Bogotá

Space Unit of Measure

Square Meters

Financial Data Below Reported In

USD

10%
Typical Loss Factor from Rentable to Useable Square Meters

Landlord Concessions

Fit-Out Concession

The Landlord typically does not provide a contribution or concession to fit-out as a part of the lease transaction.

Rent-Free Period

In addition to the fit-out contribution, the Landlord typically provides a contribution or concession in the form of a rent-free period.

Standard Range of Rent-Free Months

1mo.-3mo.

Typical number of rent-free months.

Lease Provisions

Lease Term

3yrs.-7yrs.

Typical lease term in years.

Lease Term Notes:

Average lease term is 5 years

Operating Expenses & Service Charges Included

Quoted market rent typically does not include operating expenses (service charges). There are additional charges that apply to leasing space.

Additional Charges:

Utilities
Service Charges
Stamp Duty
Electric
Rates
HST
Cleaning
Hydro
Registration Fees
Taxes
Insurance
VAT
Other

Service Charge Notes:

Market rent is only the base rent. CAM expenses and utilities are paid directly by the tenant to the building administration. VAT for the base rent is 16%. Insurance are for the tenants' operation and assets, not the property.

Figures: varies considerably depending on the type of building and consumption of utilities

Lease Timeline: The following apply to both office and industrial leases.

Lease Execution Requirements:

Requirements Notes:

In Colombia, some landlords require an insurance policy that guarantees the payment of rent and utilities during the lease term

Negotiated Subletting/Assignment

Typically, the tenant's right to sublease or assign the space is negotiated in the lease agreement.
Landlord Consent: Typically, the landlord's written consent IS still required.

Negotiated Subletting/Assignment Notes:

Usually require the landlords' previous approval

Statutory Subletting/Assignment

This IS a statutory right.
Landlord Consent: The Landlord's consent is still required.

Blend & Extend Strategies

Typically, a tenant can not take advantage of "blend & extend" ("forward renewal", "early renewal", etc.) strategies when the appropriate market conditions exist.

Blend & Extend Notes:

Can be proposed to the landlord on a case-by-case basis

Statutory Early Termination

This IS a statutory termination right.

Negotiated Early Termination

It is NOT typical for tenants to be able to negotiate an early termination right in the lease agreement.

Early Termination Notes:

The ability to terminate early is always negotiated and included in the lease. The terms must be agreed upon with the landlord on a case-by-case basis. However, the law states the tenant will have to pay the remaining rent until the initial lease term is fulfilled.

Typical cost: negotiated with the landlord

Obligations Upon Lease Expiration

Basic broom clean condition and removal of special installations.
Dilapidations.
Complete restoration to shell.
Other

Tenant Obligation Notes:

Typically, landlords will request the space to be restored to its original condition - negotiated on a case-by-case basis

Workplace

Regional Office Space

7sm-9sm

Typical Square Meters per employee (includes office square footage for employees and contractors).

Regional HQ Office Space

9sm-12sm

Typical Square Meters per employee (includes office square footage for employees and contractors).

Bogotá market is typical.

Change management is important for this strategy

Desk Sharing

Desk-sharing is not a common practice in the market.

Urbanization of the workforce is: A major factor driving location decisions

Landlord Concessions

Fit-Out Concession

The Landlord typically does not provide a contribution or concession to fit-out as a part of the lease transaction.

Rent-Free Period

In addition to the fit-out contribution, the Landlord typically provides a contribution or concession in the form of a rent-free period.

Standard Range of Rent-Free Months

1mo.-2mo.

Typical number of rent-free months.

Rent-Free Notes:

This is becoming more common in industrial transactions

Lease Provisions

Lease Term

5yrs.-7yrs.

Typical lease term in years.

Operating Expenses & Service Charges Included

Quoted market rent typically does not include operating expenses (service charges). There are additional charges that apply to leasing space.

Additional Charges:

Utilities
Service Charges
Stamp Duty
Electric
Rates
HST
Cleaning
Hydro
Registration Fees
Taxes
Insurance
VAT
Other

Service Charge Notes:

Market rent is only the base rent. CAM expenses and utilities are paid directly by the tenant.

Figures: varies considerably depending on the type of industrial complex and consumption of utilities

Lease Timeline: The following apply to both office and industrial leases.

Lease Execution Requirements:

Requirements Notes:

In Colombia, some landlords require an insurance policy that guarantees the payment of rent and utilities during the lease term

Negotiated Subletting/Assignment

Typically, the tenant's right to sublease or assign the space is negotiated in the lease agreement.
Landlord Consent: Typically, the landlord's written consent IS still required.

Negotiated Subletting/Assignment Notes:

Usually require the landlords' previous approval

Statutory Subletting/Assignment

This IS a statutory right.
Landlord Consent: The Landlord's consent is still required.

Blend & Extend Strategies

Typically, a tenant can not take advantage of "blend & extend" ("forward renewal", "early renewal", etc.) strategies when the appropriate market conditions exist.

Blend & Extend Notes:

Can be proposed to the landlord on a case-by-case basis

Statutory Early Termination

This IS a statutory termination right.

Negotiated Early Termination

It is NOT typical for tenants to be able to negotiate an early termination right in the lease agreement.

Early Termination Notes:

The ability to terminate early is always negotiated and included in the lease. The terms must be agreed upon with the landlord on a case-by-case basis. However, the law states the tenant will have to pay the remaining rent until the initial lease term is fulfilled.

Typical cost: negotiated with the landlord

Obligations Upon Lease Expiration

Basic broom clean condition and removal of special installations.
Dilapidations.
Complete restoration to shell.
Other

Tenant Obligation Notes:

Typically, landlords will request the space to be restored to its original condition - negotiated on a case-by-case basis

Section 1. Fit Cost Data

Value-Added Opportunities:

1st: Standard Furniture & Chairs
2nd: Carpet

Total Fit-Out Cost

$1000/sm-$1668/sm

Class A Office

$914/sm-$1345/sm

Class B Office

$645/sm-$1076/sm

Class C Office

Total Fit-Out Cost Notes:

Total Fit-Out Costs are based on an average 10,000 SF office fit-out project

Furniture Cost

$194/sm-$269/sm

Class A Office

$130/sm-$258/sm

Class B Office

$118/sm-$215/sm

Class C Office

Furniture Cost Notes:

These costs are included in the Total Fit-Out costs.

Low Voltage Cabling Cost

$35/sm-$54/sm

Class A Office

$32/sm-$49/sm

Class B Office

$27/sm-$43/sm

Class C Office

Low Voltage Cabling Cost Notes:

These costs are included in the Total Fit-Out costs.

Other (IT/etc) Cost

$30/sm-$52/sm

Class A Office

$23/sm-$36/sm

Class B Office

$19/sm-$25/sm

Class C Office

Other Cost Notes:

These costs are not included in the Total Fit-Out costs.

Construction to Move-in Cycle Time

16wks-20wks

Class A Office

12wks-16wks

Class B Office

12wks-16wks

Class C Office

Section 2. Scope of Work Description

Phase 1: Services Before and During the Transaction

Review the LOI and work letter portion of the Lease to ensure that the clients interests are protected during the build-out of the project.
Typically included in "Project Management" scope of work.
Advise Colliers broker and client on project issues and their resolution as they occur.
Typically included in "Project Management" scope of work.
Participate in building tours, if requested, to evaluate building systems and other cost-related observations and prepare a building due diligence report
Typically included in "Project Management" scope of work.
Not typically included at all, but available for an additional fee.
Develop high-level project estimate and timeline based on test fit and Client standards
Typically included in "Project Management" scope of work.
Not typically included at all, but available for an additional fee.
Schedule and chair Schematic Drawings and Design Development Drawings review meetings/conference calls
Typically included in "Project Management" scope of work.
Define workplace strategy for client, research what kind of location, office / work environment accelerates business
Not typically included at all, but available for an additional fee.
Define program of requirements for location, building and interior characteristics
Typically included in "Project Management" scope of work.
Engage with the Client Facilities Management (FM) Operations team to ensure alignment with Client standards
Typically included in "Project Management" scope of work.
Phase 1 Notes:
Reviewing the LOI and advising Colliers brokers and clients on project issues are on a case by case and not always possible depending on synergies with TM teams.

A PM is usually available during a building tour, but evaluations/DD/surveys are charged separately.

In LATAM, we provide added-value services (for an additional fee) to support the client and introduce integrated services approach at very early stages. These are:
- Test fits (including Look & Feel)
- Cost Estimates
- Schedule/timing/phasing scenarios
- Floor plan, core and circulation efficiency ratios (GIA vs. NIA, NOA vs. NIA)
- Technical due diligence/Assessments
- We may pack everything into a Feasibility Study or proposed them separately depending on the situation.
All these aspects can support the decision making process.

Phase 2: Service Before and During the Design Process

Develop preliminary project budget and schedule.
Typically included in "Project Management" scope of work.
Develop the RFP for selection of a space planner/architect and any other consultants identified and required
Typically included in "Project Management" scope of work.
Not typically included at all, but available for an additional fee.
Analyze, compare and evaluate responses to the RFP.
Not typically included at all, but available for an additional fee.
Orchestrate the space planner/architect interview process.
Typically included in "Project Management" scope of work.
Negotiate, on behalf of the client, professional services agreements with the space planner/architect and other consultants.
Typically included in "Project Management" scope of work.
Review architect’s final Program of Requirements.
Typically included in "Project Management" scope of work.
Monitor the design team’s schedule of deadlines and deliverables. Coordinate meetings with the design team and the client. Manage the design process on behalf of the client.
Typically included in "Project Management" scope of work.
Review and recommend payment of the invoices for services. Submit invoices for payment to landlord or client and prepare monthly reports of project costs versus project budget.
Typically included in "Project Management" scope of work.
Negotiate all client-vendor contractors (IT, AV, Security/Access Control, Signage, High Density Filing) on behalf of client.
Not typically included at all, but available for an additional fee.
Coordinate with either Architect or General Contractor in permitting process
Typically included in "Project Management" scope of work.
Schedule and chair weekly design review meetings/conference calls
Typically included in "Project Management" scope of work.
Other Value-Add Services: Test fits (including Look & Feel) - Cost Estimates - Schedule/timing/phasing scenarios - Floor plan, core and circulation efficiency ratios(GIA vs NIA) (NOA vs NIA) - Technical due diligence/Assessments - We may pack everything into a Feasibility Study or proposed them separately depending on the situation.
Not typically included at all, but available for an additional fee.
Define interior guidelines for architect based on workplace strategy
Not typically included at all, but available for an additional fee.
Control workplace strategy and functionality and during design process
Not typically included at all, but available for an additional fee.
Architectural design
Not typically included at all, but available for an additional fee.
Phase 2 Notes:
Additional fees may be requested (to be assessed on a project by project basis) depending on project complexity and overall project timing when developing the RFP for selection of a space planner/architect and any other consultants identified and required.

Analyzing, comparing and evaluating responses to the RFP included for GC's & Furniture RFPs.
For A/E RFPs, depending on project complexity and overall project timing, additional fees may be requested (to be assessed on a project-by-project basis). Trips excluded.

Fees are based on the involvement of A/E team, General Contractor and not separate bids/purchases, with a flexibility on Carpet and furniture.
We shall also recommend if and expediter is to be involved (at client cost and no Colliers liability).

Architectural design depends on project size and location. We can propose design and engineering services.

Phase 3: Services Before Construction

Liaise with the Landlord’s Representative.
Typically included in "Project Management" scope of work.
Prequalify a list of general contractors to be interviewed (consult lease to confirm any Landlord required GCs).
Typically included in "Project Management" scope of work.
Develop the RFP, including Landlord and/or Lease required documents, for selection of a general contractor.
Typically included in "Project Management" scope of work.
Analyze, level, and evaluate the responses to RFP.
Typically included in "Project Management" scope of work.
Orchestrate general contractor interview process and prepare evaluation scorecard.
Typically included in "Project Management" scope of work.
Review all proposed subcontractors and monitor the general contractor’s subcontractor bid process to ensure integrity of the process and quality of the workmanship.
Not typically included at all, but available for an additional fee.
Monitor the general contractor’s schedule of deadlines and deliverables. Coordinate meetings between the design team, general contractor, client and appropriate vendors.
Typically included in "Project Management" scope of work.
Negotiate, on client's behalf, the General Contractor agreement for Client approval
Typically included in "Project Management" scope of work.
Schedule and coordinate Architect's 90% Construction Drawings review
Typically included in "Project Management" scope of work.
Develop Project Cost Summary + Invoice Tracker and update weekly
Typically included in "Project Management" scope of work.

Phase 4: Services During Construction

Coordinate with the Landlord’s Representative.
Typically included in "Project Management" scope of work.
Conduct weekly construction meetings to assess progress, quality and conformance with the Contract Documents and distribute minutes of meetings.
Typically included in "Project Management" scope of work.
Monitor the general contractor’s schedule.
Typically included in "Project Management" scope of work.
Monitor the construction budget.
Typically included in "Project Management" scope of work.
Review, and recommend for payment, the contractor’s Applications for Payment.
Typically included in "Project Management" scope of work.
Monitor all project documentation.
Typically included in "Project Management" scope of work.
Act at all times as client’s liaison to vendors contracted directly by Client (IT, AV, Security/Access Control, Signage).
Typically included in "Project Management" scope of work.
Not typically included at all, but available for an additional fee.
Oversee the punch list process to ensure acceptable completion of all items.
Typically included in "Project Management" scope of work.
Close out all consultant, contractor and vendor contracts.
Typically included in "Project Management" scope of work.
Submit General Contractor, vendor, and consultant invoices to Landlord for reimbursement per the Lease Workletter
Not typically included at all, but available for an additional fee.
Review and recommend for payment all General Contractor, vendor, and consultant invoices; submit to Client for approval
Typically included in "Project Management" scope of work.
Deliver close-out documents, as specified in the Lease, to Client
Typically included in "Project Management" scope of work.
Coordinate value/engineering process, if required.
Typically included in "Project Management" scope of work.
Provide as-built drawings and O&M Manuals to Client FM Operations team
Typically included in "Project Management" scope of work.
Phase 4 Notes:
When acting as client's liaison to vendors, additional fees may be required depending on the amount of vendors/subcontractors involved. We typically include, A/E, GC, Carpet & Furniture.

Submitting GC, vendor and consultant invoices are not typical in LATAM markets and does not necessarily imply extra fees. TBD on a case-by-case basis.

Additional Services: Services During Relocation

Develop RFP for moving companies, evaluate responses and recommend selection of moving company or identify, interview and review proposal for services from relocation consultants.
Not typically included at all, but available for an additional fee.
Represent Client in development of move strategy.
Not typically included at all, but available for an additional fee.
Monitor development of move activity checklist.
Not typically included at all, but available for an additional fee.
Represent client on site during move process.
Not typically included at all, but available for an additional fee.

Additional Services: Project Management Services Related to Furniture/Workstation Procurement

Conduct bid process for all furniture (workstations, case goods, seating, filing) purchases specified by the architect and/or client.
Typically included in "Project Management" scope of work.
Conduct bid process for refurbishment of existing furniture and/or workstations.
Not typically included at all, but available for an additional fee.
Evaluate bids and negotiate purchase order with manufacturer(s).
Typically included in "Project Management" scope of work.
Negotiate national buying contract with select furniture dealerships, using Colliers International purchasing power
Not typically included at all, but available for an additional fee.
Change management before, during and after moving to the new work environment
Not typically included at all, but available for an additional fee.
Measuring/monitoring (KPI's) how the way of working and building accelerates business and goals of the client
Not typically included at all, but available for an additional fee.
Additional Services Notes:
Evaluating bids and negotiating purchase orders with manufacturers are typical with furniture. Anything else are considered as additional services/fees.

Business Climate Business Climate data provided in partnership with Hickey & Associates. Rankings reported on a scale of 1 (least favorable) to 10 (most favorable). Please refer to the full report Explore 2017 for additional details.

Incentives and Labor Market

5, 5 5/10

Incentives
Value potential, diversity/number of programs

8, 2 8/10

Job Saturation
Competition for workers

5, 5 5/10

Wage Inflation
Rise in wages (past 10 years, local currency)

Educational Attainment

5, 5 5/10

HS Ed Eq
Proportion of population attaining this level

5, 5 5/10

University Ed
Proportion of population attaining this level

5, 5 5/10

Overall
Composite average of HS Ed Eq & University

Composite

6, 4 6/10

Additive sum of incentives, saturation, overall ed attainment, and wage inflation

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