Real Estate Retail Market in Panama
Even do the global economic crisis hasn’t done any good to Panama, it hasn’t slowed down severely the growth in Panama´s economy neither.
This is because the domestic economy remained strong in sectors as transportation by land, telecommunications, insurance and financial auxiliaries, mining and quarrying, residential properties and construction.
Since Panama has a central location, and a high percentage of foreigns visiting all the time for multiple reasons, the retail space vacancy has been falling steadily since 2004. Because of this a high percentage of international retailers are relocating to Panama City´s new and existing Class A malls and shopping centers.
The vacancy rate for Class A buildings in Panama City decreased dramatically in 2009, and the inflation remained low, so sale and rental prices didn’t increase that quickly, this kept the market attractive.
The average lease rate for Class A office buildings increased from 23 USD to 25 USD per square meter during 2009, and their sale price increased from 2,385 USD to 2,490 UDS also during 2009. We can see they increased slightly but are still relatively stable.
The asking lease rate varies per submarket, for example the most expensive ones are in San Francisco, due to its central location, other Class A buildings currently in market are in the Banking area, South and Costa del Este and lots of square meters are under construction and soon to be delivered.