Pridco seeks contractor to analyze industrial property rentals
The Puerto Industrial Development Co. (Pridco) has released a request for proposal (RFP) to procure a contractor for conducting market rental analysis of industrial properties on the island. Proposals are due by Feb. 28 and must be submitted via email in a searchable Adobe Acrobat PDF format.
“The purpose of this analysis is to estimate the actual Market Rent for varying industrial spaces throughout the different regions that comprise the private industrial market. PRopósito, Puerto Rico’s Economic Development Strategic Plan, contains the road map for increasing Puerto Rico’s competitiveness,” the RFP reads. “Infrastructure availability and ease of doing business are quintessential for the competitiveness equation. Low business costs are central to the need of promoting ease of doing business.”
The document specifies that an increase in Pridco’s current rental rates “cannot and should not be dependent” exclusively on Puerto Rico’s private sector industrial rental rates.
“On the contrary, it should depend on what our competitors abroad are charging for similar square footage, service, and offerings,” the RFP states. “Consequently, the industrial market rent analysis must include an evaluation and understanding of the rates of jurisdictions that directly compete with Puerto Rico for the establishment and expansion of industrial and manufacturing operations including, without limitation, the following: North Carolina, South Carolina, Texas, California, Arizona, Mexico, El Salvador, Costa Rica, Panama, Dominican Republic, Ireland, Singapur, Korea, among others.”
Pridco owns an extensive inventory of industrial properties, with around 1,500 units and more than 700 lots across Puerto Rico. The portfolio comprises industrial and commercial-use buildings and lots available for rent or, in some cases, purchase.
The existing real estate portfolio of Pridco includes 22.8 million square feet of buildings, with 15.9 million occupied, 1.8 million under “negotiations/reserved,” 1.4 million vacant and 3.6 million not unavailable for rent due to the need for “structural repairs or remediation,” the government-owned corporation said.
Corporations, partnerships or any other legal entities based in a U.S. state or Puerto Rico must be duly registered or able to register to do business in both jurisdictions and comply with all applicable laws and regulations upon signing of definitive agreements, the RFP adds.
Pridco’s rental rates were established from a market rent study in October 2002, and are categorized into five regions or zones across the island’s municipalities.
Zone 1 includes the municipalities of San Juan, Carolina, Trujillo Alto, Caguas, Guaynabo, Bayamón and Cataño. Zone 2 consists of Río Grande, Humacao, Las Piedras, Juncos, Gurabo, San Lorenzo, Cidra, Cayey, Toa Alta, Toa Baja, Dorado, Vega Alta and Vega Baja.
Zone 3 covers Fajardo, Luquillo, Ponce, Manatí, Barceloneta, Arecibo, Mayagüez and Aguadilla. Zone 4 comprises Canóvanas, Aguas Buenas, Guayama, Salinas, Coamo, Santa Isabel, Villalba, Juana Díaz, Peñuelas, Guayanilla, Yauco, Guánica, Sábana Grande, San Germán, Lajas, Hormigueros, Cabo Rojo, Rincón, Añasco, Moca, San Sebastián, Isabela, Quebradillas, Camuy and Hatillo.
Lastly, Zone 5 consists of Culebra, Vieques, Ceiba, Naguabo, Loíza, Yabucoa, Naguabo, Patillas, Arroyo, Comerío, Naranjito, Barranquitas, Aibonito, Orocovis, Morovis, Ciales, Florida, Jayuya, Utuado, Adjuntas, Lares, Maricao, Las Marías and Aguada.
The RFP outlines that the rental rate card should be created with rental ranges for each geographic zone, adjusting for criteria such as individual municipality and building type.
“The selected proponent shall recommend the rental rate cards based on the criteria listed herein in addition to any other pertinent criteria they deem to be necessary,” the RFP explains. “Potential criteria to be considered may consist of, but are not limited to, occupancy history, building quality, tenant history, and special building improvements. More importantly, the rental rate cards should further and protect Puerto Rico’s competitiveness; promote industrial establishment and manufacturing expansion; ensure that Puerto Rico is attractive for investment; and consistent with the public policy of making Puerto Rico the ideal place to do business.”
