What is the average Class A rent in Panama City?

Around 264 USD/sqft/yr ($264 USD) across the broader Class A index. Trophy submarkets like Banking District (Calle 50) command 20–40% above that.

How many months of rent-free are normal in Panama City?

10 months on a 5-year deal is the standard benchmark. Lease-up product or tenants with strong covenant strength can push higher.

Are rents rising or falling in Panama City?

The Panama City Class A market is currently softening. Vacancy is 26.4%, which sets the negotiating context.

Headline Class A rent in Panama City is around 264 USD/sqft/yr ($264 USD), with 10 months of typical rent-free on a 5-year term.

Headline Class A rent: 264 USD/sqft/yr ($264 USD).
Trophy submarket rents (Banking District (Calle 50)) push to roughly $312/sqm/yr · ≈ $29 PSF/yr USD.
Typical concessions on a 5-year deal: 10 months free rent.
Vacancy stands at 26.4% — market trend is softening.
Use effective rent (face minus PV of concessions), not headline, to compare deals.

Panama City Class A office rents and incentives

Headline Class A rent in Panama City is around 264 USD/sqft/yr ($264 USD), with 10 months of typical rent-free on a 5-year term.

TL;DR

Headline Class A rent: 264 USD/sqft/yr ($264 USD).
Trophy submarket rents (Banking District (Calle 50)) push to roughly $312/sqm/yr · ≈ $29 PSF/yr USD.
Typical concessions on a 5-year deal: 10 months free rent.
Vacancy stands at 26.4% — market trend is softening.
Use effective rent (face minus PV of concessions), not headline, to compare deals.

Headline rent vs. effective rent

Asking rents in Panama City are quoted in USD per sqft per year. Across the broad Class A index the figure is 264, but the trophy tier in Banking District (Calle 50) reaches roughly $312/sqm/yr · ≈ $29 PSF/yr USD. Always discount headline rent by the present value of free rent and fit-out-capex">tenant improvement allowance to land on effective rent — the only number that compares cleanly across deals.

Rent-free and TI

Standard Panama City concessions on a 5-year Class A lease run to 10 months of base-rent abatement. Trophy lease-ups can push rent-free 25–40% above that benchmark. Local cost-of-occupancy is also shaped by tax — Panamanian corporate tax of 25% on territorial income (only Panama-source). 7% ITBMS (VAT). Multinationals HQ regime (SEM) provides tax incentives.

Where rents land by submarket

Banking District (Calle 50) sits at the top end (~$312/sqm/yr · ≈ $29 PSF/yr USD). Obarrio / Marbella clears around $264/sqm/yr · ≈ $24.5 PSF/yr USD as the prime tier. Panama Pacífico represents the value end at ~$240/sqm/yr · ≈ $22.3 PSF/yr USD. The full submarket map is on the Panama City city page.

Key facts

city	Panama City
country	Panama
region	Americas
classARentLocal	264 USD/sqft/yr
classARentUsd	$264/sqft/yr
vacancy	26.4%
typicalLeaseYears	5
typicalRentFreeMonths	10
submarkets	5
primeYieldPct	7.4%
trophyRent	$312/sqm/yr · ≈ $29 PSF/yr USD
primeRent	$264/sqm/yr · ≈ $24.5 PSF/yr USD

Frequently asked questions

What is the average Class A rent in Panama City?: Around 264 USD/sqft/yr ($264 USD) across the broader Class A index. Trophy submarkets like Banking District (Calle 50) command 20–40% above that.
How many months of rent-free are normal in Panama City?: 10 months on a 5-year deal is the standard benchmark. Lease-up product or tenants with strong covenant strength can push higher.
Are rents rising or falling in Panama City?: The Panama City Class A market is currently softening. Vacancy is 26.4%, which sets the negotiating context.

Editorial provenance

Reviewed by Class A Atlas Editorial Desk — House byline · global editorial team. Last updated 2026-04-15. See our methodology and editorial standards.

Primary sources for this page

CBRE Marketview reports — CBRE
JLL Office Insight — JLL
Cushman & Wakefield Marketbeat — Cushman & Wakefield
Savills World Research — Savills
Colliers Global Office Outlook — Colliers

Full sources index · Submit a correction