Marketing Report
Festo's property
Property profile
Market sentiment
Marketing results 2021
Marketing 2022
Strategy and Pricing
Pricing (Sale)
Scenario 1: Sell Building vacant
- Target: Owner occupier* or investor
- Description: Sell vacant building to owner occupier or real estate investor (less likely)
- Price: Targeted price is COP$13.000.000.000 (USD$3.165.967,31) – Per the BOV prepared by JLL the suggested asking price is COP $8.904.361.411 (USD$2.355.121,57)
Scenario 2: Sell Building with a lease agreement
- Target: Real estate investor
- Description: Lease the building with a minimum lease term of 5-years prior selling it to a real estate investor
- Price in rent: COP$110.310.000 monthly rent (USD$29,175,97 m2/month)
- Cap Rate: 9,04%
- Price: COP$13.000.000.000 (USD$3.165.967,31)
Low impact industrial operations established in the outdated urban areas or in neighboring municipalities motivated by a "flight to quality" strategy.
New or growing operations in need of office spaces at close distance from their logistic warehouse / industrial plants.
Local back-office operations (being this one, the less probable scenario, but still relevant, considering the amount of office area available in the property)
New or growing operations in need of office spaces at close distance from their logistic warehouse / industrial plants.
Local back-office operations (being this one, the less probable scenario, but still relevant, considering the amount of office area available in the property)
Festo
Festo's Building was constructed in a land of around 4,853 sqm
The regulations of municipality (POT) stipulates that the owner can only build up to 64% of the total area on the ground floor (3.108,46 sqm).
The total area to be built under POT regulations would be up to 7,280 sqm
Festo's built area is 3,595 sqm.
Developing the remaining area to be built as permitted would allow them to maximize the warehouse but most of the space to be built would be offices. However, the market appetite for office space in this location is scarce.
The regulations of municipality (POT) stipulates that the owner can only build up to 64% of the total area on the ground floor (3.108,46 sqm).
The total area to be built under POT regulations would be up to 7,280 sqm
Festo's built area is 3,595 sqm.
Developing the remaining area to be built as permitted would allow them to maximize the warehouse but most of the space to be built would be offices. However, the market appetite for office space in this location is scarce.
2021
2022
Logistic / Industrial Market Sentiment
Contrary to other real estate markets, the logistics/industrial market has remained stable during the COVID-19 pandemic.
The health crisis in 2020 acted as an accelerator of existing trends, specifically eCommerce, which had a significant impact on the logistics real estate market.
An increase in demand for spaces with high construction specifications, specifically in the La Calle 80 corridor, also accelerated due to the pandemic and the e-commerce boom. In addition, multi-channel experiences have made logistics more dynamic, requiring spaces that contribute to receiving and delivering merchandise at a faster pace.
There was also an increase in demand for urban warehouses. Logistics spaces within the urban area that can manage last-mile logistics are beginning to gain relevance due to the boom in electronic commerce.
2021
Inventory
4.974.545 m²
Vacancy
5.1%
Rent Prices
$12.500 COP- $30.000 m²
Market Review
Bogotá is the main logistics and industrial center of Colombia, both because of its strategic location in respect to other cities and the size of its economy and market potential.
Like most markets around the world, the health crisis in Bogotá caused a jump in demand for logistic assets resulting in low vacancy levels and stable rent prices in the industrial and logistics real estate market during 2020. This trend continued throughout the first half of 2021: the market vacancy rate on average was 5.1%, translating to approximately 270,000 m2 of vacancies.
In terms of rent prices, the highest rents are found in the urban submarkets. the highest rent prices on the market are in the Álamos submarket, even though assets in this area are Class B and C, the rents are around 31.000 COP/m2/month. Of the suburban submarkets, Calle 80 has the highest rent prices. This submarket has expanded greatly thanks to improvements in the road and transportation infrastructure, tax incentives, its proximity to the city and the lack of toll roads. The rents in this sub-market vary between 13,000 COP / m² / month for class B assets and 19,000 COP / m² / month for class AAA assets.
Like most markets around the world, the health crisis in Bogotá caused a jump in demand for logistic assets resulting in low vacancy levels and stable rent prices in the industrial and logistics real estate market during 2020. This trend continued throughout the first half of 2021: the market vacancy rate on average was 5.1%, translating to approximately 270,000 m2 of vacancies.
In terms of rent prices, the highest rents are found in the urban submarkets. the highest rent prices on the market are in the Álamos submarket, even though assets in this area are Class B and C, the rents are around 31.000 COP/m2/month. Of the suburban submarkets, Calle 80 has the highest rent prices. This submarket has expanded greatly thanks to improvements in the road and transportation infrastructure, tax incentives, its proximity to the city and the lack of toll roads. The rents in this sub-market vary between 13,000 COP / m² / month for class B assets and 19,000 COP / m² / month for class AAA assets.
Investment Market Sentiment
Investment funds are showing interest in real estate investments when they offer long term and attractive returns. In Colombia there are more than 70 real estate funds.
This number has increased during the the last 5 years.
This number has increased during the the last 5 years.
Bogota remains to be the engine of Colombian economy and represents an opportunity for investments in all types of properties.
The Calle 26 submarket in Bogotá for office/mixed use and Calle 80 for industrial uses will be the long- term growing submarkets during the next decade.
The Calle 26 submarket in Bogotá for office/mixed use and Calle 80 for industrial uses will be the long- term growing submarkets during the next decade.
As for the cap rates the effects of decreasing interest rates and increased perceived risk will have an offsetting effect in cap rates for class A- Core assets. Some exceptions may be retail and hotel –which have been adversely affected by the Covid – 19 shutdowns. The Resilience of industrial and office sector during the pandemic has created increase investor interest. The industrial cap rate could be in 11.0% and 7.0% with an average of 8.1%
CAP RATE 2021
Maximum
11.0%
Average
8.1%
Minimum
7.9%
Transactions in the Calle 80 Industrial Zone
Of the 71,816 m², which was a speculative market, 73% was placed for rent.
Transactions in the Calle 80 Industrial Zone
Of the 267,816 m2 that were dealed on Calle 80, 73% were under custom construction – BTS.
Transactions by Market
Of the 315,787 m2, 62% of the m² were transactions in the speculative market.
Transactions by Industrial zone (m²)
Up to date, it is recorded that transactions have been made for 315,787 m². Calle 80 is the area with the highest number of square meters in transactions.
Marketing Plan & Results 2021
Visitors / clics
Number that reports how many visits were achieved throughout the commercial management including Digital Marketing (Facebook + Instragram + Google ads) + Proactive Marketing, Mailing - Eloqua (first level funnel delivered).
Leads
Record of the number of prospects who have requested information about the property.
Opportunities
Number of prospects who have become potential clients and who advance to a negotiation.
Deal
Number of potential clients who have submitted a formal commercial offer and are in the process of closing a deal.
Results 2021
Visitors / Clics
6.292
Leads
22
Opportunities
0
Deal
0
Digital strategy results
Proactive Marketing
May
August
September
October
November
Neighborhood
*It does not apply because it is a Logistic Park and Festo's property has not logistic use
Accomplished
75,5%
Task IV
Task III
May 20 - 2021
Task II
May 13 - 2021
Task I
April 15 - 2021
April 8 - 2021
April 1 - 2021
Location of companies in the zone
Stage I
Stage II
Identification of effective contacts
April 15 - 2021
April 22 - 2021
DB Task I
May 22 - 2021
DB Task II
May 27 - 2021
DB Task III
DB Task IV
75,5%
Accomplished
Companies to reach out
Completed in August – Flavors and fragrances & Agroindustrial
Marketing plan
Marketing results
Proactive Marketing
Target Definition
Target
Marketing Strategy
Target Definition
Segmentation Variables
Target Audience
COP $30.000 (thousands of millions) – 75 employees
Revenue
Class A offices, fire protection network,
Technical
•Office area: 2,000 m2 to 2,500 m2
•Warehouse area: 1,000 m2
•Parking space: wellness area
•Warehouse area: 1,000 m2
•Parking space: wellness area
Real Estate Need
Offices for lease of 2,000 m2 - Warehouse for lease of 1,000 m2 - Suitable offices - Production warehouse
Office and warehouse consolidation - office relocation - ICA benefit in Siberia - ICA benefit in Tenjo
Offices in Cota - Winery in Cota - Offices in Siberia - Winery in Siberia
Office and warehouse consolidation - office relocation - ICA benefit in Siberia - ICA benefit in Tenjo
Offices in Cota - Winery in Cota - Offices in Siberia - Winery in Siberia
Keywords
•Production company: Companies that provide training on their products that use compressed air line, design technical service.
•Maintenance workshop for the production of small parts - assembly - packaging material - maquila.
•Maintenance workshop for the production of small parts - assembly - packaging material - maquila.
Usage
Zone that offers tax benefits, close to Bogotá
Location
• Recreation and health areas (green areas, gym
• Facilities (Elevator)
• Care spaces (Nursing, Lactation)
• Restaurant (Large Casino)
• Sufficient bathroom battery – per space
• Lockers with shower
• Emergency stairs with railings, corridor width and non-slip floor
• Facilities (Elevator)
• Care spaces (Nursing, Lactation)
• Restaurant (Large Casino)
• Sufficient bathroom battery – per space
• Lockers with shower
• Emergency stairs with railings, corridor width and non-slip floor
Welfare
• Commercial: Robust commercial force.
• Show room: Company that wishes to exhibit its products, machines, technical service
• Customer service and workshop: Workshop to review equipment, solve repurchase concerns.
• Operational: Space for storage, production, assembly
• Training: Space to teach the products and their scope
• Administrative: Class A space for administrative resource.
• Financial: Consolidate in an independent property: offices + warehouse + workshop + training room at a price. Savings in parking fee
• Show room: Company that wishes to exhibit its products, machines, technical service
• Customer service and workshop: Workshop to review equipment, solve repurchase concerns.
• Operational: Space for storage, production, assembly
• Training: Space to teach the products and their scope
• Administrative: Class A space for administrative resource.
• Financial: Consolidate in an independent property: offices + warehouse + workshop + training room at a price. Savings in parking fee
Business need
Social Media (LinkedIn)
Where your audience spends time?
What method will you use to locate them?
Google ads, email campaigns
Few properties with its characteristics in the area.
What makes your property different?
How will you allocate the different marketing activities?
Marketing plan
Target
Marketing Tools
Sale Procedure - Investors
4. Mailing - Users
5. Mailing - Investor
3. Ad for social networks
2. Two posts in PowerSearch: Office and Warehouse
1. Sale/Lease signs
Sale Procedure – Sale/Lease
Marketing Strategy
Achieve the goal in Leads
•Google ads
•Owned Media
•Owned Media
SEO y SEM
Eloqua
Email Marketing:
Banner
Traditional Marketing
•Facebook/Instagram
•LinkedIn – Sale navigator
•JLL's web page – PowerSearch
•LinkedIn – Sale navigator
•JLL's web page – PowerSearch
Digital marketing
Timeline 2022
Schedule 5 months
Marketing Plan & Results 2022
Goal and results
Visitors / clics
Number that reports how many visits were achieved throughout the commercial management including Digital Marketing (Facebook + Instragram + Google ads) + Proactive Marketing, Mailing - Eloqua (first level funnel delivered).
Leads
Record of the number of prospects who have requested information about the property.
Opportunities
Number of prospects who have become potential clients and who advance to a negotiation.
Deal
Number of potential clients who have submitted a formal commercial offer and are in the process of closing a deal.
1
7
15
3.000
Deal
Opportunities
Leads
Visitors / clics
GOAL
0
0
0
0
June
0
0
2
1.530
January
0
0
2
1.756
February
0
3
1
591
March
0
0
1
828
April
0
0
0
0
May
Cellphone: +57 318 708 6682
e-mail: diana.uruena@am.jll.com
e-mail: diana.uruena@am.jll.com
Industrial and logistics Consultant
Contact
Diana Urueña
Office JLL Colombia
Avenida Calle 82 #9-65
Avenida Calle 82 #9-65