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London and Regional Properties will be developing a large commercial and residential complex on the grounds of decommissioned Howard Air Force Base along the Panama Canal. According to press reports Howard Air Force Base will now be the Pacific Panama Economic Area. The Pacific Panama Economic Area will eventually cost $750 million USD to develop although the project is expected to evolve over decades. The developers are expecting investment by multinational corporations for their Latin American offices as well as other real estate uses.

London and Regional Properties plans for the Pacific Panama Economic Area to have 20,000 new homes and apartments. Over forty years the developers expect the Pacific Panama Economic Area to create 40,000 new jobs.

Press reports note that companies such as 3M and Dell have expressed interest in having office space in the Panama Pacific Economic Area.

Investment in Panama

Panama is already attracting multinational companies. Caterpillar is developing a training center as well as regional offices in Panama. Dell operates call centers in Panama. 3M is all over the world so its investment in Panama will not be a surprise.

As Latin America becomes more prosperous and trades more freely within Central and South America Panama becomes a logical choice for Latin American headquarters. As homeland security tightens US borders it becomes harder to bring employees to the USA for training. Thus Panama’s central location makes this beautiful tropical country with first world infrastructure a logical alternative and multinationals enter Panama’s real estate investment market.

As credit problems plague North America the high end of the residential housing market has leveled off. For those with ready cash the coming months will be the time to buy. Likewise to a lesser degree there may be some slowing of the commercial real estate market too. However, Panama’s conservative banks did not offer sub prime mortgages. Construction projects are still going forward as the start of the Pacific Panama Economic Area demonstrates. Investment in commercial real estate in Panama has provided nice returns on investment for a decade or more and will likely continue for years based upon Panama’s strong and diversifying economy.

The Pacific Panama Economic Area will have multipurpose buildings (flexi-buildings) as well as warehouse space and buildings strictly for offices. With the shipping container business likely to expand along with the Panama Canal Expansion investment in this piece of Panama’s infrastructure will likely provide excellent lease payments as well as a steady appreciation of real estate value. Panama’s economic growth has made real estate investments, especially commercial real estate investments, more valuable with each passing year.

North American retirees may be replaced by British and European retirees over the next few years but investment in Panama commercial and residential real estate will continue to reward the wise.

If you are interested in the Pacific Panama Economic Area or commercial real estate investment in Panama in general contact us at ABPanama. We have over 23 years experience managing real estate portfolios and would love to help you prosper in Panama real estate investment.