2012 Global Market report - NAI Global

Buenos Aires, Argentina
Nassau, The Bahamas
Contact
NAI Castro Cranwell
& Weiss S.A.
+1 54 11 4320 4320
Country Data
Area (Sq Mi)
GDP Growth
GDP 2011 (US$ B)
GDP/Capita (US$)
Inflation Rate
Unemployment Rate
Interest Rate
Population (Millions)
1,073,500
4.0%
$362.99
$8,874.94
10.6%
8.6%
9.0%
40.9
The Argentine economy is expected to realize a 7% growth
in 2011 as the agricultural and commodities sectors
benefit from high prices, and loose fiscal policies continue
to push consumer demand. The economy is expected
to continue expanding throughout 2012 at a rate of
approximately 5% based on Argentina’s competitive
advantages in sectors like agribusiness, commodities,
tourism and specialized manufacturing.
The commercial real estate market was stable in 2011
with soft demand and no new significant commercial
buildings in the market, so that vacancy stayed around 8%.
Lease prices remained stable, with Class A lease prices at
approximately $32/SM/month in new buildings like Madero
Office, the first green building finished in Argentina. Class
B space and suburban offices have seen values remain
flat in 2011 with transactions being completed in the $15
to $20/SM/month range as companies emphasized cost
savings. Significant transactions were done by Oracle
which leased 5,300 SM in Puerto Madero and Vostu
with 5,000 SM in the same area. In a suburban Class A
building, Dow took 5,000 SM paying approximately
$18/SM.
Premium industrial parks and logistics facilities maintained
their values, with the values and vacancy levels remaining
in the low single digits. This segment in Argentina continues
to be underserviced and demand is continuing to increase
with the overall economy. In the other markets segments,
warehouse space vacancy increased slightly.
Top retail lease values remained flat during 2011 both in
High Street properties and shopping centers. Nevertheless,
the retail market continues to be under serviced as is
evident by the inauguration of new shopping centers and
full occupancy in high-end sectors. Cap rates also
remained flat in 2011 and are generally in the 10% to 14%
range, although there continues to be a lack of sellers,
particularly of premium properties.
Although the political uncertainties were solved by the new
re-election of the current government, the evolution of the
country’s inflation and the exterior market volatility seem to
be the principal concerns for investors in the local market.
Investors are finding numerous attractive opportunities in
build-to-suit warehouses, hotel and tourism projects
(especially in the premium markets) and with the conversion
of rural and agricultural property.
Contact
NAI Bahamas
+1 242 396 0028
Country Data
Area (Sq Mi)
GDP Growth
GDP 2011 (US$ B)
GDP/Capita (US$)
Inflation Rate
Unemployment Rate
Interest Rate
Population (Millions)
5,383
0.9%
$7.54
$21,985.00
2.76%
13.95%
4.75%
.313
The overall market remains sluggish. Retail rates have
remained unchanged or have decreased depending upon
location. Rental rates in the Class A properties have
remained relatively stable with tenant retention being a
primary concern. The market for warehouse space has been
strong. Our primary industries; tourism and banking, have
been challenged during 2011.
The commercial real estate market has been faced
with many challenges in 2011. Our tourism and banking
industries have suffered due to global economic conditions
as well as pressure put on tax haven jurisdictions in regards
to disclosure and compliance. The vacancy rate in the Class
A buildings is currently 6.94%. Retail businesses in the
prime shopping areas continue to suffer in our weak
economy. Vacancy rates in the retail sector average 8.73%.
Layoffs in the hospitality and banking industry, as well
as other ancillary businesses, have raised the official
unemployment rate to 13.7%. This has resulted in a rise in
the number of non-performing loans to $1.216 billion dollars
representing 19.6% of total loans.
The Bahamas’ government and affected property owners
have aligned to relocate the container port from the CBD to
Arawak Cay, adjacent to the western entrance to Nassau
Harbor. This relocation, in early 2012, will make available
40 acres of prime harbor front property for redevelopment.
The $2.4 billion Baha Mar Development on New Providence
with an 18-hole golf course, four luxury hotels, luxury spa,
a convention center, casino, shopping arcade and water
theme park is underway and scheduled for completion in
the fall of 2014.
The $4.9 billion Ginn Sur Mer development on Grand
Bahama, currently in receivership, is being sold to a
Canadian development company. The infusion of new capital
will be a much needed shot in the arm for the island of
Grand Bahama as well as the Bahamas. The new Sir Lynden
Pindling US Departure terminal is now open. This is the
first phase of a three phase project. The second phase is
scheduled for completion in the fall of 2012.
The Bahamas is totally dependent upon its tourism and
banking industries. Fortunately the developments previously
mentioned are now becoming a reality and will go a long
way to keeping the local economy afloat, positioning this
island nation for a bright future as world economic conditions
improve.
Buenos Aires At A Glance
RENT/M 2 /MO
US$ RENT/SF/YR
low High low High Vacancy
doWntoWn offIce
New Construction (AAA)
Class A (Prime)
$ 27.00
$ 23.00
$
$
32.00
30.00
$ 30.10
$ 25.64
$ 35.67
$ 33.44
1.00%
7.00%
Class B (Secondary)
suburban offIce
$ 10.00 $ 17.00 $ 11.15 $ 18.95 15.00%
New Construction (AAA)
Class A (Prime)
Class B (Secondary)
IndustrIal
$ 18.00
$ 14.00
$ 10.00
$
$
$
22.00
18.00
12.00
$ 20.07
$ 15.61
$ 11.15
$ 24.53
$ 20.07
$ 13.38
1.00%
2.00%
3.00%
Bulk Warehouse
Manufacturing
High Tech/R&D
retaIl
$
$
$
3.50
3.50
5.00
$
$
$
7.00
5.50
8.00
$ 3.90
$ 3.90
$ 5.57
$
$
$
7.80
6.13
8.92
N/A
N/A
N/A
Downtown
$ 38.00 $ 115.00 $ 42.36 $ 128.21 3.00%
Neighborhood Service Centers $ 18.00 $ 25.00 $ 20.07 $ 27.87 10.00%
Community Power Center
Regional Malls
Solus Food Storesl
N/A
$ 25.00
N/A
$
N/A
80.00
N/A
N/A
$ 27.87
N/A
N/A
$ 89.19
N/A
N/A
8.00%
N/A
deVeloPment land low/m 2 High/m 2 low/acre High/acre
Office in CBD
Land in Office Parks
Land in Industrial Parks
Office/Industrial Land - Non-park
Retail/Commercial Land
Residential
$ 500.00 $ 1,200.00 $ 2,023,431.33 $ 4,856,235.20
N/A N/A N/A N/A
$ 30.00 $ 80.00 $ 121,405.88 $ 323,749.01
$ 40.00 $ 80.00 $ 161,874.51 $ 323,749.01
$ 200.00 $ 1,000.00 $ 809,372.53 $ 4,046,862.67
$ 400.00 $ 1,500.00 $ 1,618,745.07 $ 6,070,294.00
Nassau At A Glance
doWntoWn offIce
New Construction (AAA)
Class A (Prime)
Class B (Secondary)
suburban offIce
New Construction (AAA)
Class A (Prime)
Class B (Secondary)
IndustrIal
Bulk Warehouse
Manufacturing
High Tech/R&D
retaIl
Downtown
Neighborhood Service Centers
Community Power Center
Regional Malls
Solus Food Stores
RENT/SF/YR
US$ RENT/SF/YR
low High low High Vacancy
deVeloPment land low/sf High/sf low/acre High/acree
Office in CBD
Land in Office Parks
Land in Industrial Parks
Office/Industrial Land - Non-park
Retail/Commercial Land
Residential
N/A N/A N/A N/A N/A
$ 53.00 $ 62.33 $ 53.00 $ 62.33 13.20%
$ 29.00 $ 48.80 $ 29.00 $ 48.80 24.70%
N/A N/A N/A N/A N/A
$ 41.50 $ 67.90 $ 41.50 $ 67.90 4.90%
$ 15.00 $ 32.00 $ 15.00 $ 32.00 12.00%
$ 10.00 $ 15.00 $ 10.00 $ 15.00 1.70%
N/A N/A N/A N/A N/A
N/A N/A N/A N/A N/A
$ 15.00 $ 81.00 $ 15.00 $ 81.00 8.20%
$ 15.50 $ 89.40 $ 15.50 $ 89.40 8.80%
N/A N/A N/A N/A N/A
N/A N/A N/A N/A N/A
N/A N/A N/A N/A N/A
$ 35.00 $ 100.00 $ 1,524,589.45 $ 4,355,969.86
$ 10.00 $ 30.00 $ 435,596.99 $ 1,306,790.96
$ 10.00 $ 23.00 $ 435,596.99 $ 1,001,873.07
$ 10.00 $ 23.00 $ 435,596.99 $ 1,001,873.07
$ 15.00 $ 30.00 $ 653,395.48 $ 1,306,790.96
$ 10.00 $ 138.00 $ 435,596.99 $ 6,011,238.40
2012 Global Market Report n www.naiglobal.com 67