Office rental prices are falling across Latin America, largely due to currency devaluation and the growing popularity of remote-working.
In Brazil’s Rio de Janeiro and Peru’s capital city of Lima, a square meter of office space fetched an average US$16 last year, according to global commercial real estate services firm Cushman & Wakefield.
High vacancy rates, combined with excess supply, are pushing the rental prices downwards in both cities. According to the report, rental prices are not likely to go up in the near future.
During the same period, a square meter of office space cost nearly $25 in Buenos Aires, $19 in Santiago Chile, and $18 in Bogota.
More offices are falling vacant in Bogota and Santiago, largely due to remote-working trends. However, the report analysts say there is a huge opportunity for investment in commercial properties, pointing to the potential economic growth in these cities.
Although workers are returning to offices in the Brazilian city of Sao Paulo, rental prices are not moving up.
Meanwhile, many businesses are constructing hybrid offices, giving their employees the option of working from both the office and home.