According to Binswanger there are 10,000 m² of office space under development: 60000 m2 of class A and 40,000 m² of class B. There are at least seven premium prohects under development. Who are behind them?

The office maket – both class A (premium) and class B (boutique) – is starting to reactivate, attracting the interest of real estate investors and other sectors due to the positive projections. According to the latest study by the consulting firm Binswanger, at least seven class A office projects are currently being develop in Lima, to which several more are being added in the boutique office segment. Who are behind these new projects?

Max Medina, manager of Studies and Research at Binswanger, told Gestión that the class A office market is preparing for a new cycle. Although no new premium supply will incorporated in 2025 and 2026, the sector is already showing signs of reactivation, with projects that seek to anticipate a scenario of lower vacancy. Currently, this rate is around 16%, but it is estimated to fall back to 13% this year and reach a healthy 10% in 2026.

«Faced with this projection, real estate companies and investors have begun to prepare developments that will be delivered between 2027 and 2028, given the long-term nature of this type of investment», said the expert. Thus, among the projects underway are Torre Rosales, of the Urbanova real estate company, located in San Isidro Financiero, with 30,000 square meters (m²) of office space.

In addition, there is a 10,000 m² builiding of Pacífico Seguros, also in San Isidro Financiero, of which a part will be occupied by the company itself and another part could enter the market depending on the demand. It is likely to be ready by the end of 2026.

More 2 will offer complete 1,300 m² floors, as well as boutique offices ranging from 80 m² to 160 m², and they are even evaluating the possibility of including a coworking space. Two more class A projects are also under evaluation in Surco. One is located near the Jockey Plaza and the other in the vicinity of El Derby Avenue.

Together, it is estimated that these new developments will add approximately 60,000 m² to the market.

Negotiation margin falls:

Another fact identified in the premium segment, Medina detailed, maintains a reasonable margin to negotiate which allows companies looking to rent to still find various alternatives.

«For example, if before a company requiring 1,000 m² could choose from ten options today that number has been reduced to five or six. However, by 2026, this availability could decrease even further, being limited to just two or three options for every search of that size», he explained. This scenario suggests that the current time is more favorable for closign deals with better terms, as tenants’ bargaining power tends to diminish as the offer is reduced.

Medina recalled that, while in the post-pandemic period it as common to close contracts with discounts of 10% to 15% with respect to the list price, today this margin has dropped to between 5% and 10%. And if the trend continues (leveraged by the reduction in vacancy), Binswanger estimated that in two years this negotiation range could fall even further, to between 3% and 6%.

Class B developments:

Class B or boutique office developments are gaining ground among real estate investors, driven by steady demand that shows no signs of slowing. Like premium offices, this segment has gained relevance in the market. According to Medina, one of the projects under development is the Marina City Center, in San Miguel, by Inverdes, which includes four towers of housing and type B offices, located next to the UPC.

Antoher Class B office project in Barranco is also under development, although details are being withheld for the time being. In Callao, offices of this category are expected to be developed inside the new Jorge Chávez airport. In Miraflores and San Isidro, boutique offices, smaller focused on sales, are being implemented. «A boutique can be defined as a Class A office project, but in a compact format. They offer common rooms, with surfaces ranging from less than 100 m²«, he indicated. These new develpments will bring around 40,000 m² to the market.

One point to note is that, unlike what is happening with premium offices, in the Class B office segment there will be a supply of new availability for 2025 and 2026. For example, this year, close to 20,000 m² will be added.

Medina indicated that there is a phenomenon in this market that, although common in other countries, is starting to become more frequent in Peru: buildings or company headquarters that cease to be so in order to be acquired by investment funds are then relaunched on the market in rental format. An example of this is the headquarters of Prima AFP in San Isidro Financiero. «The upper part of the building, which was previously intended for the exclusive use of the company, was purchased by Fibra Prime. This investment fund plans to offer these floors to the market under the rental modality», he noted.

He added that this type of transaction, in which an owner sells his property to later be offered as a rental, will also contribute to increasing the supply of class B offices.

Source: Diario Gestión