CPN - December 2008 - (Page 22)

INDUSTRY PULSE INTERNATIONAL Paradox of Opportunity Potholes Stand in Way of Costa Rica’s Investment Appeal By Eugene Gilligan T he quality of Costa Rica’s He added that local universities breaks to encourage multinational zon.com Inc., Procter & Gamble workforce and its best-of- also create a labor pool armed corporations to open offices and Abbott Laboratories operate in the country. both-worlds location be- with college degrees. As Pan- there. Manufacturing also forms a facilities tween the United States and South czykowski said,“The human capi- vibrant sector of the country’s Notably, Intel Corp.’s $300 million manufacturing America attracts many major glob- tal to perform relatively highPLENTY OF PLACES TO STAY plant that accounts al corporations. But its infrastruc- skilled tasks is available.” for 20 percent of David Berger, managing ture and small population may cap (Costa Rica hotel pipeline as of the end of Q3 2008) Costa Rica’s exports. director of Latin America and Under construction 11 projects, 2,671 rooms its growth potential. The country’s staThe country benefits from fast- the Caribbean for NAI Global, Starting in next 12 months 6 projects, 931 rooms ble government progrowing Latin American econo- noted that call centers located In early planning stages 5 projects, 618 rooms vides a destination in mies, noted Binswanger Corp. Source: Lodging Econometrics which United Statesvice president Jim Panczykowbased corporations feel comfortski.“It gives them the opportuniable investing, Panczykowski said. ty to piggyback on the growth of Its growth may, however, be Peru, Colombia and Brazil,” he headed toward some speed said, explaining that a company bumps, quite literally, owing to already operating in Costa Rica its poor roads. The route from can take advantage of its proximCosta Rica’s major port, Puerto ity to open locations in other Limon, to the manufacturing Latin American countries. center of Cartago, for example, An educated workforce also primarily follows a two-lane attracts corporations. Costa road, Panczykowski explained. Rica’s 96 percent literacy rate The damaged roadways’ biggest registers as one of the highest impact, however, falls on in Latin America, according to tourism, Cheney said. the 2007 CIA World Factbook. But the country’s highest hurThe country also stresses Eng- InterContinental Hotels Group Plc hopes the meeting and banquet space in the dle for attracting foreign investlish-language education in its new Crowne Plaza Hotel San Jose Corobici appeals to business travelers. ment lies beyond its borders. Its schools, a skill that serves its population of 4.1 million people economy, and its $1 hourly wage large tourism sector, said Zack in Costa Rica, for example, are Cheney, vice president & regional well positioned to serve U.S. time certainly appeals to U.S. compa- pales in comparison to Mexico’s 109 million and Brazil’s 180 milnies, Panczykowski said. director of Latin America opera- zones. Cheney added that the govContinued on page 25 ® Thus, corporations like Amations for Jones Lang LaSalle Inc. ernment provides generous tax GLOBAL SNAPSHOT Top-Heavy Rising vacancies and declining rents have arrived in Canada, as well as the United States. Average asking rents are expected to edge lower during the fourth quarter and to continue to decline throughout much of 2009 as tenants gain leverage and landlords compete to maintain occupancy in their buildings. Slowing conditions in the Asia-Pacific office sector also became evident in the third quarter, and many markets are at or near their rental-cycle peaks. A few markets—including Hong Kong, Tokyo and Sydney—have moved to the down cycle. Most European markets reported stable prime rental levels for the quarter, and some Central and Eastern European markets still experienced rental growth. The rental outlook remains subdued for the remainder of the year. Toronto Frankfurt Bangalore Mumbai Mexico City Rental growth slowing Beijing, Hong Kong, Paris, Chicago London, Midtown New York City Rents falling Sydney Tokyo Note: This diagram illustrates where Jones Lang LaSalle Inc. estimates each prime office market to be within its individual rental cycle as of the end of September 2008. Markets can move around the clock at different speeds and in different directions. The diagram is a convenient method of comparing the relative positions of markets in their rental cycle. The positions refer to prime face rental values and are not necessarily representative of investment or development market prospects. Source: Jones Lang LaSalle Inc. • www.joneslanglasalle.com 22 COMMERCIAL PROPERTY NEWS • December 2008 • www.cpnonline.com Rental growth accelerating Rents bottoming out http://www.joneslanglasalle.com http://www.cpnonline.com

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CPN - December 2008 Contents Starting Line Retail Data/Analysis Conferences Boston Market Profile Finance International Property Management

CPN - December 2008

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