The Resilience of Puerto Rico’s Commercial Real Estate Market
The commercial real estate (CRE) sector in Puerto Rico is navigating a challenging landscape, marked by rising interest rates and shifting work patterns. In 2023, the market faced significant hurdles due to the lasting impacts of the COVID-19 pandemic, high inflation, and multiple increases in interest rates. These factors have dampened demand for office spaces and other commercial properties, leading to declining asset values across the board.
Despite these challenges, experts suggest that Puerto Rico’s CRE market is performing better than many areas on the U.S. mainland. Retail spaces, particularly open-air grocery-anchored shopping centers, are thriving due to lower overhead costs and strategic locations. The occupancy rates for these centers have reached impressive levels, with some reporting occupancy rates as high as 96.5%.
As the market adapts to these changes, it remains crucial for investors and stakeholders to stay informed about economic trends and consumer preferences. The resilience shown by certain segments of the CRE market indicates potential growth opportunities in a landscape that is otherwise fraught with uncertainty.
Source: https://newsismybusiness.com/puerto-ricos-commercial-real-estate-hangs-on-after-triple-whammy/
Photo: El Nuevo Día
