Savills North America announced an association agreement with Caribbean Real Estate Services, a leading Puerto Rico-based tenant advisory firm.
The association with CRES strengthens Savills’ network in the Americas and enhances its ability to better advise clients with a presence in Puerto Rico or those looking to expand there, Savills North America President Janet Woods told Commercial Property Executive.
“Puerto Rico shares strong synergies with many of the markets we serve, including New York and South Florida, which have deep-rooted connections to the island,” Woods said.
Hector Aponte, managing director at CRES, told CPE that his firm provides a complete suite of commercial and industrial real estate services, including market research, tenant representation and dispositions.
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He said CRES also assists companies with exporting goods and services locally and then supports those same companies in penetrating markets in the Americas and around the world.
Puerto Rico’s CRE market expansion
The commercial real estate market in Puerto Rico is projected to reach more than $80.5 billion by 2025 before declining slightly over the next four years.
Statista showed Puerto Rico’s annual growth rate (CAGR 2025-2029) of -0.45 percent, resulting in a market volume of $79.14 billion by 2029.
The Puerto Rican commercial real estate market is experiencing growth and development, as well as two notable trends.
Because Puerto Rico is a popular tourist destination, there has been increased investment in tourism-related properties. Investors focus on developing resorts, hotels and entertainment venues. This growth is fueled by the expanding tourism industry and government efforts to attract more visitors.
Secondly, with a growing number of startups and entrepreneurs on the island, there has been increasing demand for affordable and collaborative workspaces. This trend aligns with the evolving work culture, which embraces remote work and freelancing opportunities.
Puerto Rico extends favorable tax incentives. Its status as a U.S. territory offers unique advantages, including tax breaks for businesses and individuals, which have attracted significant investment. These include:
- Act 20 (Export Services Act) is a 4 percent tax rate on income from eligible services provided to clients outside Puerto Rico, benefiting sectors like consulting, engineering and R&D.
- Act 22 (Individual Investors Act) eliminates taxes on capital gains, interest and dividends for new residents who meet specific requirements.
- Act 73 (Economic Incentives for Development) provides tax credits for activities such as job creation, research and development, as well as renewable energy investments.
Puerto Rico also offers reduced rates or exemptions for certain types of real estate projects.