As Flexible Workspace Centers Grow In Latin America, Workstation Rates Are Down And Vacancy Rates Are Up Due To Covid-19, According To New Report From Workspace Innovation Firm The Instant Group

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Oct 27, 2020, 11:32 ET

MIAMI, Oct. 27, 2020 /PRNewswire/ -- Mexico City is the largest flexible office market in Latin America, with 11 percent of the market share by number of centers, while Buenos Aires is the most expensive, with a cost-per-desk of $570, according to a new report, The Growth of Agile Workspace: Latin America, by global workspace innovation firm The Instant Group.

Over the last decade Latin America has had a 230 percent growth in supply, compared to the 196 percent growth in the U.S. in the same period. However, market rates have been on the decline for the past two years. In 2019, an increase in supply pushed down workstation rates, and in 2020, Covid-19 resulted in rent cuts as operators try to retain clients and fill vacant space. Currently, rates are at least 20 percent reduced and as much as 70 percent reduced from some operators as part of a long-term engagement strategy to retain clients.

City-by-City Snapshot 2019-2020

Mexico City: 238 centers with an average monthly workstation rate of $336 and 23 percent market growth.
São Paulo: 170 centers with an average monthly workstation rate of $480 and 11 percent market growth.
Bogota: 140 centers with an average monthly workstation rate of $302 and 21 percent market growth.
Buenos Aires: 81 centers with an average monthly workstation rate of $570 and 23 percent market growth.
Santiago: 80 centers with an average monthly workstation rate of $356 and 10 percent market growth.
Monterrey: 77 centers with an average monthly workstation rate of $300 and seven percent market growth.
Lima: 66 centers with an average monthly workstation rate of $337 and 18 percent market growth. Inquiry levels in Lima were up 64 percent in the first half of 2020 compared to the first half of 2019.

The full report may be found here.

About The Instant Group
The Instant Group is a workspace innovation company that rethinks workspace on behalf of its clients, placing nearly 8,000 companies a year in flexible workspace such as serviced, managed or co-working offices. Its listings' platform www.instantoffices.com hosts more than 14,000 flexible workspace centers across the world and is the only site of its kind to represent the global market, providing a service to FTSE 100, Fortune 500, and SME clients. http://www.theinstantgroup.com

SOURCE The Instant Group