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Business is booming in Panama City, Panama. The Panama City Commercial real estate market reflects this. The country of Panama at the junction of North and South American and the connection of Atlantic to Pacific through the Panama Canal is in the midst of a multiyear economic expansion. Since the Panama Canal Authority took over running the Panama Canal from the United States investment has poured into Panama. Panama has the largest per capita US investment of any Latin American country. Investment does not stop with the USA. European countries led by Spain as well as Asian investors are doing business in Panama. The commercial real estate market in Panama City is hot.

When the US ran the Panama Canal the "Zona" as the locals called it was off limits except to Panamanian employees of the canal. There was a heavy US military presence including jungle warfare training in the rainforests on both sides of the canal. Now, with Panamanian administration, land on both ends of the canal is open to purchase and development. And, with efficient administration average canal transit time has decreased since 1997. Projects in Panama include the canal expansion project for ten billion dollars as well as planned port facilities to rival Houston, auto assembly plants, and warehouse facilities. Land North of the canal, within minutes of Panama City, is is being developed for housing and for business infrastructure. Commercial real estate in the suburban areas of Panama City is just picking up where as many downtown areas of Panama City have reached their sustainable value.

Panama City Commercial Real Estate prices reflect the ongoing optimism of this prosperous, democratic country. Despite higher prices there are still bargains in Panama City. Expect the economic expansion to last for a decade or more which is how long the big infrastructure projects will last. These include the addition of another wider set of locks for the canal, the digging of a tunnel to move crude oil through the bedrock across the isthmus 50 miles, an oil refinery up the Pacific coast, ongoing road improvements and the continuing construction of skyscrapers on Panama City commercial property.

Where the Bargains are in Panama City Commercial Real Estate

Panama real estate in general is experiencing a run up in prices but the deals are better in the suburbs around Panama City. In addition, in any speculative market such as is currently seen with Panama commercial real estate, local areas will get bid up and then correct even as the average cost of property increases. Using an experienced realtor such as ABPanama will help you find the deals and avoid the pitfalls in Panama City commercial real estate.

An Example or Two of Commercial Real Estate Return in Panama City

On Via España, the old Spanish Way, through the center of Panama City 484 square feet of newly constructed office space sells for $76,000.

On Calle Cincuenta, Fiftieth Street, a whole floor of an office building (more than 5000 square feet) is selling for $395,000.

In the upscale neighborhood of San Francisco 1000 square feet of office space sells for $100,000.

Investing for the Long Term in Commercial Real Estate in Panama and Winning with Investment in Panama City Commercial Real Estate

Panama's government is stable and very proactive. Tax laws favor investment by businesses and by small home owners whose mortgages are subsidized or assumed by the government. Residency requirements are easy for those who wish to move here to do business permanently. Panama's economic expansion is likely to last for a very long time. Invest in Panama City Commercial Real Estate for the long term.