RIO DE JANEIRO OFFICE MARKET REPORT OFFICE MARKET REPORT CLASS A + A AND AVAILAILITY RATE INCREASES 8% IN HIGH STANDARD MARKET OVERVIEW The Rio de Janeiro office market is moving at slow pace during 2015. Even with 33% less quantity on A + A area delivered, when compared to the same period of previous year, presents 8% higher availability rate. In class properties, this discrepancy is shorter, only 2%, given the lack of delivery of new areas in the last two years. The current inventory of Rio de Janeiro is 1,340,000sqm in A + A buildings, being 60% concentrated in Colliers Centro region, which corresponds to 793,000sqm. followed by arra da Tijuca region, with 269,000sqm, equivalent to 20%. That was the only region that received new inventory in Q3 2015, 28,000sqm n high standard segment. The class properties totaled 814,000sqm, also concentrated in Centro, in proportion of 60%, corresponding to 490,000sqm. Colliers region arra da Tijuca presented an excellent result of gross absorption (lease area) in Q3 2015, 14,000sqm, influenced by returns in other areas of the city, net absorption (lease less returns) was only 5,000sqm, in class A + A properties. Just over a year, the class buildings featured negative net absorption, the result was 8,000sqm, mainly influenced by returns in the regions Colliers Centro and otafogo. The accumulated net absorption during the year 2015 is more favorable for the high standard properties, 4,000sqm against 11,000sqm in. With the delivery of new area totaling 28,000sqm in high standard class A + A properties and net absorption of only 5,000sqm, the availability rate increased from 23% to 27%, with the worst rates in Zona Norte (), Porto (57%), Flamengo (45%) and arra da Tijuca (31%), and the latter, despite the great gross absorption, was burdened by the delivery of new projects. In class buildings, the availability rate is 12%. Zona Norte region also shows availability rate and Flamengo and otafogo, 17% and 16% respectively. www.colliers.com.br
EVOLUTION OF EXISTING INVENTORY, NET ASORPTION (THOUSAND SQM) AND AVAILAILITY RATE (%) Y YEAR 1,226 1,340 A+ A 1,045 16% 21% 27% 107 87 4 2013 2014 2015 814 814 814 8% 12% 29 21 11 2013 2014 2015 Availability Rate (%) Evolution of Net (thousand sqm) Evolution of Existing Inventory (thousand sqm) EXISTING INVENTORY, NET ASORPTION (THOUSAND SQM) AND AVAILAILITY RATE (%) Y REGION 793 413 57% A+ A 269 31% 114 15% 25% 8 7% 45% 37 35 6% 81 3 arra da Tijuca otafogo Centro Copacabana Flamengo Leblon / Ipanema Porto Zona Norte 490 131 52 51 16% 12% 17% 20 17 47 3% 5% 0% 6 arra da Tijuca otafogo Centro Copacabana Flamengo Leblon / Ipanema Porto Zona Norte Existing Inventory (thousand sqm) Availability Rate (%) COLLIERS INTERNATIONAL P. 2
INVENTORY UNDER CONSTRUCTION Yet for 2015, it is expected the delivery of 36,000sqm in high standard projects, concentrated in Centro and class buildings, 13,000sqm, in Porto and Flamengo regions. Thus, it is expected an inventory A + A: 1,376,000sqm and : 827,000sqm until the end of the year. 2015 2016 2017 49 322 70 Total Under Construction A+ A: 428 thousand sqm : 13 thousand sqm thousand sqm AVERAGE ASKING LEASE PRICE The average asking lease price in class A + A properties is R$ 109.00/sqm and : R$ 99.00/sqm. Colliers region Leblon / Ipanema has the biggest asking price: R$ 231.00 in A + A and R$ 200.00 in. Averange Asking Lease Price Class A by Submarket (R$/sqm/month) Averange Asking Lease Price Class by Submarket (R$/sqm/month) Averange Asking Lease Price Class A RJ (R$/sqm/month) Averange Asking Lease Price Class A RJ (R$/sqm/month) P. 3 COLLIERS INTERNATIONAL
STATISTICS TALE Y REGION A + A A+ A Inventory Availability Availability Rate Net Gross Construction Project Average Price arra da Tijuca 268,651 82,230 31% 13,876 17,116 55,804 16,200 R$92 otafogo 114,115 17,571 15% 3,704 R$187 Centro 793,199 196,633 25% 1,768 3,825 157,071 45,059 R$108 Copacabana 8,288 618 7% R$150 Flamengo 37,153 16,840 45% 2,409 2,409 4,400 R$114 Leblon/Ipanema 34,389 2,174 6% 1,655 1,655 R$231 Porto 81,152 46,182 57% 10,992 210,154 542,383 R$108 Zona Norte 3,356 3,356 Total 1,340,305 365,605 27% 5,012 25,005 427,428 603,642 R$109 STATISTICS TALE Y REGION Inventory Availability Availability Rate Net Gross Construction Project Average Price arra da Tijuca 52,145 1,440 3% 622 622 R$ 120 otafogo 130,552 20,337 16% 2,040 R$ 133 Centro 489,914 56,690 12% 5,933 540 R$ 79 Copacabana 51,491 8,740 17% 350 Flamengo 20,074 1,922 334 5,297 R$ 130 Leblon/Ipanema 16,600 875 5% R$ 200 Porto 47,552 0% 7,839 R$ 63 Zona Norte 5,662 5,662 Total 813,989 95,666 12% 8,035 1,162 13,136 R$ 99 COLLIERS INTERNATIONAL P. 4
OPORTUNIDADES COLLIERS Edifício Comercial Porto 130 Lease Porto Maravilha RJ Total Area: 9,089 sqm Ref: 2023 Edifício Humaitá Corporate Lease Humaitá Rio de Janeiro RJ Total Area: 8,279 sqm Ref: 2030 Colliers International More than 482 offices in 62 countries in 5 continents USA: 140 Canada: 42 LATAM: 20 Asia: 38 ANZ: 157 EMEA: 85 US$ 1,95 billion in annual revenue More than 104 millions sqm under management More than 13,500 profissionals CONTATOS NO RASIL REAL ESTATE MARKET VOCAULARY. : Amount of sqm occupied the previous period. Development Category: Real estate properties are classified as A+ A and. Stock / Inventory: Amount of usable constructed area in square meters. Availability Rate: Ratio between area available are and total area. Ceilings Height: Space between the finished flooring and the 1st strucutre ceiling interference. uildtosuit: Costumized construction COLLIERS INTERNATIONAL DO RAZIL REAL ESTATE CONSULTANCY FOR INDUSTRIAL, OFFICE, RETAIL, LAND, RURAL, HOTELS, HOSPITALS AND EDUCATIONAL INSTITUTIONS Real Estate Investments Tenant and Landlord Representation Leaseing, Acquisition and Sale Advisory and Disposals for real estate assets and/or portfolios uildtosuit and Sale & Leaseback Operations Lease Administration and Property Management Real Estate Valuation for Leasing, Acquisition, Sale and Guarantee Market and TechnicalFinancial studies, Highest and est use studies Advisory for Investiment Funds and Private Investors São Paulo R. Olimpíadas, 205 04551000 Sao Paulo SP TEL +55 11 3323 0000 Campinas R. Dr. Sylvio de Moraes Salles, 95 13025160 Campinas SP TEL +55 19 3794 2300 Rio de Janeiro Av. Almirante arroso, 63 20031003 Rio de Janeiro RJ TEL +55 21 2524 4242 Recife Av.Gov. Agamenom Magalhães, 4.575 50070160 Recife PE TEL +55 81 3037 2222 Fortaleza Av. Dom Luis, 807 60160230 Fortaleza CE TEL +55 11 8171 2727 More information: RESEARCH AND MARKET INTELLIGENCE research@colliers.com OFFICE office@colliers.com Green Consulting for LEED Certification This document was prepared by Colliers International razil. All information contained in this document may change without notice. The Colliers International is a global, independent organization. This publication is copyright of Colliers International and / or its licensor. 2015. All right reservation Accelerating success. P. 5 COLLIERS INTERNATIONAL www.colliers.com.br