The Real Estate Market

Commercial Market

COMMERCIAL REAL ESTATE

Commercial properties led a direction similar to residential real estate values but somewhat less aggressive. Although current closing values are between 20 and 30% lower than in December 2001, there has not been as much sales activity as compared to the residential sector. Pricing is firm, probably the result of space being held by relatively fewer and powerful owners unwilling to let go of their properties at lower values. Naturally, this is not a rule as we have found there are many commercial properties priced reflecting current lower rental values which are at approximately 40%, in dollar terms, of 2001 levels. Demand for office space is currently focused on high-end units. Vacancy rates are down dramatically to 7.61% from 24.96% in 2003. Pricing is up from 2002 lows settling at an average U$S 10.69 per meter per month, for top areas such as Catalinas, Puerto Madero, Plaza San Martin and Plaza Roma, all located within the downtown core. Total meters absorbed in downtown BA during 2003 was 136.000. 2004 is expected to exceed 150.000 meters.