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Buenos Aires Office Market Report 3Q 2020

Buenos Aires Office Market Report 3Q 2020

3Q20

This report was made during the Covid-19 pandemic. On March 20, 2020, mandatory quarantine was declared in Argentina, going through different stages of opening and restricting economic activities based on the evolution of the pandemic.

The return to workspaces is taking place gradually, with scaled-down teams operating on alternate days to reduce occupancy and maintain social distance. Although there are still no specific dates to return to the offices, the home office is here to stay, where a rotating percentage close to 30% will work from home.

In order to make a more precise analysis, we must be attentive to what happens with the Covid-19 vaccine and at the local level to the political and economic decisions made by the government to outline a plan for GDP growth in the medium term.

Buenos Aires Office Market

Total Inventory (MSF)	27.0
Average Asking Rent (Price/SF)	$29.03
Availability Rate (%)	11.01
Net Absortion (SF)	-322,530

The third quarter of 2020 shows an increase in vacancy and negative net absorption. The vacancy rate for third-quarter 2020 closed at 11.01% of the available stock, and net absorption was negative 322,530 square feet. The average rental value decreased slightly compared to second-quarter 2020, averaging US $29.03/SF.

No relevant incorporations occurred in the Class A market during third-quarter 2020. The return to activity is still very recent and gradual, resulting in a significant delay for the buildings under construction.

Download Buenos Aires Office Market Report 3Q20

Buenos Aires Industrial Market

Premium Warehouses

Total Inventory (MSF)	25.1
Average Asking Rent (Price/SF)	$6.60
Availability Rate (%)	14.5
Net Absortion (SF)	-69,966

Industrial and Logistics Parks

Total Inventory (MSF)	523.4
Average Asking Rent (Price/SF)	$74.00
Availability Rate (%)	52.3
Net Absortion (SF)	645,834

Market indicators did not undergo strong variations during the third quarter of 2020. The stock of Class A warehouse remained unchanged from the previous quarter, at 2.32 million square meters. The vacancy rate increased slightly to 14.5%, and the average rental rate dropped slightly averaging $6.60/SF.

Download Buenos Aires Industrial Market Report 3Q20