In Panama developers are being more cautious when making decisions regarding the construction of industrial projects, as they prefer to build buildings based on the needs and demands of customers.

In the current situation of the country, where investment in new construction, additions and repairs, reports a 9% contraction until October 2019, developers in the industrial real estate market have chosen to migrate to the “Built to Suit” (BTS) leasing model.

In the past, businessmen used to buy land and build industrial buildings, but now they prefer to focus their investments on their clients’ production processes.

Learn more about CentralAmericaData‘s “Real Estate Project Feasibility Studies“.

Aida Michell de Maduro, president of the Panama Free Zone Association, explained to Panamaamerica.com.pa that “… BTS is a link to bring added value to products, so that it is as close as possible to the end user. The most important thing is that the free trade zones are that base of added value, because of the geographical position of the country and to be able to reach their final destinations.”

Also see “Big Data and Real Estate Market”

Real estate companies believe that according to current contract trends, customers have more advantages over developers.

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Eileen Chevez, market research consultant for Grupo Siuma, said that “… we have now become a buyer’s market, where buyers have an advantage over the seller in terms of negotiating the prices requested.”