Colombia. During the second quarter of the year, the office real estate market in Bogota showed a positive and resilient dynamic, marked by a positive absorption of approximately 10,000 m² in several key corridors.
Likewise, the sector evidenced the release of initially projected areas, creating new opportunities in the face of the scarcity of efficient spaces in areas of high absorption, such as the Chico corridor.
According to Juan Carlos Delgado, Country Manager of Cushman & Wakefield in Colombia, "The slowdown in rental dynamics during the second period of the year has been offset by a growing intention to occupy in the short term, reflecting a continuous adjustment in the supply of the most competitive brokers." This industry trend aligns with the initiative of several developers to structure new real estate projects, driven by favorable conditions such as the gradual decrease in credit rates and a growing demand in strategic areas of the city.
As revealed by the Market Beat study by Cushman & Wakefield, the list rental price closed the quarter at COP 74,662/m²/month, with notable increases in submarkets such as Chicó, Nogal-Andino and Salitre, exceeding 8% in some cases. These increases are mainly due to the release of spaces with higher list prices, a trend that is expected to continue in the coming periods due to the low supply in certain corridors and the arrival of new buildings with high technical specifications.
As for the future outlook, the report projects that by the end of 2024 nearly 57,000 m² of new class A office projects will come into operation in Bogotá, mostly concentrated in Calle 100 (55%), Noroccidente (23%) and Nogal-Andino (12%). These projects will not only expand the inventory of high-quality offices in the capital, but will also be designed to adapt to new forms of hybrid work, promoting the well-being and productivity of their occupants.
With a total projected area of 757,752 m² currently off-plan, with delivery times spread over the next 7 to 10 years, and a significant concentration in areas such as Salitre (36%), Centro (22%) and Noroccidente (18%), Bogota is positioned as a dynamic hub for commercial real estate development in the region. Flagship projects such as Proscenio and Connecta 80, currently in the planning phase, are aimed at transforming the urban landscape and strengthening the business competitiveness of the Colombian capital.
"The prime office market in Bogota presents a dynamic and transitional landscape. Although it faces the challenge of higher levels of availability in some corridors, there are multiple possibilities for investment, development and occupation that can be capitalized on through innovation, sustainability, adaptation to new work trends and the urban planning vision that is being implemented in the city. Investors, users and developers who adopt these strategies can perceive the potential for growth and recovery of the market," said Juan Carlos Delgado.
Adapting to more flexible and sustainable working models is also driving the design of these new office spaces, with an increasing focus on energy efficiency and user comfort. In this regard, the real estate services firm highlights the importance of environmental certification and the integration of accessible technologies as key elements in these developments, which allows responding to current market demands and the expectations of modern companies.
In terms of availability and demand, the report shows a constant search for strategic spaces in the city, especially in consolidated areas in submarkets such as Nogal Andino, Santa Bárbara and Chicó, where infrastructure and connectivity are crucial for corporate occupancy decisions. This initiative leads to increased competition for the best spaces, as companies look to improve their location and work environment to attract talent and optimize operations.
The office real estate sector in Bogota is preparing for a dynamic and promising end of the year, with high growth expectations driven by innovation in design, response to new ways of working and a favorable economic environment.
