Newmark Knight Frank: 50% uptick in coworking in Latin America

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

Mexico City recorded 50% of corporate spaces for coworking in Latin America during the last quarter of the almost 590,000 square meters (m²) incorporated into the region, which adds up to an inventory of 23.95 million m², reveals Newmark Knight Frank (NKF) Latin America.

According to information shared by the real estate consultant, the factors that have contributed to this expansion in Latin America are diverse, such as the exponential growth that the coworking format or collaborative workspaces are registering, as well as new work schemes.

“Coworking companies are going strong in Latin America where they have become one of the main tenants in the capitals of the region, with a voracious expansion strategy. This format has been successful because, among other reasons, it responds to the growing number of freelance workers, entrepreneurs, and consultants, and is proposed as an alternative to the traditional office scheme.

“In many cases, coworking spaces move beyond their initial purpose, transforming into places of exchange, socialization, offering instances of training, networking and relaxation,” said Nevardo Arguello, Executive Director of Global Corporate Services (GCS) of NKF Latin America.

The manager details that Mexico City faces great challenges, despite having a Class A inventory of 7 million m², maintains its growth rate with the annual income of 500,000 m² of new buildings. The availability rate grew to 15.8%, which represents 1.1 million square meters available.

Most of this space is located within the North corridors with 271,000 m² (25%), Santa Fe with 192,000 m² (17%) and Polanco with 150,000 m² (13%). Net absorption during this quarter registered a negative level of -61,137 m², something that had not been seen since the third quarter of 2017.

On the other hand, the total market activity was 191,031 m², similar to the previous quarter, with which the annual accumulated activity reached 391, 242 m².

Nevardo Arguello added that Monterrey is the submarket with strong dynamism and upward absorption, where the launch of new office projects extends throughout the Metropolitan Area and the absorption has been gradually surpassed during these last three quarters.

Meanwhile, Guadalajara presented indicators of good absorption and quarterly growth has been monitored in the inventory of class A offices of 8.6%, with 659, 558 m².

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

Join us November 12-15 for the Property Portal Watch Conference Madrid 2019.