Costa Rica: Real Estate Office Market
Wednesday, November 30, 2011
An NAI Costa Rica Report for the third quarter 2011, gives analysis categorised by supply, demand and prices, and an evaluation of new projects.
Extract from the report:

The office property market is stable with an availability rate of 8.9%, up 1.1% from last quarter, due to the steady inflow of new office centers to the market.

Investment projects to be initiated or already in motion demonstrate that there is more movement in the credit sector and there are several major projects under construction. Banks are more willing to invest, contrary to what was seen 24 months ago where investment was totally paralyzed.

Currently there are approximately 130.000m2 of office projects under construction of which there is an occupancy rate of about 33% and almost 430.000 m2 are in the planning process, which could begin and end in the next three to four years depending on demand.

The office property market shows stability for the second half of 2011 because, despite the entry of a few new office centers, availability rates have remained constant at a level where the creation of inventory goes hand in hand with the growth of the economy.

Over the next 2 years the office market will face a critical period, because never before have so many projects been seen in the same period, this will be the largest m2 entry in the history of the country.
 
More on this topic
Office Rental: Market Correction
March 2021
The oversupply of office space and changes in the dynamics and ways of working of companies have led the office rental market to a corrective or adjustment phase, which is mainly evidenced by the downward pressure on rental prices.
At the beginning of 2021, CentralAmerica
Data
expected that in the coming years, 4 out of 5 companies will bet on hybrid work modalities, which include face-to-face and remote activities. This phenomenon will force office supply
to adjust to the new market conditions
.
Offices: Changes in Market Conditions
August 2020
Since office construction is still active and could enter a phase of over-supply, combined with the strong increase in telecommuting, the market could face a contraction in the coming months.
Because of the spread of covid-19, governments in Central America have decreed strict home quarantines. This scenario
boosted the implementation of telecommuting and forced companies to adapt to a new form of operation
.
Costa Rica: Saturation of Office Buildings Indicated
September 2016
It has been reported that the vacancy rate in the office segment in the real estate market now exceeds 10%.
Nacion.com reports that
"... an analysis by Colliers International shows that the office market is undergoing a period of greater caution, since the vacancy rate is above the 10% threshold for defining market saturation."
Mid Year 2010 Costa Rica Real Estate Report
August 2010
At Mid-Year 2010 the Costa Rican market is recuperating well. The office market is showing a steady recovery although the overall vacancy rate is 10.6%.
The office market is showing a steady recovery although the overall vacancy rate is 10.6%. It rose that high due largely to blocks of space becoming available in the highest prestige complexes. Given that it is highly desirable space, it should be absorbed in a short period of time – within 6 to 9 months. Approximately 75,000 m2 of 2010 and 2011 inventory are under construction and should finish within the next 10 months. Prices should continue stable for at least two more quarters; no softening of lease rates is foreseen when buildings currently under construction come on line. Demand should keep pace.
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real estate
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NAI Costa Rica
Countries
Costa Rica
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