Important Headlines
📰 Developer Explains Challenges of Office to Apartment Conversions
(1) Zoning restrictions: to ensure schools and residential services can handle more residents. (2) Structural complexity: ceiling heights, plumbing, duct work are issues along with meeting dimensions required by codes. (3) High project cost: repurposing to office is often more costly than new construction. Most conversions of offices are to luxury apartments for this reason.
📰 Colombian Fashion Brand Expands Further Internationally
Cueros Velez, the Colombian leather goods fashion retailer, has a presence in Chile, Costa Rica, Guatemala, Mexico, Panama, Peru and El Salvador. The three new stores in 2023 were opened in Chile.
📰 Industrial Demand and Rentals are Up in Mexico 8% and 15%, Respectively
Industrial in Latin America is gaining on Asia due to cost competitiveness and delivery times. Mexico absorbed 18.3 million ft² (i.e., 1.7 million m²) of new space in the first quarter, 60% of which is concentrated in the eight markets of northern Mexico. This is 8% higher than gross absorption of the same period last year. 60.3 million ft² (i.e., 5.6 million m²) of new industrial space is under construction, an increase of 10% from last year. Industrial rental rates are 15% higher due to supply and demand dynamics, and peso appreciation.
📰 Bancolombia JVs with Patria Investments on Real Estate
The Brazilian Patria will control 51% of the venture and will start by managing Bancolombia’s FIC holdings, the second largest real estate portfolio in Colombia. Bancolombia owns 80% of the FIC and now 49% of the external management company.
📰 America Receives the Most Exports from Sao Paulo
Exports from Sao Paulo ranked: America (17%), China (15.6%), and Argentina (9.5%). 10 years ago, Argentina ranked #1. Commodities were the leading exported item comprising 25.7%, up from 17.2% 10 year ago. China was the largest importer in 8 regions in Brazil outside of Sao Paulo.
Reader’s Insights (Podcast)
This week we interviewed Munya Island, a CEO of a real estate fractionalization investment company focused on emerging markets. During these ~10-minute interviews, we always ask the same three questions:
What is one thing people don't understand correctly about your industry that they should? Why does it matter? [Industry question]
Describe a skill or trait that has aided you throughout your career. How did you discover and foster it, and how has it helped you? [Career question]
How do you stay consistently motivated and hungry to improve yourself and your business? [Philosophy question]
