Colombia. With the aim of getting to know the region in greater depth, and the effects of each country's economy on corporate real estate markets, Ed Alegre, the newly appointed Executive Director for Latin America of Colliers International, was in Colombia as part of his tour of the region.
He took the opportunity to talk about the good moment that the country is going through in this sector, and also about the current panorama of the region in terms of supply, demand and financing options in the field of offices, shopping centers and industrial parks.
"Colombia is an anchor country, in addition to being one of the main economies in the region for the growth, service and way of serving customers; which has led Colliers International Colombia to be a leading organization in Latin America."
Likewise, Mr. Ed Alegre also referred to the current moment that the country is experiencing, which, like many others in the region, is going through a process of political and social transformation that goes beyond the economy. "These processes are putting Colombia in a unique position within the region, and where you see great hopes that suddenly did not exist several years ago," emphasized the director, who was quite optimistic that in the short term the country can, finally, "take the place we all expected at the regional level, and why not, globally."
For him, Colombia's growth has come hand in hand with the development of Latin America, mainly on the issue of supply and demand for industrial parks and offices: "In the past, for example, almost all office buildings were built in the condominium style; they pre-sold them because there was no financing. The offices were small, because they could sell each buyer an entire floor, and the result was quite complicated at the level of the multiplicity of owners, design and functionality. And this is changing, as we see how the modern Class A building is being consolidated, the highest category in office buildings, whose owner on many occasions is now an investment fund."
Likewise, the director also said that the development of industrial parks will continue and will accelerate. "We're going to see industrial parks that are becoming more modern, more functional, and that will attract more corporations that before, perhaps, did not find the spaces with the standards that were found in the United States and Europe."
As for shopping malls, Latin America has not yet suffered the true effects of the internet and online shopping, which have transformed the habit of consumers, and which, in the case of North America, have hit many malls hard. "In several countries in the region, shopping malls are still in full swing, especially in smaller cities, where historically there has been a lack of supply from this sector."
Despite this growth, for Ed Alegre it is clear that there are still two major differences between the markets of Latin America and the most developed countries: "One is the scale. The product in developed countries is much larger, which justifies more and better investments that attract global investors. And in Latin America the scale of the market remains relatively small. The second difference corresponds to the availability and financing options, which are not as varied as in other countries, although more and more funds and banks are seeing the real estate sector as an area of considerable investment potential, which has generally not been very high in the past. "
"Don't be afraid to explore new investment and development vehicles; new innovative ways of working the markets, because at the end of the day that is what will keep them as leaders in the sector." Mr. Ed Alegre advised the different actors of the Colombian real estate market.
Ed Alegre, Colliers International's Executive Director for the Latin America region, commented, "Colliers represents the best combination of being a global corporation and having an entrepreneurial business culture, which sets it apart from the rest of the competition." "We like our customers, we like the people we work with and we are entrepreneurs. That makes us much more flexible, more efficient, and frankly more fun."
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