This office market report for Medellín highlights several crucial aspects observed during the last quarter of 2022:
- Medellín concluded 2022 with a cumulative office inventory of 851,106 m², showing no variation compared to the previous quarter. A cumulative inventory of 936,861 m² is projected for 2025, representing a 9% increase.
- In the last quarter of 2022, the total availability decreased by 2.9% compared to the previous quarter, settling at 9.5%, meaning 80,462 m² were available. Although the supply indicator remains high, there is a downward trend, mainly due to the introduction of new inventory into the corporate market in the capital since the beginning of the year. El Poblado, including Ciudad del Río, presents the highest office availability at 51%.
- For the fourth quarter of 2022, a cumulative net absorption of 55,001 m² was recorded (2,313 m² for the quarter), increasing tenfold compared to the total accumulated at the end of 2021. This is due to a rise in demand for square meters in sectors such as BPO, Call Center, and coworking.
- An average turnover rate of 12.4 months was recorded, decreasing by 2.0 months compared to the previous quarter. This indicator reflects a reduction of more than 129 months compared to the end of the previous year, settling at 14.7 months by December.
- The corporate real estate market in Medellín established a price negotiation range, ranging from an Asking Price of $61,120 per square meter (an increase of 0.3% per square meter compared to the previous quarter and 0.6% above the closing of 2021) to a Closing Price of $48,650 per square meter, marking a 10.3% increase compared to the end of the previous year.
” In 2023 and in the coming years, this sector will show a trend in the recovery of prices, which have been on the rise since the second half of the previous year, mainly due to the entry of buildings with high specifications and in strategic locations,” said Gustavo de la Torre, LATAM Real Estate Director, at MTS Consulting + Management.
Ana María Mejía – LATAM Consulting and Market Intelligence Manager at MTS Consulting + Management
