R/E Investments

[alg]

I've been reading about Costa Rica for about 4 years now and this is definitely a good blog, but it is strange that no one seems to be able to provide information on commercial developments, on this site or anywhere else on the Net?!?! Please help, someone must know something.

[Russ]

Hi, welcome to the forum.

I can get information for you, can you tell me more specifically what your interest is? 

I am always looking to add information or articles to the site that people  can't find elsewhere.

[alg]

Thank you for replying. All through the Web it is clear that many major foreign companies such as Intel, HP etc... are building factories warehouses, call centers and other facilities. One would think that they are not in real estate development business. Who is building such facilities for them and for other local and foreign companies? Is there 'build to suit' concept? If there is how does it work in CR?
Thanks for your help.

[Russ]

Most of these companies are renting office space, in some cases companies may buy the office space within an office park from a developer, in a condominium type purchase. 

There are several office parks and kinds of office parks that have been successful.  The grupo Roble has built the Forum in Santa Ana.  They also have a new one next to their Multiplaza Oeste mall in Guachepelín.  There is the Mercedes Tower downtown, Mall San Pedro to the east and several smaller but successful developments scattered about.  Not every single development or office tower is successful though, so investment in this area has to be done the right way with the proper marketing.

Another common situation is the Free Zone areas. These are Ultra Park and Global Park, for example.  These are very similar to office parks, or light industrial parks, the difference being that they have met additional requirements so that materials may be brought in duty free and later exported as finished products.  Companies locating here take advantage of the developer's infrastructure to meet customs requirements.

Some companies, particularly manufacturing companies do buy land and build.  Some of these properties are available, particularly former textile plants.  With the approval of CAFTA up in the air, and the emergence of other countries as bases for manufacturing this is not a growth area.  This is due to economic factors, labor laws,  and environmental protection legislation that makes it more difficult (or more expensive) for these companies to operate here.

As you mention the kinds of companies locating here are those that need professional, often bilingual or trilingual, employees to provide "near sourcing" services. So anything geared to offices and communications infrastructure would probably find more market than anything geared to manufacturing or shipping. 

Please don't hesitate to ask more specific questions.

[alg]

Thank you for providing this information. Very helpful!
I do have more questions and I hope you do not mind? Are there any RE Brokers specializing in commercial and industrial properties?
I have been reading number of different newpapers from Costa Rica which are in English and on the Internet. Are there any that you would recommend? I am looking for more bussines related articles.

[Russ]

In the group, Ivo Henfling at Go Dutch Realty specializes in commercial property in the Central Valley.  There are a few projects to provide office space on the beach.  This seems to me like a great opportunity, what better "near sourcing" than being on a tropical beach, with all the technology professionals need, and being near an international airport for business trips.  Also local professionals need office space, some lawyers have set up offices near Flamingo and Tamarindo to serve clients who have purchased there.

There are no commercial realtors on the beach, since the market is just developing the normal realtors handle the land that would be suitable. Of course your office complex wouldn't probably have to be ON the beach, so you have the advantage of building on the cheaper land.

[kens]

Keep in mind also that the infrustructure in the beach communities, though developing, is not always reliable. We lose power several times a day, cell phones work about 50% of the time and internet is up and down. That being said, as the beach areas develop so will the infrustructure, which we are told (it is being upgraded) is why at present it is not reliable.

[Jogi]

Keep in mind also that the infrustructure in the beach communities, though developing, is not always reliable. We lose power several times a day, cell phones work about 50% of the time and internet is up and down. That being said, as the beach areas develop so will the infrustructure, which we are told (it is being upgraded) is why at present it is not reliable.

Dear Kent, try to be more specific if talking about beach communities, Jaco is not Costa Rica. I disagree with what you said, here on the beach in the Tamarindo we have a pretty stable power source and the cell phone service is reliable. We have power shortages sometimes yes but average without power like once a month for a total of 2 hours maybe. Both cell phone systems, the TDMA and the GSM work well, I would say 90% of the area is covered / with good-great signal. We have fast internet as well and it is fun surfing the internet.
Pura Vida 

By the way, would like to take the chance and inform about www.plazatamarindo.com a new commercial center in the heart of town. Phase one is built and almost sold out, phase 2 & 3 will be soon comming on the market.