“We present the results of the Corporate Market Report, analyzing the dynamics of the office market in Bogotá during the first quarter of 2023.
“The report indicated that the corporate sector has shown a recovery in the market in both supply and price increases. However, demand remains 64% below the average presented in the first quarter of 2020 and 70% compared to 2019,” commented Ana María Mejía, LATAM Consulting and Market Intelligence Manager at MTS Consulting + Management.
The office markets report also revealed other important aspects of the sector:
- By the end of the first quarter of 2023, Bogotá presented a cumulative office inventory of 2,422,245 m², growing by 0.4% compared to the close of the previous year.
- For 2025, it is projected that the inventory will increase by around 134,539 m², representing a 5.3% growth.
- For this quarter, the total supply in the office market was 469,025 m², 4.2% less than the close of the previous quarter and 6.1% less compared to the close of 2021. The significant reduction is attributed to absorptions recorded mainly in the Salitre – Calle 26, Chicó, and Santa Bárbara areas.
The average rental price in the city saw an increase of 0.9% per square meter, reaching $68,150/m² compared to the previous quarter. For Class A+, the average price closed at $84,250/m², and for Class A, it was $67,850/m².
The report also revealed that 66% of the city’s supply is in completed projects, 33% in projects under construction, and only 1% is in the pre-sale stage. This dynamic is influenced by market factors such as high-interest rates and the increase in direct raw material costs. The supply led by the constructor has shown a decline since 2018, decreasing by 141%.
For the corporate sector in 2023, there will be a trend in designing new offices and redesigning existing ones. These spaces are evolving into workspaces aimed at talent retention, motivating the return to offices, employee well-being (wellness), and less personalized, more collaborative environments focused on reducing carbon footprint and sustainability.
“Investments are being made in the use of renewable materials, which may attract a consumer segment increasingly interested in environmental responsibility.” Gustavo de la Torre, LATAM Real Estate Director of MTS Consulting + Management.
