Office Space in Puerto Rico 2025: A Surge Fueled by Private Sector Expansion
Puerto Rico’s office real estate market is in the midst of a powerful resurgence in 2025. As commercial real estate professionals with decades of experience across the island, we've seen this market navigate recessions, hurricanes, and economic reform. This year, however, we're observing a strong return of demand, especially from private sector tenants.
In the first quarter of 2025 alone, according to Caribbean Real Estate Services, leasing activity increased nearly 150% compared to the same period in 2024. The total volume climbed from 50,310 square feet to 125,130 square feet. That rise is both significant and strategic, reflecting renewed confidence among businesses across multiple sectors.
A Surge Fueled by Private Sector Expansion
Private Enterprise Leading the Shift
This leasing uptick is being driven primarily by private companies that are realigning their real estate strategies. Recent standout transactions include One Alliance Insurance’s 42,330-square-foot relocation to Metro Office Park, Guaynabo, and Piloto 151’s new 28,290-square-foot coworking facility on Ponce de León Avenue in Santurce. These commitments indicate that businesses are doubling down on Puerto Rico as a stable and scalable market. Renewals are also telling a story of commitment. Baxter recently renewed its 33,476-square-foot lease in Guaynabo, another sign that larger tenants are planning for long-term operations on the island.
Growing Submarkets for Office Leasing
Two submarkets are currently leading the charge. Santurce, particularly the vibrant stretch along Ponce de León Avenue, is attracting forward-thinking companies that value urban walkability and access to talent. Its blend of art, culture, and connectivity is proving attractive to startups and established enterprises alike. Guaynabo, home to Metro Office Park and other premier developments, continues to appeal to firms looking for Class A amenities and close proximity to the San Juan metro area. Our brokerage has been active in both regions and can attest to the strong interest from both local and off-island clients.
Rising Demand and Rental Stability
Puerto Rico Outpacing Sideside Market Trends
The average asking rent has increased to $20 per square foot, up from $18.50 last year. While Class A space remains at a premium at $25 per square foot, overall pricing still offers value compared to mainland U.S. cities.
What's more encouraging is the low sublease availability. At just 0.23% of total inventory, it reflects a market where tenants are making serious, long-term commitments rather than occupying space temporarily or speculatively.
From our perspective as brokers, this kind of stability builds confidence. It allows landlords to invest in property upgrades and gives tenants predictability in their operational costs.
Long-Term Office Leases Offer Stability in a Competitive Market
As Puerto Rico’s office market tightens, long-term leases are becoming a preferred option for businesses seeking predictability and cost control. Unlike coworking spaces, which may fluctuate in price and offer limited customization, traditional leases provide tenants with fixed rates and full control over their workspace. For companies committed to long-term growth, securing a dedicated office ensures consistency, supports brand identity, and protects against volatile rent hikes.
Strategic Opportunities on the Horizon
Looking forward, additional forces may further boost Puerto Rico’s office market. Adjustments in U.S. tariff policy could prompt mainland companies to shift operations to U.S. territories. Puerto Rico stands out due to its bilingual workforce, favorable tax incentives, and federal legal protections.
Now is a smart time for businesses to evaluate office opportunities before another wave of demand drives up prices. Availability in top submarkets, such as Santurce and Guaynabo, is declining. When adding the premier Hato Rey Financial District into the mix, well-located office spaces are becoming increasingly scarce.
For those entering or expanding within Puerto Rico, Beyond Commercial Group stands ready to provide expert guidance, local knowledge, and access to premier inventory.
Frequently Asked Questions (FAQs)
1. What is causing the office market growth in Puerto Rico?
The private sector is fueling demand, along with the expansion of coworking models and a general return to in-person operations.
2. Which areas are experiencing the highest leasing activity?
Santurce, especially along Ponce de León Avenue, and Guaynabo’s Metro Office Park are key submarkets attracting new and renewing tenants.
3. How much is the average rent for office space?
As of Q1 2025, the average asking base rent stands at $20 per square foot, with Class A offices commanding base rents of approximately $25 per square foot (excluding common area maintenance, also known as CAM charges).
4. Is this a good time to lease office space in Puerto Rico?
Absolutely. Demand is rising, availability is decreasing, and current rent levels are still favorable for most businesses.
5. What long-term factors could influence the market further?
Potential tariff changes in the U.S. and increasing interest from mainland firms may accelerate stateside relocation into Puerto Rico and drive further market growth.
Disclaimer:
This article is intended for informational purposes only and does not constitute financial, legal, or real estate advice. Although every effort has been made to ensure accuracy, market conditions and regulations may change, and the data referenced may not reflect the latest updates. Readers should consult qualified professionals—such as real estate agents, attorneys, and financial advisors—before making any property-related decisions based on the information provided here. The author and publisher assume no responsibility or liability for any errors, omissions, or decisions made in reliance on this content.
