Office | 2Q | 2014 - Colliers International

2ND QUARTER 2014 | OFFICE
RIO DE JANEIRO
MARKET REPORT OFFICE
CLASSES A+, A AND B OFFICE MARKET REPORT
FIRST SEMESTER HAD A WEAK PERFORMANCE
COMPARED TO THE PREVIOUS YEARS
Existing
Inventory:
1.19 million sqm:
A+ and A
853 thousand
sqm: B
Under
Construction
Inventory:
454 thousand
sqm
Under Project
Inventory:
368 thousand
sqm
Delivered
in the Quarter:
10 thousand sqm
Availability:
16.5%: A+ and A
8.9%: B
Average Asking
Net Absorption:
Lease Price:
-15 thousand sqm:
R$ 156/sqm/
A+ and A
month: A+ and A
-13 thousand
R$ 137/sqm/
sqm: B
month: B
EXISTING INVENTORY AND AVAILABILITY RATE
After the end of the first semester, the corporate office market in Rio de
Janeiro showed a lower performance related to that experienced in the
previous years.
For Q3, the expectative is to have a better scenario, with the return of
the demands and the completion of business transactions.
Many deliveries expected for Q2 were postponed to Q3. The building
Barra Trade Prime in the submarket Barra da Tijuca with 10,000sqm
obtained the occupancy permit, being the only one of this period. The
first semester ended with 1.19 million sqm considering only high-end
properties.
By the end of 2014, other 117,000sqm should be added to the inventory.
The availability rate, however, will be increasing due to high supply and
lower demand.
EXISTING INVENTORY BY CLASS (THOUSAND SQM)
765
765
AVAILABILITY RATE BY CLASS (%)
17.5
16.5
15.9
13.3
430
419
A+
A
Q1
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Q2
A+
A
Q1
Q2
MARKET REPORT office | 2ND QUarter 2014
EXISTING INVENTORY (THOUSAND SQM) X AVAILABILITY RATE (%) BY SUBMARKET AND CLASSES A+ AND A
800
60,0%
54.2
700
50,0%
600
500
400
40,0%
41.6
747
30,0%
25.6
300
20,0%
to
0,0%
Le
bl
Co
Ba
rra
13
Po
r
pa
ca
ba
na
ro
Ce
nt
Bo
t
af
og
o
ca
ju
Ti
da
28
3.4
10,0%
6.6
an
em
a
116
0
32
8
/Ip
12.8
on
248
100
o
13.7
Fl
am
en
g
200
Inventory
Availability
NET ABSORPTION
NET ABSORPTION BY CLASS (THOUSAND SQM)
The net absorption of Q2 was -15,000sqm considering just the classes A+
and A. The absorption level of class A+ remained stable compared to the
first quarter. The expectative is an increase in the next semester, since the
forecast still being the migration to buildings with better characteristics.
4
4
2
Absorption for classes A and B were negative, a fact that should remain
throughout the course of the year.
-20
The main devolutions occurred in the buildings Serrador (class A) and
Contax (class B), both in the submarket Centro.
A+
A
Q2
Q1
PRICES
The asking average lease prices keeps the decreasing trend. The high-end properties ended the second quarter at R$ 156.13. For class B, the asking
price was R$ 137.72.
Despite the historical of reductions in the recent past quarters, the incidence has been occurring moderately. The expectative is the accomplishment of projected deliveries raising the availability rate, which will boost the flexibility on commercial conditions for the short term.
The submarket of Leblon / Ipanema has the highest asking average price of Rio de Janeiro market considering all classes, being the only one to
exhibit an increase. Barra da Tijuca had a slightly increase due to deliveries of the period.
AVERAGE ASKING LEASE PRICE BY SUBMARKET (R$/SQM/MONTH)
R$ 256.36
R$ 172.50
R$ 98.06
R$ 137.00
R$ 124.31
R$ 85.00
Classes A+ and A
| Colliers International
a
em
Le
bl
o
n/
Ip
an
en
am
Fl
pa
c
Co
go
ab
an
a
ro
nt
Ba
Ce
Bo
ta
fo
go
R$ 85.84
rra
da
Ti
ju
ca
R$ 85.00
p. 2
R$ 253.51
R$ 127.67
Class B
Po
rto
R$ 185.00
R$ 171.17
MARKET REPORT Office | 2nd quarter 2014
FUTURE INVENTORY
INVENTORY UNDER CONSTRUCTION BY SUBMARKET (%)
During the first semester the market received approximately 59,000sqm
and other 117,000sqm are expected in the course of the year.
The largest amount of square meters under construction is present in
the submarkets of Centro and Porto, which should have their availabilities rates oscillating in the coming quarters.
Flamengo
3%
Botafogo
1%
Total: 454 thousand sqm
Barra da Tijuca
8%
The buildings to be delivered on the third quarter are: Casa Corporate in
Barra da Tijuca, Centro Administrativo Cidade Nova in Centro and Port
Corporate in Porto.
Centro
56%
Porto
32%
STATISTICS TABLE
TOTAL A+ A AND B (EXISTING MARKET)
Availability
Average
Average
Net
Rate
Asking Lease
Asking Lease
Absorption
B
Price A+ and A
Price B
A+ and A
25.6%
3.0%
R$ 98.06
R$ 85.00
1,471
-622
56,875
145,081
13.7%
5.6%
R$ 171.17
R$ 137.00
806
370
3,600
747,185
563,702
12.8%
10.9%
R$ 127.67
R$ 85.94
-17,441
-13,255
276,974
Copacabana
8,288
-
3.4%
-
R$ 200.00
-
0
-
0
Flamengo
28,874
57,398
41.6%
5.2%
R$ 172.52
R$ 124.31
-95
690
17,817
32,734
18,058
6.6%
4.7%
R$ 253.51
R$ 256.36
-289
-200
1,655
Porto
13,092
-
54.2%
-
R$ 85.00
-
0
-
466,153
Total
1,195,647
853,006
16.5%
8.9%
R$ 158.27
R$ 137.72
-15,548
-13,017
823,074
Inventory
Inventory
Availability
A+ and A
B
Rate A+ and A
248,820
68,767
Botafogo
116,654
Centro
Submarket
Barra da
Tijuca
Leblon /
Ipanema
Net
Absorption B
Under
Construction
and Project
Colliers International |
p. 3
MARKET REPORT Office | 2nd quarter 2014
Galeão International Airport
>>
MAP OF RIO DE JANEIRO SUBMARKETS
22 km far from South Region
30 km far from Barra da Tijuca
Linha Amarela Highway
20 km far from Downtown
Av. Brasil
PORT
Access to the
Rio de Janeiro Port
Santos Dumont
Domestic Airport
Av. Pres. Vargas
Av. Rio Branco
CENTRO (Downtown)
FLAMENGO
Rebouças Tunnel
Av. Embaixador Abelardo Bueno
BARRA DA TIJUCA
BOTAFOGO
Jacarepaguá
Airport*
LEBLON / IPANEMA
COPACABANA
Av. Ayrton Senna
a
Barr
goa
La
Av. Atlântica
ay
Highw
Av. Vieira Souto
Av. das Américas
Av. Niemeyer
* Only for executive flights.
Colliers International |
p. 4
MARKET REPORT office | 2ND QUarter 2014
MARKET REPORT ESCRITÓRIOS | 2º Trimestre 2014
COLLIERS OPPORTUNITIES
Porto Maravilha
Lease
Total Area: 8,737sqm
Ref: 2023
REAL ESTATE MARKET
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