Despite Vacancies, Double-Digit Increases For Buenos Aires Retail Space

Patrick Archer average prices, buenos aires events, competitiveness, franchises, real estate

Rental rates for Buenos Aires retail space in key corridors are rising in step with inflation, despite a higher number of retail vacancies compared to one year ago in Capital Federal.

Shuttered storefronts form part of the new landscape, a product of a cooling in consumption and greater caution among Argentines,” while those who remain in business ” face rising labor and maintenance costs in addition to lower profit margins,” writes iProfesional’s Patricio Eleisgui.

He says retail business owners in Buenos Aires are renegotiating their peso-denominated rents this year with 25% increases and, in many cases, 13% increases every six months. If the retailer has a good payment history or operates a location with high maintenance costs or merchandise import taxes, landlords are often willing to lower the rates to keep a good tenant.

The Buenos Aires retail corridors where retailers pay the highest monthly rents are Avenida Alvear in Recoleta (US$100 per m2), Calle Florida in Microcentro (US$80) and the intersection of Avenida Santa Fe & Callao.(US$70 per m2). (Full Story in Spanish)

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