Puerto Rico Office Report, Q4 2019
The Puerto Rican office market has been historically stable; however, recent natural and political events have been causes of both concern and optimism for the private sector, which drives the demand for office space in Puerto Rico.
The ongoing recession, which began in 2006, has finally come to an end, with the Island poised to post a 2 percent growth in 2019. The recession was caused by a number of factors, which included: the expiration of corporate – primarily pharmaceutical – tax benefits in 2006, the exodus of talent to the main land United States, and mounting government debt obligations.
Surprisingly, Hurricane Maria appears to have had little dramatic effect on the overall health of the Puerto Rican office market; however, the storm took a toll on local physical office infrastructure outside of the newer, Class A buildings in Hato Rey and Guaynabo. The island is showing resilience, with the office market poised to make a comeback after two years of recovery.