Rate Report 3Q/2023

Our Real Estate team led by the Lead Advisory and Corporate Finance & Transactions partner; Emilio Venegas, the Corporate Finance & Transactions manager; Catalina Chávez, and the Senior Analyst; Carolina Ciucani at BDO Chile has prepared a new edition of the Discount Rates Report, corresponding to the third quarter of 2023.

During the analysis period corresponding to the third quarter of 2023, an average increase of 62 basis points is observed in the discount rates of the Real Estate, Office, Residential, Commercial, Strip Center, Industrial and Development sub-industries.

The main cause of the variations in Real Estate discount rates is due to changes in the market credit spread and an increase in the risk-free rate by 68 basis points. The impacts in all cases were negative given that the reduction in the credit spread of Offices, Strip Center and Industrial, for example, did not compensate for the negative impact of the increase in the risk-free rate.