000 square feet of commercial space this year which, added to existing inventory levels, would give the country an estimated 2.28 million square feet of office space by year end 2011 and 3.50 million by 2014. The current wave of commercial construction kicked off in 2007 with the World Trade Center III project followed by several high-profile Montevideo office renovations which started in 2009.
Looking at commercial construction in terms of neighborhoods, sector analysts believe Pocitos will soon overtake Ciudad Vieja as the MVD barrio with the most prime commercial square footage to offer. Between now and 2014, 580,000 square feet will rise in Pocitos bringing available office space up to 1.04 million square feet, about 40,000 more square feet than Ciudad Vieja. Other barrios with strong commercial prospects include Aguada, Rambla Sur, Carrasco and Punta Carretas.
Finally, in terms of existing office space, the World Trade Center complex boasts the highest rent at US$2.23/square foot followed by Torre Marigot (US$1.86/SF), Torre Juncal (US$1.86/SF), Plaza Mayor (US$1.67) and Aguada Park (US$1.67). (Full Story in Spanish)
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