Nearshore Americas

Office Vacancy Hits Record Highs in Buenos Aires

Remote work arrangements are apparently having a catastrophic impact on the Buenos Aires office market.

A recent study by real estate consulting firm CBRE shows that vacancy rates in Argentina’s capital have reached an all-time high of 18%.

Many companies are cutting their long-term office leases because they no longer need as much space for their employees, with many of them working from home. In other words, several businesses in the services sector are looking for smaller and more adaptable spaces.

Despite the country experiencing rising inflation of more than 100%, office rent is decreasing. The average rent for office space in Buenos Aires dropped by 10% over the past year.

CBRE’s predicts that rent will continue to decrease in the near future as the market adapts to an oversupply of office space.

The last time Buenos Aires saw such a drop in office occupancy was in 2001, when the country was facing its worst economic crisis.

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The report also attributes the increase in vacancies to the economic recession and the uncertainty around upcoming national elections.

“The office market in Buenos Aires is facing a number of challenges,” said Juan Manuel Carretero, Head of Research for CBRE Argentina. “However, we believe that the market is starting to show signs of recovery, and we expect the vacancy rate to gradually decrease in the coming years.”

Narayan Ammachchi

News Editor for Nearshore Americas, Narayan Ammachchi is a career journalist with a decade of experience in politics and international business. He works out of his base in the Indian Silicon City of Bangalore.

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