Savills North America introduced an affiliation settlement with Caribbean Actual Property Companies, a number one Puerto Rico-based tenant advisory agency.
The affiliation with CRES strengthens Savills’ community within the Americas and enhances its potential to higher advise shoppers with a presence in Puerto Rico or these trying to increase there, Savills North America President Janet Woods advised Industrial Property Govt.
“Puerto Rico shares sturdy synergies with most of the markets we serve, together with New York and South Florida, which have deep-rooted connections to the island,” Woods stated.
Hector Aponte, managing director at CRES, advised CPE that his agency gives an entire suite of business and industrial actual property companies, together with market analysis, tenant illustration and inclinations.
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He stated CRES additionally assists firms with exporting items and companies domestically after which helps those self same firms in penetrating markets within the Americas and world wide.
Puerto Rico’s CRE market growth
The industrial actual property market in Puerto Rico is projected to achieve greater than $80.5 billion by 2025 earlier than declining barely over the subsequent 4 years.
Statista confirmed Puerto Rico’s annual progress price (CAGR 2025-2029) of -0.45 p.c, leading to a market quantity of $79.14 billion by 2029.
The Puerto Rican industrial actual property market is experiencing progress and improvement, in addition to two notable developments.
As a result of Puerto Rico is a well-liked vacationer vacation spot, there was elevated funding in tourism-related properties. Buyers give attention to growing resorts, motels and leisure venues. This progress is fueled by the increasing tourism trade and authorities efforts to draw extra guests.
Secondly, with a rising variety of startups and entrepreneurs on the island, there was rising demand for reasonably priced and collaborative workspaces. This pattern aligns with the evolving work tradition, which embraces distant work and freelancing alternatives.
Puerto Rico extends favorable tax incentives. Its standing as a U.S. territory provides distinctive benefits, together with tax breaks for companies and people, which have attracted important funding. These embrace:
Act 20 (Export Companies Act) is a 4 p.c tax price on earnings from eligible companies supplied to shoppers outdoors Puerto Rico, benefiting sectors like consulting, engineering and R&D.
Act 22 (Particular person Buyers Act) eliminates taxes on capital features, curiosity and dividends for brand spanking new residents who meet particular necessities.
Act 73 (Financial Incentives for Improvement) gives tax credit for actions corresponding to job creation, analysis and improvement, in addition to renewable power investments.
Puerto Rico additionally provides decreased charges or exemptions for sure kinds of actual property tasks.
