OCCUPIER GUIDE

Total Stock (million sq. ft.)
39.0

Vacancy Rate
5.7%

Availability Rate
5.7%

NNN Lease Rate
US$5.07

Net Absorption (million sq. ft.)
0.6

Metro Area Population
6.3 million

Unemployment Rate*
7.3%

Annual Salary - Warehouse
N/A

% of Pop - Secondary Education
70.0%

% of Pop - Tertiary Education
30.0%

*Country unemployment rate was used as proxy.

Airport
Comodoro Arturo Merino Benitez International Airport

Total Cargo (millions of U.S. tons)
N/A

Seaport
Port of Valparaiso

TEU Volume - 2017 (millions)
1.15

Major Highways
Rte. 68, Rte. 78, Autopista Central, Costanera Norte

Number of Intermodal Rail Hubs
1

Number of Class I Rail Lines
2

What is the term of a typical lease?
1-3 years

How is the rent quoted?
Net monthly

What is the tenant's option for termination or break?
Break options are not common and must be negotiated

Does the tenant have the option to renew? What is the length of the typical option?
Yes

How is the rent determined at renewal?
Typically, rents are determined by market rent at renewal and are generally negotiated 3 to 6 months in advance of lease expiration.

What is the typical rent-free period, if any?
Rarely, only in market slowdown. 1-3 months depending on lease length (must be over 2 years)

What is the typical rent escalation?
Based on CPI

Does the tenant have the right to sublet?
Usually to related companies; sometimes landlord consent is not needed

What is the unit of measurement of a typical lease?
Per sq. m. per month

Does the leasable area include the common area?
No

What is the average rent for a warehouse greater than 50K sq. ft.?
0.121 UF per sq. m. per month

What is the average rent for a manufacturing facility greater than 50K sq. ft.?
0.121 UF per sq. m. per month

Is there a rent review during the lease? 
No

What are the average service charges (OPEX)? 
0.02 UF per sq. m. per month

Who is responsible for the service charges?
Tenant

What are the average taxes paid on the lease?
19% (VAT)

Who is responsible for the property taxes?
Landlord

Who is responsible for the utilities?
Tenant

Who is responsible for the fit-out costs, if any?
Tenant

What is the typical security deposit?
1 month rent

How is car/truck parking paid?
Usually included in rent

Any other occupancy costs?
Utilities

What are typical agency fees? Who pays them?
Total agency fees are 4% of the total value of the lease contract with a one-month rent minimum. VAT is charge on top of the fees.

Who is responsible for legal fees?
Each party is responsible for their own legal fees.

Any other transaction costs?
Notary fees for signatures/validation are around 0.1% of the contract value. Registration fee is 0.2% of the contract value.

What is the typical land tenure?
Mostly freehold

What is the terminology of the purchase agreement?
N/A

What is the average cost?
10-30 UF per sq. m., depending on the standard

What is the agency fee and who pays?
Typical fee is 4% + VAT of the purchase price and normally shared between buyer and seller. Fees are divided as outlined above.

What is the typical LTV?
65%

What is the average borrowing rate?
4%-5%

What is the mode of payment?
Usually monthly installments of amortization plus interest. Bullet structures also available.

What are the average transaction (closing) costs?
Acquisition costs = 1.5% of the purchase value, paid by buyer. Includes: notary cost, registration fees, lawyers and others.

What is the average clear ceiling height?
8 - 10 meters

Average number of dock doors?
2 / 1,000 sq. m.

Typical column spacing?
20 meters

Average parking ratio?
0.1 - 0.3 sq. m.

Sprinkler system?
Not common, must be requested by tenant

What is the typical power supply?
40 KVA / 1,000 sq. m.