2012 Global Market report - NAI Global

San Jose, Costa Rica
Contact
NAI Costa Rica
+ 1 506 2228 7760
Country Data
Area (Sq Mi)
GDP Growth
GDP 2011 (US$ B)
GDP/Capita (US$)
Inflation Rate
Unemployment Rate
Interest Rate
Population (Millions)
19,700
San Jose At A Glance
conversion: 498.65 col = 1 us$ RENT/M 2 /YR US$ RENT/SF/YR
low High low High Vacancy
doWntoWn offIce
New Construction (AAA)
Class A (Prime)
Class B (Secondary)
suburban offIce
COL 128,016.00
COL 103,632.00
COL 73,152.00
COL 158,496.00 $ 23.85
COL 112,776.00 $ 19.31
COL 109,728.00 $ 13.63
$ 29.53
$ 21.01
$ 20.44
4.30%
7.40%
9.50%
New Construction (AAA)
Class A (Prime)
N/A
COL 77,419.20
N/A
COL 105,460.80
N/A
$ 14.42
N/A
$ 19.65
N/A
9.00%
Class B (Secondary)
IndustrIal
COL 48,768.00 COL 97,536.00 $ 9.09 $ 18.17 29.30%
Bulk Warehouse
COL 33,599.04 COL 48,219.36 $ 6.26 $ 8.98 10.40%
Manufacturing
COL 28,528.80 COL 60,106.80 $ 5.32 $ 11.20 19.80%
High Tech/R&D
retaIl
COL 21,213.60 COL 29,260.80 $ 3.95 $ 5.45 5.90%
Downtown
Neighborhood Service Centers
Community Power Center
Regional Malls
COL 70,896.48
COL 71,201.28
COL 59,009.28
COL 162,153.60
COL 132,588.00
COL 191,597.28
COL 202,935.84
COL 240,060.48
$ 13.21
$ 13.27
$ 10.99
$ 30.21
$ 24.70
$ 35.70
$ 37.81
$ 44.73
9.70%
4.90%
1.70%
N/A
Solus Food Stores
COL 42,672.00 COL 65,759.88 $ 7.95 $ 12.25 2.40%
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
4.2%
$38.41
$7,946.35
4.2%
6.5%
N/A
4.834
Costa Rica’s economy has diversified in recent years from
agricultural commodities to specialized agricultural and
electronic supplies. During 2011, GDP growth was 4.5%.
Costa Rica attracted one of the highest levels of FDI in Latin
America. Outsourcing services among others, and FTZ
agreements have helped to increase the economic growth.
FDI is estimated to increase by 50% by the end of 2011
due to the market saturation of insurance companies and
major telecommunication firms such as Telefonica, Movistar,
America Movil, Claro and TUYO. This increase happened
after the government opened up the monopoly formerly held
by the I.C.E, which is the country’s electrical institute.
IBM recently announced a $300 million investment and
Bridgestone an $88 million plant. Other investments include
NDC with a 1,600 SM plant for $4 million and Beam One
for $10 million. The demand has increased in almost every
type of real estate sector and the market has been adapted
accordingly. Tourism rose 7.8% compared to 2010 with
more than 2.1 million visitors in 2011. Airlines introduced
flights to SJO Airport (third best airport in Latin America) and
to Liberia International. AMP Terminals received a $1 billion
deal to manage Moin Port.
There was a $68 million expansion in the hotel industry with
several good projects arriving on the market; Riu (five-star,
500 room hotel), Melia (312 rooms in Papagayo), Bvlgari
(invested $100 million in the first hotel in America), Holiday
Inn finished a hotel in Escazu, Wyndham H.G. (new hotel in
Escazu) and Hyatt (new hotel in Papagayo and first hotel to
the east of San Juan)
The vacancy rate in the office market is 8.6%. The projection
for the vacancy rate in 2012 is that it will remain low,
between 7% and 9%, with some volatility. Approximately
146,155 SM of Class A+ and Class A office inventory is
under construction and should be completed within the next
nine months.
N/A N/A N/A N/A
N/A N/A N/A N/A
N/A N/A N/A N/A
N/A N/A N/A N/A
N/A N/A N/A N/A
N/A N/A N/A N/A
Santo Domingo, Dominican Republic
Contact
NAI Dominicana
+1 809 476 7788
Country Data
Area (Sq Mi)
GDP Growth
GDP 2011 (US$ B)
GDP/Capita (US$)
Inflation Rate
Unemployment Rate
Interest Rate
Population (Millions)
The Dominican Republic has the second largest economy
in the Caribbean and experienced a growth rate superior
to 4.2% in 2011. The country is primarily dependent
on agriculture, trade and services, particularly tourism.
Agriculture remains the most important sector in terms of
domestic consumption and the second most important in
terms of export earnings. Tourism accounts for more than
$1 billion in annual earnings. Free trade zone and tourism
are the two fastest growing export sectors.
The office market in Santo Domingo, the capital of the
Dominican Republic, is being driving by a mix of foreign and
national companies. Currently there is a low inventory with
limited vacancy, but a handful of new Class A office buildings
should enter the market in 2012. Nevertheless, this new
product is largely pre-rented or purchased due to the lack
of new supply and high demand. Resulting from this
demand in the market, prices have begun to increase.
The industrial market is also experiencing a low inventory
due to the lack of new speculative product and heavy
demand. The activity is occurring mainly in the Free Zone
and the industrial park around the port and the airport.
Distribution centers and manufacturing are the principal
industrial tenants around the country.
The retail sector is experiencing the most import activity,
mainly in the capitol area. A new mall opened recently and
two more are under construction. These latter two are almost
90% pre-leased or pre-sold. Despite the new construction, a
low inventory continues and prices are increasing. Single tenant
retail stores, like supermarket chains, have also expanded their
presence around the country. These expansion and
development trends are expected to increase through 2012.
Investment in the tourism sector is also increasing with the
construction of new hotels and resorts (most notably in the
Punta Cana area), infrastructure development with the
second line for the Santo Domingo subway, the construction
of a new cruise port in Puerto Plata that will increase tourism
along the North Coast and the inauguration of the Atlantic
Boulevard in the Samana area (the Corredor Duarte) which
includes several projects such as tunnels, overpasses, etc.
to help the traffic flow into and out of Santo Domingo.
The multifamily rental market is in need of new construction
due to a lack of supply. Most new construction is mainly
concentrated in building condominiums. There is also a
strong opportunity in the hospitality market due to the high
annual occupancy rate.
Santo Domingo At A Glance
conversion 38.00 doP = 1 us$ RENT/M 2 /YR US$ RENT/SF/YR
low High low High Vacancy
doWntoWn offIce
New Construction (AAA)
DOP 4,320.00 DOP 4,896.00 $ 10.56 $ 11.96 10.00%
Class A (Prime)
DOP 3,168.00 DOP 3,744.00 $ 7.75 $ 9.15 9.00%
Class B (Secondary)
suburban offIce
DOP 2,160.00 DOP 2,592.00 $ 5.28 $ 6.34 11.00%
New Construction (AAA)
Class A (Prime)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Class B (Secondary)
IndustrIal
Bulk Warehouse
DOP 2,160.00
DOP 2,937.60
DOP 2,592.00 $
DOP 4,389.10 $
5.28
7.18
$ 6.34 15.00%
$ 10.73 18.00%
Manufacturing
DOP 4,976.60 DOP 7,257.60 $ 12.17 $ 17.74 12.00%
High Tech/R&D
retaIl
Downtown
Neighborhood Service Centers
Community Power Center
Regional Malls
Solus Food Stores
N/A
DOP 1,728.00
N/A
N/A
N/A
N/A
N/A
DOP 2,592.00 $
N/A
N/A
N/A
N/A
N/A
4.22
N/A
N/A
N/A
N/A
N/A
$ 6.34
N/A
N/A
N/A
N/A
N/A
8.00%
N/A
N/A
N/A
N/A
deVeloPment land low/sf High/sf low/acre High/acre
Office in CBD
Land in Office Parks
Land in Industrial Parks
Office/Industrial Land - Non-park
Retail/Commercial Land
Residential
18,792
5.5%
$53.92
$5,363.73
4.9%
13.5%
N/A
10.052
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 N/A
DOP 168.00 DOP 180.00 $ 17,891.39 $19,169.35
N/A N/A N/A N/A
2012 Global Market Report n www.naiglobal.com 70