In the first half of 2024, the market showed an uptick in demand backed by flight-to-quality movements in complexes with robust amenities, the arrival of new companies and consolidation of operations into a single site.
Office Insight San Jose Costa Rica, Q2, 2024
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Despite production exceeding FY 2023 figures, the vacancy rate dropped from 17.5% to 17.1%, driven by Roche's 32,800 sqm Built-to-Suit in a class A+ property. This flight-to-quality and expansion movement favored net absorption as the pharmaceutical company expanded its office footprint in San Jose by 6x. Additionally, half of the 5,000 sqm formerly occupied by Roche in Ultrapark I are already leased. Also of note, Avenida Escazu's AE 301, another Class A+ property, leased 53% of its 12,000 sqm within four months of its delivery.
The number of new international tenants in Costa Rica is rising. However, the initial footprint has reduced due to budget cuts and hybrid work policies. According to CINDE, 79% of companies in Costa Rica operate under a hybrid scheme, above JLL's survey figure for Latin America (72%). Most employees attend the office two to three days a week, leading to peak occupancy in San Jose from Tuesday to Thursday. However, it varies by sector and company.