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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