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Buenos Aires Office Market Report 2Q 2020

Buenos Aires Office Market Report 2Q 2020

2Q20

These reports were made during the Covid-19 pandemic. On March 20th, 2020, mandatory quarantine was declared in Argentina, limiting the possibility of commuting to work for most companies. From this date onward, different stages of opening and restricting economic activities were implemented based on the evolution of the pandemic. Given the fact that the mandatory quarantine is still in effect, some conclusions cannot be drawn regarding the impact on market variables such as price, vacancy, absorption, etc., since there are negotiations between the main market players and no general market trends are notable yet.

Buenos Aires Office Market

Total Inventory (MSF)	27.0
Average FS Asking Rent (Price/SF)	$29.44
Availability Rate (%)	9.18
Net Absortion (SF)	-167,056

The second quarter of 2020 shows an increase in vacancy and negative net absorption after four consecutive quarters of positive net absorption. The vacancy rate for second-quarter 2020 closed at 9.18% of the available stock, and net absorption was negative 167,056 square feet. The average rental value decreased slightly compared to first-quarter 2020, averaging US $29.44/SF.

No relevant incorporations occurred in the Class A market during second-quarter 2020, and no additions to the stock are expected until activity resumes.

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Buenos Aires Industrial Market

Premium Warehouses

Total Inventory (MSF)	25.1
Average FS Asking Rent (Price/SF)	$6.90
Availability Rate (%)	14.2
Net Absortion (SF)	511,285

Industrial and Logistics Parks

Total Inventory (MSF)	523.4
Average FS Asking Rent (Price/SF)	$79.50
Availability Rate (%)	52.4
Net Absortion (SF)	-

Due to the restrictions imposed by the Covid-19 pandemic, the stock of Class A warehouse remained essentially unchanged from the previous quarter, reaching 2.32 million square meters. The vacancy rate increased to 14.2%, and the average rental rate remained stable at $6.90/SF.

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