Asunción office market 2015

2015

Asunción Office Market

2015

ASUNCIÓN.

Office Market.The Office market development still in process of evolution By theend of this year 2015 will be completed with the first major works in Location Inventary (sqm)

Class A+ & A Inventary new locations

end of this year 2015, will be completed with the first major works incorporate buildings of the city of Asunción. This no doubt willchange the landscape of the current market

New corridors current distribution

Mcal. Brasilia 6 000

Otros, 12.379

Location Inventary (sqm)

Mcal. López 30.200

España 14.100

Aviadores 42.421

Brasilia 6.000

Otros 12.379

Total 105.100

López, 30.200Brasilia, 6.000

España, 14.100Aviadores, 42.421

40.000

45.000

Vacancy A+ & A

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

Mcal. López España Aviadores Brasilia Otros

Available area

Inventary (sqm)

Asunción Office Market Trends

2015


Offer.

Future supply in the near future and its occupation, is the unknown that makes itself felt in the market of offices of Asunción. Although it isnot an amount of square meters the important who will be entering the market with respect to similar situation in the other countries of theregion, they are novel values for Asuncion

2015

Estimation ProjectsRentable

Area2015 / 2016

2015 World Trade Center 35.0002015 Walbaum 3.4002015 Aymac II 2000,02015 American Building 1200,02016 Aviadores 1 12.0002016 Sk C t 6 600

80.600

2016 Sky Center 6.6002016 Cafepar 4002016 Blue Tower 20.000

2017 Aviadores I y II 7.489

2017 Torre Las Américas 8.4792017 Cenit 12.6012017 Juan XXIII 6.7572015 Walbaum 3.400

48.580

New 2017/18

Aviadores I y II Torre Las Américas

New 2015/2016

W T C Walbaum

2017 Citabella 9.854129.180

15%

18%7%

20%

Aviadores I y II Torre Las Américas

Zenit Juan XXIII

Walbaum Citabella

43%1%

25%

W.T.C. WalbaumAymac II American BuildingAviadores 1 Sky CenterCafepar Blue Tower

18%

26%

14%

7%

4%

2%2%

15%

8%1%


2%2%

Total sqm. 2015/2016 80.600Total sqm. 2017/2018 48.580

2015


2015

Supply.

The demand is increasing and the vacancy is almost zero. There are still to wait for the transformation process of thecompanies in its handover from the houses and buildings without services for new corporate complexes, accompanied by thegeneral of the development of shopping centers and hotels.general of the development of shopping centers and hotels.

Rent

We noticed an increase in the lease prices, supported by the lack of vacancy of theoffice market.

This generates that each lease contract renegotiation which it is carried out, the tenantis obliged to increase the value of the lease contract. The new projects to come(WTC, Blue Tower and Cenit), mark reference in the market and have put the roof on

10

20

( , ), pthe USD20 per m2 and a floor in the USD15 per sqm (asking price)

In some cases and fearing that demand renew their current contracts and the companies not to go out in search of the new alternatives, which offers the market, the supply may tend to reduce lease prices seeking greater occupation by reducing the expected cap-rate. So, that in the end of approx one year, we are going to have a healthier market with respect to the vacancy.

0

101214161820

02468

10

Vacancy & absorption

Today we have to insist with a vacant almost null .

Absorption in these moments is complete. While demand still do not dare to subscribe lease contracts prior to the termination of the buildings the square meters that are finished are absorbed


contracts prior to the termination of the buildings, the square meters that are finished are absorbed immediately. We must consider that the amount of meters is not significant with respect to which comes by the end of 2015 and until 2017.

2015


2015

Projects location

Land value

Location Area approx.sqm USD sqm approx.

Aviadores c/ Sta. Teresa 2.300 $ 1.300

Aviadores y Cervera 2 000 $ 1 300

Approximate market land values

Aviadores y Cervera 2.000 $ 1.300

Mariscal y Rep. Arg 1.700 $ 1.700

Aviadores zona Sheraton 22.000 $ 1.600

Av. España 10.800 $ 800


Aviadores c/ San Martín 2.700 $ 1.500

2015


2015

Land sales values per sqm. (usd)

$ 600

$ 800

$ 1.000

$ 1.200

$ 1.400

$ 1.600

$ 1.800

$ 0

$ 200

$ 400

$ 600

Aviadores c/ Sta. Teresa

Aviadores y Cervera

Mariscal y Rep. Arg

Aviadores zona

Sheraton

Av. España

Aviadores c/ San Martín

The trend is showing an increase in the value of the land. This is true not only in the strategic areas of the main corridors, but you are seeing a similar situation in what could be called a spill toward secondary areas.

Aún se pueden encontrar en estos corredores tierras para desarrollo lo que permite aún un crecimiento mayor pero asimismo un control de los precios de venta.

The increase in land values, causes an increase in the values of the lease prices market, due to that for the most part, the players of this type of product are investors . The increase of the land value results in an increase of the final value of the square meter built and therefore for the purposes of maintaining the same Cap- rate for the project, a higger lease price .

Sale price for projects in USD per sqmSale price for projects in USD per sqm.

Torre de las Américas 1.600,00

Sky Center 1.700,00

Juan XXIII 1.500,00

Aviadores I y II 1.500,00

Cenit 1.800,00

Torre de las Américas 1.600,00

Sky Center 1.700,00

Juan XXIII 1.500,00

Aviadores I y II 1.500,00

Cenit 1.800,00


Citabella 1.500,00

1.600,00

Citabella 1.500,00

1.600,00

2015


2015

Market lease prices evolution

10

15

20

Usd per sqm.

0

5

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Asunción office market 2015

Real Estate

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