Chile. A report published by GPS Property Solutions on the behavior of the office market in Chile during the last quarter of 2014, revealed that the occupancy level for premium office spaces decreased during this period until reaching its lowest level since 2007, the year from which the firm makes these reports.
This would lead to a decrease in the construction of new properties of this type in 2015. According to the data provided by GPS Property Solutions, the construction would present a decrease of 48%, going from 236 thousand square meters in 2014 to about 120 thousand square meters in 2015.
The vacancy rate for premium offices in 2014 was 8.7%, a high figure but lower than expected by GPS researchers.
Francisco Rojas, manager of the GPS office area, explained in statements to the Chilean portal Diario Financiero that this rate is high considering that 5% is the maximum acceptable for a mature market.
"It is estimated that during 2015 vacancy will remain at high levels, but without large increases as a result of a moderation in the speed of development of new projects," added the GPS representative.
This would also be reflected in a decrease in rental prices. "A decrease in the offer price is expected in the different brokers, this phenomenon has already been observed in recent periods, and takes on great importance at the time of closing a contract, the high offer gives negotiating power to customers allowing the closing of contracts below list prices," said Rojas.
