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It appears as through port workers are being laid off in Colon. With a reduction in world trade and especially trade between China and the USA there appears to be less cargo passing through Colon’s ports. The reports of layoffs are from the port workers’ union. Officials at Colon report reduced volume but have not cited figures.

The Panama Canal Authority Web Site does not have current figures on tonnage for January and, in fact, usually provide very comprehensive reports but not current ones.

Real Estate and Panama Canal Traffic

The question for investors in Panama commercial real estate is what will happen to investments related to shipping, transportation on land, and cargo container facilities. It is certain that there will be some degree of downturn. However, a great bulk of world shipping passes through Panama and will continue to do so to save on the trip around South America.

We have consistently promoted commercial real estate investment in Panama and continue to do so. However, timing is important. Just like the high end of the residential property market, especially in Panama City, there will be highs and lows in pricing. We are, in fact, opening a “distressed property” site to help distressed sellers and buyers with cash get together to move residential property in this market.

Despite what appears to be a temporary downturn in shipping volume the world’s economy will come back and those invested in port facilities, container shipping support, transportation support facilities will prosper. Now is probably the time to look for a targeted real estate investment in Colon or along the developing areas in the Canal Zone.

Bidding is going forward for the Panama Canal Locks and the winning consortium will be announced this summer. The project is on time and expected to be done in 2014. When the Panama Canal Expansion is completed the canal will have doubled its capacity and will allow substantially larger, “cape size,” ships to pass. World trade passed through the Isthmus of Panama and will continue to at a larger volume when oil prices go back with the easing of the recession.

The advantage of commercial property in Panama versus residential is that there are no rent controls. Also facilities tend to be multiuse or multiuser. That is if one business moves on there is always another that needs office, warehouse, or retail space.

ABPanama believes that over the next year or so property prices will resume their upward climb. Commercial property may dip somewhat in selected areas but will also climb again with Panama’s business success. A targeted real estate investment at the right time could reap rewards in the form of lease payments for years to come while you practice sailing off Colon Province’s Caribbean coast.

If you are interested in commercial real estate in Panama come to see us at ABPanama. We are bilingual, we do business throughout Panama, and we have over 23 years experience managing real estate portfolios.