Rental rates monthly asking leasing rates per sq m

This preview shows page 8 - 10 out of 12 pages.

Rental Rates
Image of page 8

Subscribe to view the full document.

Monthly asking leasing rates per sq. m. vary mainly between UF* 0.11 – 0.14 (US$ 4.33 – 5.51). These rates do not include common expenses, which are generally equivalent to approximately 10% of the monthly rental rate. However, this semester there was a peak in rates between UF 0.09 – 0.23 (US$ 3.54 – 9.06) /sq. m., range explained by the number of square meters leased (the higher square meters leased, the lower rental rates). It is worth mentioning that there is no significant gap between rental rates for DCs and Warehouses. Both exhibit similar rates around the average observed, UF 0.13 sq. m. (US$ 5.12). Vacancy During the first half of 2016 vacancy reached 9.7%, increasing significantly compared to year end 2015 (7.1%). This correspond to approximately 290,000 sq. m. available for rent. This increase could be explained by the delivery of nearly 25,000 sq. m. entering vacant to the market, as well as a significant release of square meters in consolidated projects. The availability of spaces is mostly concentrated in recent developments, mainly in the South, North-West and West submarkets. The rental rate increase of Distribution Centers in the Santiago is mainly due to the rising prices of one of the major industrial developers in this sector. Retail Market Chile has a sophisticated retail sector. The trend over recent years has been towards consolidation and local companies dominate the market. Key players include D&S [now part of Wal-Mart group], Cencosud and Ripley. The Chilean retail sector caters to all levels of society: having a small luxury goods market for Chile’s upper class; a wealth of shopping malls and department
Image of page 9
stores catering for Chile’s growing middle class; and traditional street markets appealing to the tighter budget of the lower classes. Opportunities Consumer confidence has increased in 2010, following a drop-in sales in 2009 as a result of the global financial crisis. Retail sales in the first eight months of 2010 were up 15.8% on the same period in 2009. The National Chamber of Commerce (CNC) has predicted an increase of 13% over the whole of 2010. This increase reflects the growth in the Chilean economy as a whole (GDP growth is likely to be around 5.5% in 2010) and inflation (predicted to be around 3.5%) but can also be attributed to the base of comparison (2009 was a particular bad year, even though sales improved in the second half) and to the ‘extraordinary’ sales triggered by the earthquake in February 2010 (replacing damaged goods) and the World Cup (increase in sales of flat-screen televisions). Whilst the minimum wage in Chile is $172,000 pesos (approx. USD 360) per month net, Chile has a growing middle class. In the Metropolitan Region (Santiago), around 10% are ABC1. These individuals have an average family income of $2,866,000 pesos per month (approx. USD 5,900). In addition, the Metropolitan Region has 18.7% (circa 1,100,280 people) in the C2 category. The average family wage in this group is $1,073,000 (USD 2,200) per month.
Image of page 10
You've reached the end of this preview.
  • Fall '14
  • LUISLOPEZ

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern