Latin America. The office market in South America is beginning to recover. According to the latest report by Cushman & Wakefield, office availability in the region has dropped to 19.43%, thanks to economic stability and growth in sectors such as technology, finance and services. São Paulo and Bogota lead the demand, while Lima and Santiago also show progress.
The report highlights that São Paulo had the highest demand in seven years, with more than 150,000 m² occupied in 2024. Bogota also showed a good performance, with an availability of 10.5% and growth driven by the arrival of international companies. Lima closed the year with more than 40,000 m² occupied, with one of the lowest vacancy rates in the region.
"The performance of each market was strongly conditioned by the local economic context. While in cities such as São Paulo, Bogotá and Lima the demand showed greater dynamism, Buenos Aires and Santiago reflected a more unstable behavior," explained Juan Carlos Delgado, Country Manager of Cushman & Wakefield in Colombia.
"The performance of each market was strongly conditioned by the local economic context. While in cities such as São Paulo, Bogotá and Lima demand showed remarkable dynamism, with sustained growth in key sectors such as commerce and technology, in others such as Buenos Aires and Santiago a more unstable behavior was observed. This was mainly related to factors such as exchange rate volatility, high inflation rates and political challenges, which affected consumer confidence and investments in these markets," explained Juan Carlos Delgado, Country Manager of Cushman & Wakefield in Colombia.
Fewer empty offices, more opportunities
The report notes that the reduction in available spaces varies by city. São Paulo closed 2024 with 17.35% of unoccupied offices, while Bogotá and Santiago remain close to 10%, reflecting a balance between supply and demand. Lima has a rate of 14.4%, driven by high demand and fewer available spaces. In contrast, Rio de Janeiro continues to have a vacancy of 29%, due to a supply of offices that exceeds demand.
"While the office market continues to recover, vacancy remains a challenge in certain cities, especially where the entry of new inventory exceeds current demand," Delgado added.
In addition, Cushman & Walkield highlights that the recovery of the office market is aligned with the growth of the logistics sector, where vacancy in logistics centers has decreased by 55% in some key markets, reflecting greater occupancy in commercial and business spaces.
Likewise, port activity in the region experienced significant growth, with increases of 20% in Brazil and 13% in Colombia, which has generated greater dynamism in the business and office sectors.
Rental prices: stability and adjustments
Rental prices changed in the region. In Buenos Aires they remained between USD 24–25/m²/month. In São Paulo, although there was a record in local currency, the devaluation reduced the price in dollars to USD 21/m²/month. In Santiago, values fell to USD 19–20/m²/month, and in Bogotá they stood at USD 18–19/m²/month, with a growth projection of over 700,000 m² in new projects. Lima, with its low availability, had a progressive increase to reach USD 16.5/m²/month.
What to expect in 2025?
The office market in South America continues to evolve with positive expectations for 2025. Economic recovery and growing demand in key cities will boost the sector. It is important to note that the consolidation of e-commerce and omnichannel have directly impacted the demand for spaces, both in logistics centers and in corporate offices.
Also, as interest rates have come down and investment in commercial real estate continues to strengthen, the supply of premium spaces is expected to continue to adjust to new business needs.
