This, along with reduced demand, Canada Goose online will

Brazil commercial rents to fall on excess supply

SAO PAULO, Dec 9 (Reuters) Rental prices for Brazilian commercial real estate are set to decline in 2014 due to canadagoosejackets7v excess supply and declining occupancy rates, analysts said.

Prices in Sao Paulo, Brazil biggest market for office space, have fallen 8.8 percent over the first nine months of this year, compared with an average 12 percent compound annual canada goose outlet toronto factory growth rate between 2007 and 2012.

The slowdown should extend into next year as supply continues canada goose clearance sale to rise, analysts said. In the fourth quarter of this year another 205,000 square meters canada goose clearance of office space will become available in canada goose outlet store locations Sao Paulo central business districts, about 2.3 times the average of the last four years for the quarter, according to estimates from global real estate canada goose store firm Cushman Wakefield.

estate firms have already had to renegotiate rents in order to reduce pressure on vacancy rates, cheap Canada Goose said Marcelo Canada Goose Outlet de Costa Santos, vice president of capital markets valuation and advisory at Cushman in Sao Paulo.

Periodic mismatches buy canada goose jacket between supply and demand are typical of the real estate industry, where new buy canada goose jacket cheap developments often take years to Canada Goose Jackets reach completion.

sector cyclicality is typically driven canadian goose jacket by alternate periods of over and under supply, and we believe Sao Paulo city could be entering the decline part of the cycle, Credit Suisse Securities analysts led by Nicole Hirakawa wrote in a recent report.

Cushman estimates that new buildings delivered between 2013 and 2015 canada goose coats will account for almost 60 percent of available corporate office stock in Sao Paulo in 2015, ahead of Mexico City, Santiago and New York.

significant number of projects will be completed in Sao Paulo over the next 12 months. This, along with reduced demand, Canada Goose online will drive up vacancy and exert downward pressure on pricing in existing buildings until 2015, Maria Sicola, head of research for the Americas Canada Goose Online for Cushman, wrote in a global report released earlier this month.

Cushman expects vacancy rates in Sao Paulo to close the year at 17.5 percent, rising to 21.3 percent in 2014 and 23.8 percent in 2015.

Not everyone sees a decline in rental rates as a symptom of oversupply.

Claudio Bruni, chief executive of leading Brazilian developer BR Properties SA, pointed to cautious demand due to the macroeconomic situation.

Bruni said prices at the company were well protected this year, hovering around 150 reais per square canada goose black friday sale meter for triple A quality properties in Sao Paulo, above the average of 133.5 reais in the third canada goose replica quarter and Canada Goose Coats On Sale 146.4 reais in the fourth quarter last year.

view is that the Sao Paulo market presented Canada Goose sale good demand for space from July on, 2018 canada goose outlet principally in the regions in which we operate, Bruni said.

Rio de Janeiro will also be affected by an increase in supply canada goose deals in coming years, canada goose store according to Credit Suisse Hirakawa, who forecasts an up to 70 percent increase Canada Goose Parka in the inventory of high quality office space in the city from now until 2015.

Hirakawa noted canada goose coats on sale that while many developments in Sao Paulo are already nearing the delivery stage, many canada goose Rio properties will depend on the completion of the city port redevelopment project, which take many years to occur.

new supply should be mostly of high quality buildings, representing a threat for lower quality inventory, she wrote.

Tagged with:
Posted in Uncategorized

Leave a Reply

Your email address will not be published. Required fields are marked *