We present the results from the corporate market report in Medellín, analyzing the dynamics of this sector during the first quarter of 2023.

The report reveals that El Poblado is the corporate sector experiencing the most dynamism, holding 50% of the total inventory. It is followed by Las Palmas, which captures 11% and has evolved into an area for the development of Class A+ and A projects in recent years. The majority of the supply is concentrated in Medellín, accounting for 64%, while the remaining 36% is distributed across other municipalities in the Valle de Aburrá.

This market report for the office sector in Medellín highlights several significant aspects observed during the first quarter of 2023:

• Medellín concluded the year 2022 with a cumulative office inventory of 851,106 m², showing no variation compared to the previous quarter. Projections for 2025 anticipate a cumulative inventory of 927,512 m², signifying an 8.2% increase.
• In the first quarter of 2023, the total availability decreased by 8.6% compared to the previous quarter, translating to 73,195 m² available. While the availability indicator remains high, there is a downward trend. It is expected that the placement speed will decrease this year due to the city’s limited supply.
• During this period, there was a net cumulative absorption of 6,469 m², marking a 64% increase compared to the previous quarter. This growth is attributed primarily to the occupation of areas by BPO, call centers, and sectors such as finance and pharmaceuticals.
• The average turnover rate recorded was 13.6 months, decreasing by 1.2 months compared to the previous quarter. This indicator reflects a reduction of more than 124 months compared to the close of 2020.
• The corporate market in Medellin set a trading price range, with an asking price of $61,840 per square meter (an increase of 1.3% compared to the previous quarter and 9.6% above the close of 2021) and a closing price of $52,750, reflecting a 7.9% increase compared to the close of the previous quarter.

“The corporate sector will have a trend in designing new offices and redesigning existing ones for 2023, which are evolving into workspaces aimed at talent retention and motivating the return to in-person work,” commented Gustavo de la Torre, LATAM Real Estate Director at MTS Consulting + Management.