Insights on Santiago, Chile
March 10, 2020
The Capital of Chile, Santiago is the largest office market in Chile. Chile is the seventh largest country by land mass in South America. The long narrow stretch of land between the Pacific Ocean and the Andes mountain range that makes up the South American country of Chile is the richest on the continent. As well as enjoying high living standards and a developed economy, Chile is also one of South America’s most advanced sovereign states, leading the charge in Latin America when it comes to human development, economic freedom, globalization, low corruption, and low homicide rate. Thanks to the strength of its mining, business and personal services, wholesale, retail trade, and manufacturing, the country enjoys a per capita of $27,058.
Knight Frank has offices around all of South America including Santiago. Newmark Knight Frank produces research reports for all of Latin America on a quarterly basis. Below we attach the Q3 2019 Office Market Report for Santiago which is produced in English. Our contact in Santiago is Ignacio Errazuriz, Managing Director of Corporate Services at Newmark Knight Frank Chile. Please contact him for a complete insight into the Santiago market.
I found Santiago to be a sophisticated inland city planned around the Mapocho River. The water level of the river was very low and the climate hot so it was surprising to see so much greening of the city. The local guide explained that water came from neighbouring dams and was in plentiful supply. Locals irrigated their gardens and lawns or hand watered regularly. I was told there was a real sense of pride in cleanliness and home presentation.
Image: Mapocho River with Gran Torre Santiago building in the background.
In keeping with this pride is the construction of Gran Torre Santiago. This is the tallest building in South America at 64 levels and designed by Argentinean architect, Cesar Pelli for German born, Chilean based billionaire, Horst Paulmann. I saw striking similarities of GTS to San Francisco’s 61 storey Salesforce Tower. Upon further investigation and not surprisingly both are designed by the same architect.
The area around GTS is newer and many of the buildings are very modern and attractive. Whilst Santiago is a prosperous city it is not without protest. The strong economy has produced a surging middle class, yet many locals still do not feel wealthy. A recent and very minor increase in transport costs has created riots and protests on matters like minimum wage, superannuation and healthcare costs. The protests are quite violent and result in shop windows being smashed and buildings being graffitied. You don't get the feeling that you are unsafe however, building owners have had to increase their private security teams, to barricade the ground floor windows and doors in order to protect their properties.
Image: Public monuments are all graffitied.
Benefits – Richest and most prosperous country in South America. Also, the only member in SA of the OECD. Rising middle class.
Issues – As a result of the city being surrounded by mountains a layer of pollution gathers above it which is difficult to clear. Protests are occurring weekly over cost of living issues, minimum wage and superannuation.