According to the most recent Prime Watch update, in the office market, “the little (quality) supply available continues to reduce the activity of companies that often remain in their respective locations because they have no alternatives. In addition to this component, there is an effective decrease in demand which should translate into a stabilisation of rents”.
The report also highlights the dynamics of the sector, which “continues to be on the rise”, which translates into the promotion of several projects that are under construction, but are already partially occupied, “which proves that this imbalance between demand and supply continues reinforcing the importance that pre-leases continue to have”.
In the logistics segment, the “diagnosis is identical”, but in this industry, the take-up volume is “much more pronounced” - in the 1st half of this year, it had a 93% higher performance, compared to the same period last year.
In retail, the study points to a reversal of positioning, in which “in-person is recovering ground”. Larger spaces that allow greater interactivity have been a constant in street commerce and shopping centers, in addition to a continuous increase in food retail, which continues to invest in its proximity network, according to the consultant.
The performance of the investment market has been positive and recorded 691 million in turnover. However, Prime Watch points to a “drop in activity of around 30% by the end of 2023”.
“Despite a first semester in which activity slowed down, whether in investment or office placement, we are convinced that at the end of the year, there will be an acceleration in business volume that will allow this drop to be compensated. This performance at the end of the year should extend to the beginning of 2024, taking into account the stabilization of some uncertainty factors that limited activity, such as inflation or interest rates”, comments Jorge Bota, managing partner at B.Prime, cited in a statement.