High Rents Persist in Latin America’s Core Business Hubs, JLL Finds

Office rents remain elevated in major Latin American business hubs such as Montevideo, Buenos Aires and Mexico City, while markets like Lima and San José continue to offer significantly more cost-effective options, according to a latest study by global real estate firm JLL.

The report identifies Montevideo as the region’s most expensive office market, with average Class A rents reaching US$34.4 per square meter per month. JLL attributes this premium to the Uruguayan capital’s free-trade zone regime, a small yet highly specialized office market, and a chronic shortage of high-quality supply. Vacancy rates in top-grade buildings stand at an exceptionally low 2.7%, strengthening landlords’ pricing power.

Buenos Aires ranks second, with average office rents of US$26.1 per square meter, followed by Mexico City at US$24.4. Other high-cost markets include Monterrey and Medellín, where sustained demand for modern, well-located office space continues to support higher pricing. Santiago de Chile, Guadalajara and San Juan make up the next tier, with average rents hovering around the US$20 per square meter mark.

At the more affordable end of the spectrum, cities such as Lima, Bogotá, Santa Cruz, Asunción and San José continue to offer comparatively competitive office rents, attracting cost-conscious occupiers and regional expansion strategies.

Among these, Asunción stands out for posting the strongest annual rent growth in Latin America. Office rents in the Paraguayan capital surged 23.6% year-on-year to US$18.3 per square meter, underscoring rising corporate interest in smaller but rapidly developing markets.

JLL notes that regional office demand increased by 50% year-on-year during the second half of 2024 and the first half of 2025. This rebound has been driven by economic recovery, the ongoing evolution of hybrid work models, and a pronounced “flight to quality” as occupiers prioritize premium buildings. As a result, vacancy rates across most markets have stabilized close to pre-pandemic levels.

Similar dynamics are emerging in the residential property sector. Data from Argentina’s Torcuato Di Tella University shows that housing prices across major Latin American cities rose in both US dollar terms and inflation-adjusted local currency. Montevideo, Mexico City, Monterrey and Buenos Aires feature among the region’s most expensive housing markets, highlighting sustained urban demand beyond Brazil.