Increases in the average price of office space have been recorded due to less construction of these types of buildings in the first half of the year.

Figures from a report by CBRE Panama cited by Capital.com.pa indicate that construction has declined in this segment due to increases in the price of materials and high utility rates, leading to the average price of  “… class B buildings rising from $2,300 to $2600 per square meter.”

See “Panama: Construction Figures – I quarter 2016“

Despite the increase, “… rents in the office market remained stable at an average income of $27 per square meter per month in Class A + buildings, $25 in Class A buildings and $19 in Class B buildings”.

The report adds that “… average rents in the office market remained stable during the first half of 2016. The report stressed that ‘at present there are very favorable conditions for new tenants, due to an excess of supply which has built up over the past 24 months’.”