The need for better services made the offices start migrating towards neighborhoods as Buceo and Carrasco
Better services, parking lots, security, technology, better views, strategic location and variety in the gastronomic offer are some of the aspects companies –both national and international- are lookingfor when establishing their offices.
As a consequence, and in order to meet these needs, companies started to migrate from downtown towards Buceo (World Trade Center), Carrasco, Punta Carretas and Pocitos.
Another aspect to highlight is that, thanks to technological advances, banking operations can be now made online, and settling close to banks is no longer a must. According to Architect Eduardo André Zorrilla, Head of Estudio EAZ, Downtown and Old City “are history”.
“There is a tendency toward moving near trendier neighborhoods. Nowadays, Buceo and Carrasco are the most centric spots of the city” he said. Among other reasons, André said companies want their employees to work in “nicer places” since that is part of what the company offers. “Internet enables us to establish offices everywhere” concluded the architect.
The business pole surrounding the World Trade Center is mainly chosen by multinational corporations, even though there are also local companies. The four towers of the WTC cover 75 thousand square meters, but if we include the Free Zone, the surface increases to 93 thousand square meters.
Regarding the rate of occupancy, the entrepreneur and director of Estudio Luis E. Lecueder, Carlos Lecueder, explained to Café&Negociosthat just two floors of the first three towers are empty, while the fourth –which opened last year- is reaching 50% of occupancy.
In case of the free trade tower, the occupancy level is now around 75%. "In the offices world, the process of decentralization began during the 90s, when many offices started to move towards different areas of the city" said Lecueder, and added that the process became established when the WTC was born.
In case of Carrasco, the main attraction is the proximity with many executives´ homes and the access to the airport, apart from the beautiful landscapes of the suburbs. An example of a modern building in Carrasco is Art Carrasco, a project by Cagnoli Architects which opened its doors by mid 2013.
The two buildings are located in Avenida Italia and Barradas, and occupy a surface of more than 7.500 square meters, with 40 offices and six shops. The premises have security systems, access control and a system that enables to reuse rain water.
Too Much Supply
Specialists interviewed by Café&Negocios agree that although there is a modernization phenomenon of the offices market in Montevideo, this market is currently swamped, since there is too much supply for the current demand.
The architect Gerardo Viñoles, consultant of Corporate Real Estate said that while in 2012 there were 154 thousand square meters of A and A+ Class Offices, the number rose to 182 thousand last year.
A+ category makes reference to the premium section of offices, which main characteristics are the easy access, three high-speed elevators, 24-hour surveillance, among other services. A Class buildings may have been built 20 years ago.
The Real Estate expert, Julio Villamide, believes that the hundreds of square meters destined for the construction of offices during the last few years "swamped" the market. "The process started in a small market and that is why it got stuck".
When making reference to prices in the market, Villamide said the square meter of monthly rent for an office is around $ 15 and $18 dollars in downtown. In WTC , the price rises to $ 20 and $ 25 dollars, while in Carrasco the prices are significantly higher.
Wide Variety of Options
Isidoro Kosak, Head of Kosak Inversiones Inmobiliarias, believes there are three kinds of clients. One includes the multinational companies coming from abroad to establish their offices in Uruguay. These companies do not look for good prices, they need to be located in a "sophisticated" place and they choose WTC. The second group includes companies that look for good prices and end up establishing their offices near the WTC.
Lastly, some companies prefer to get established in huge houses and that is why they choose Carrasco, Punta Carretas and Pocitos.
María Fernanda Acosta y Lara, Sales Manager of Inmobiliaria Promociones y Servicios, believes that executives choose Carrasco to settle their workplaces in order to be near their homes. "People do not want to spend two hours in their cars coming and going from Carrasco to Downtown and vice versa. If you work in Carrasco, you may have the chance to have lunch at home, or go to the gym and then continue working".
However, there are certain companies that in spite of moving from Downtown decide to leave an office near the banks, customs offices and Courts, as the legal firm Posadas, Posadas &Vecino did.
The Perspective
According to specialists, the tendency towards decentralization of offices will continue. However, Viñoles believes the construction of offices is going to stop. Kosak also believes the construction won´t continue, since the market will be swamped for the next five years.
