By Victor Lopez-Beltran (lower left photo) and Asieh Mansour (top right photo) of CB Richard Ellis, Los Angeles, CA-- • Latin America has emerged as an important destination for both investors and corporate occupiers. The region offers significant locational advantages, including a relatively young population, solid economic growth and a growing affluent consumer base.
• The economic outlook varies from country to country. South and Central American economies are facing rapid economic growth and rising inflationary pressures. By contrast, Mexico is faced with deteriorating growth prospects in the near term.
• With the exception of Mexico, Latin America's commercial real estate market conditions are strong. Healthy consumer spending and commodity-driven economic growth is fueling the region's retail centers and housing markets and driving demand for office and industrial space. Cross-border capital flows have bolstered investment sales, rendering the region an important target destination for global investors.
• Latin America's commercial real estate markets—the office sector in particular—reflect the different market dynamics present in each of the key countries. Net absorption of commercial space will continue to be supported not only by multi-national firms but also by domestic sources of demand.
• New development will continue to be absorbed at a fast pace, as corporate occupiers upgrade existing real estate needs.
• The long-term outlook for Latin America is positive, but near-term risks remain and the trajectory for the commercial real estate markets will vary by country.
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