MTS Consulting + Management presents the results of the corporate market report where the dynamics of the office market in Bogota corresponding to the closing of 2022 is analyzed.

The report denoted that the corporate sector will see a price recovery by 2023, which has been occurring since the second half of 2022, but without reaching pre-pandemic levels, this was mainly due to factors such as low availability in buildings especially of high specifications and the entry of new projects to the inventory.

“We are seeing that, for this year, we will have a significant reduction in the licensing of new corporate and retail projects, this is mainly due to high interest rates, the high price of the dollar and therefore prices in the construction sector, which will affect future inventory reductions.” commented Ana Maria Mejia, LATAM Market Leader for MTS Consulting + Management.

The office markets report also revealed other important aspects of the sector:

• At the close of the fourth quarter of 2022, Bogotá presented a cumulative inventory of offices of 2,390,019 m2, growing by 0.5% compared to the previous year’s closing.
• For 2025, it is projected that the inventory will increase by around 120,997 m2, representing a 4.8% increase.
• For this quarter, the total supply of the office market closed at 488,865 m2, decreasing by 1.8% compared to the close of 2021. The significant reduction was evidenced in delivered buildings (vacancy), closing at 297,925 m2, decreasing by 23% compared to the previous year’s close, mainly due to absorptions in Salitre Calle 26, Chicó, Santa Bárbara, and Nogal.
• The average rental price in the city stood at $67,530/m2, increasing by 15.1% compared to the registered value at the close of 2021. For Class A+, the average price closed at $84,650/m2, and for Class A, it was $67,600/m2.

Finally, it was evidenced that 61% of the city’s supply is in finished projects, 38% is under construction and only 1% is in pre-sales. This dynamic is also due to the behavior of market factors mentioned above, such as the rise of the dollar, high interest rates and the increase in the cost of raw materials in the construction sector.

Ana María Mejía Ruiz – LATAM Consulting and Market Intelligence Manager at MTS Consulting + Management