During the last twenty years, Latin America has undergone important political, social and economic changes that have affected the productivity and competitiveness framework of the countries that make up this region, leading them to be recognized as emerging economies that have significantly increased their commercial markets and the retail activity.
The development of the region, can be evidenced with a high growth of the business in large Shopping Centers. Greater consumption, combined with the diversity in the real estate offer, as well as a great variety of products, services and entertainment, have turned this type of development into an axis of business, investment and employment opportunities.
The presence of large shopping centers in Latin America is strong; The commercial mix in these buildings is abundant and sophisticated and has local and international tenants that range from basic consumption to luxury stores with global prestige.
While it is true, in most countries local brands have managed to expand taking advantage of the geographical diversity of the real estate offer, however, the most outstanding are currently international, which are promoted in different countries through franchises, which allow the distribution of goods and services through chains with brands much more recognized by consumers.
The growth of the commercial real estate offer has not been exclusive of the large international chains in large commercial centers, you can also see a tendency to develop new types of smaller formats, dedicated to serving much smaller areas of influence.
On the other hand, and from the point of view of the profitability on the real estate investment, the developments of mixed use are becoming more frequent; These allow people to mix activities such as work, rest, entertainment and consumption in one place. This tendency arises in the first instance, due to the need to exploit more efficiently the land, especially where land is scarce and its cost is much higher. This type of projects have been quite successful in terms of demand, reaching very high levels of placement even during the construction stage.
For the next few years, we can observe a trend towards the realization of new projects with a greater degree of sophistication in aspects related to design, security, comfort and the adequate mix of tenants that allows investors to maintain the levels of demand obtained until today.
Commercial Real Estate Market in Latin America
Date Published: 30/10/2015