Standard Asset Types
Appraisal Office Tower. Office is a room, set of rooms, or building used as a place for commercial, professional, or bureaucratic work. Office projects are advancing quickly in terms of design and construction in Latin America. Large class A projects are being built in office corridors that are connected to public transportation. Office projects now focus on multinational and regional tenants, that need large floor plates, climate-controlled environments, and high security standards.
The advances of real estate funds in Latin America have allowed for large mixed-use projects with office components to begun to be developed. These projects require substantial capital outlay, over a long period of time. LOGAN has appraised some of the most important office portfolios and projects in Latin America including in Colombia, Peru, Mexico, Costa Rica, and Panama.
Cost approach – relevant when the project is relatively new.
Sales comparison or market approach – applicable if there is sufficient comparable sales or leases available.
Income capitalization approach – considers the profitability of a property but does not easily change in income or costs over time.
DCF – discounted cashflow – most advanced method for valuation of offices, because the method measures the profitability of a project over time, and the method is typically the way investors analyze potential purchases in Latin America (investment funds or FIBRAs).
Location – the location of an office project is the most important factor of value usually. It is very important for projects to be located within office corridors or hubs because companies like to be near their clients, and near access to mass transit systems.
Floor plate size – this is a key differentiator in office projects. Typically, a larger floor plate allows for more efficiency in a project for tenants. Class A tenants often require this specification – and locate in projects that provide it.
Tenant quality – closely related to the location and building specifications is the quality of tenant a project attracts. Usually high spec, well-located projects attract multinational tenants, who have high credit ratings, and provide long-term cash flow stability for projects
Rent, rental growth – rental levels and rent increments have a big impact on property value.
Tenant credit quality – having important multinational tenants helps increase the stability of the cash flows and allows for lower cap rates.
| Colombia | Mexico | Peru | CR-CA | |
|---|---|---|---|---|
| 1 | Bogota, 26 Ave | DF, Reforma, Mexico | Lima, Miraflores | San Jose, Escazu |
| 2 | Bogota, Chico | DF, Santa Fe, Mexico | Lima, San Isidro | Panama City |
| 3 | Medellín, Ave. Poblado | Nuevo Leon, Monterrey | Lima, Santa Cruz | San Jose, La Sabana |
| Colombia | Mexico | Peru | CR-CA | |
|---|---|---|---|---|
| 1 | Base PG | FUNO | Centenario | Portafolio |
| 2 | Terranum | Fibra MTY | Urbanova | Ultra Park |
| 3 | QBO | Mira | Alpina | Expandd |
Leadership Team
ARGUS Developer helps set standard for complex modelling in latin america
LOGAN Valuation is an institutional real estate valuation and consulting firm serving Latin America, with offices in Colombia, Peru and Mexico.
ARGUS Enterprise helps attract real estate investors to latin america
LOGAN Valuation championing software as key to evolution Business Challenge Robert and Bryan Dragoo founded LOGAN Valuation.
