COSTA RICA

OVERVIEW:
• At Mid-Year 2010 the Costa Rican market is recuperating well.
• The office market is showing a steady recovery although the overall vacancy rate is 10.6%. It rose that
high due largely to blocks of space becoming available in the highest prestige complexes. Given that it is
highly desirable space, it should be absorbed in a short period of time – within 6 to 9 months. Approxi-
mately 75,000 m2 of 2010 and 2011 inventory are under construction and should finish within the next
10 months. Prices should continue stable for at least two more quarters; no softening of lease rates is
foreseen when buildings currently under construction come on line. Demand should keep pace.
• The industrial market experienced a strong recovery; its crisis gradually dissipating and free zones,
warehouses and office warehouses have vacancy rates below 5%. Investment projects under construc-
tion or about to start are more active. At least 5 new office/warehouse projects entered the market since
January. This further good news shows the banks renewed interest to provide credit for new projects with
more accessible terms and conditions.
• The retail market still experiences strong, steady demand. Multiplaza Escazú’s latest stage generated
enormous pre-leasing and demand has remained strong. In malls, occupancy and pricing have remained
stable. In strip and neighborhood centers occupancy has decreased slightly. Their tenants were more
susceptible to the slowed economy; different retailers have closed or changed for less expensive sites.
Prices therein are gradually increasing to previous levels. New projects continue, especially within the eastern portion of San Jose.
• The industrial and office property market could expect a significant recovery by the end of 2010, returning to normal behavior where the completion
of inventory goes hand in hand with economic growth.
PRIME RENTS
OFFICE RETAIL INDUSTRIAL/WAREHOUSE
Location C$/m2/mo. US$/m2/mo. Trend Location C$/m2/mo. US$/m2/mo. Trend Location C$/m2/mo. US$/m2/mo. Trend
San Jose 8,892 17.3 Stable San Jose 10,537 20.50 Stable San Jose 2,056 4.00 Stable

PRIME YIELDS COUNTRY STATISTICS PRINCIPAL LEASE TERMS

(NET RENT/PURCHASE PRICE) %
Office Trend Area (Km2) .................................51,100 Lease Length (YRS).................3-10 years
10% Stable Population (Country)...............4,500,000 Rent Paid ....................................Monthly
Retail Trend Rent Reviews ...................... End of Term
Capital ................................... San Jose
11% Stable
Indexation .............................Annual/CPI
Industrial/Warehouse Trend Population
(City).......................................1,600,000 Repairs & Maintenance
10% Stable
Landlord .................................. Structural
KEY TRANSACTIONS Tenant................................. Maintenance
• In Avenida Escazú, PINMSA leased 6,000 m2 of
office space. ECONOMY
PRINCIPAL BUSINESS TAXES
• At the El Cedral Business center, BID (Banco In-
teramericano de Desarrollo) leased 3,000 m2 of
space. VAT ..................................................13% Current Currency ................. Colones (C)
• In the UltraPark II industrial and office complex,
HP leased 12,500 m2 of office space. Transfer Tax ....................................3.0% GDP (Billions) .................................$30.4
• Multiplaza Mall in San Jose West opened its fifth
expansion with almost all 60,000 m2 pre-leased. GDP / Capita .......................... $6,726.3
• El Condal Group has initiated two office complex- GDP Growth (forecast 2010)............3-4%
es almost at the same time, one in the east side of
San Jose and the other one in the west side of San Inflation .........................................6.31%
Jose.
• A new mixed-use complex has begun construc- Interest Rate .....................................N/A
tion in the east side of San Jose. This complex is
called “Momentum” and is the same concept as Conversion US$:514.00 CRC: 1.00 Unemployment Rate..........................N/A
and developer of the “Momentum Lindora on the
west side of San Jose.
• On the east side of San Jose a 30,000 m2 complex
began construction called “Oficentro MIRA” - it is
already 70% pre-leased.