Latin America boasts 34.4 million square meters of corporate offices, with Mexico City and São Paulo leading by providing 7.2 million and 3.38 million square meters of Class A spaces, respectively.
Cities like Bogotá, Santiago de Chile, Buenos Aires, Rio de Janeiro, and Lima also feature prominently, showcasing substantial premium office inventories.
In 2024, a shift towards quality and functionality defines the luxury office market’s trajectory.
Businesses now favor environments that enhance collaboration, innovation, and sustainability.
Such preferences are shaping the real estate landscape, emphasizing eco-friendly practices and advanced technology.
“The current trends steer the real estate sector towards projects that balance modernity with ecological and social responsibility,” Juan Carlos Delgado from Cushman & Wakefield in Colombia notes.
The firm identifies the locales with the priciest luxury office rents per square meter:
1. Buenos Aires leads at $24.24.
2. Mexico City follows with $23.3.
3. São Paulo is next at $22.25.
4. Santiago de Chile and Bogotá are close behind, charging $22 and $19.4, respectively.
5. Rio de Janeiro and Lima round out the list with $18.20 and $15.3.
Rodrigo Torres from JLL attributes Buenos Aires’ steep rents to limited new constructions and sustained demand for distinctive spaces.
Given that 82% of companies in the region adopt hybrid or remote work models, office quality becomes paramount.
Offices must be engaging, user-friendly, and equipped with comprehensive services to encourage attendance and optimize in-person interactions.
Class A+ offices
Why are rents for Class A+ offices skyrocketing? JLL points to a severe shortage in business districts and heightened demand for top-tier headquarters.
This scarcity, alongside the hybrid work trend and high interest rates, curtails new developments.
Companies seek spaces that enhance the workday experience with efficiency, sustainability, and modern amenities, complemented by a strong service offering.
“In particular areas like between Calle 116 and 72 in Bogotá, the demand far outstrips the supply, leading to pre-completion occupancy and allowing for higher rents,” Delgado explains.
Firms opting for high-end offices typically aim to distinguish themselves in a competitive market, prioritizing the quality of their workspaces for branding and operational efficiency.
Health, finance, and tech sectors lead this demand, valuing employee comfort, a robust corporate image, and the flexibility to adapt to market shifts.