Lima’s Historic Center: A Surprisingly Robust Office Market Fueled by Public Sector Demand and Strategic Investment
While Lima’s modern office districts of San Isidro and Miraflores often grab the headlines, a quiet revolution is underway in the city’s historic center. A remarkable 88% occupancy rate in Class B office buildings – totaling nearly 98,000 square meters – demonstrates a resilience and strategic appeal that’s defying expectations. This isn’t a return to the past, but a reimagining of it, driven by a unique blend of government demand, cost-effectiveness, and savvy investment.
From Transnational Hub to Government and Call Center Core
For decades, Lima’s historic center was the preferred location for multinational corporations. However, as newer, more modern buildings emerged in districts like Miraflores and San Isidro, many companies migrated. Today, the area is experiencing a resurgence, but with a different tenant profile. According to Max Medina, research manager at Binswanger, the current landscape is defined by a new generation of administrative offices – meticulously conditioned interiors housed within buildings of significant patrimonial value. Iconic structures like the former Telefónica building, Fénix, South American, and Italy have been extensively renovated to meet modern corporate needs.
The Rise of Prime Fiber and Strategic Acquisitions
Central to this transformation is Prime Fiber, an investment fund now controlling a significant portion of the historic center’s office real estate. Having acquired numerous remodeled buildings previously managed by Express Art – including San Demetrio, Wiese, and Encarnación – Prime Fiber has achieved high occupancy rates and substantial revenue growth. In 2024, the fund managed 18 multitenant corporate buildings valued at US $119.8 million, generating over US $12 million in income, a 53% increase from the previous year. Their strategy focuses on acquiring already-renovated properties, capitalizing on existing tenant bases and validated potential.
Navigating Patrimonial Regulations: A Constraint and Opportunity
The historic center’s strict patrimonial conservation regulations present both a challenge and an opportunity. Demolition and new construction are severely restricted, forcing developers to focus on the restoration and adaptation of existing structures. This approach, while complex, preserves the city’s architectural heritage while providing modern office spaces. The result is a unique blend of historical charm and contemporary functionality.
Who is Driving Demand? A Breakdown of Occupancy
The demand for office space in Lima’s historic center is surprisingly diverse. Currently, 45% of the occupied space is utilized by contact centers, drawn by the lower rental costs (ranging from US $10 to US $14 per square meter) compared to more upscale districts. A substantial 38% is leased by state entities, including Sunat, the Judicial Power, and Susalud. Banks account for 11%, primarily utilizing the space for back-office operations like systems administration and internal contact centers. Scotiabank, for example, occupies a significant portion of a building dedicated solely to these functions. The remaining 6% is comprised of accounting firms, legal consultants, and other specialized services that benefit from proximity to government agencies.
Beyond the Historic Center: Offices in Shopping Malls
The trend of repurposing existing spaces extends beyond the historic center. Binswanger notes a growing number of offices located within shopping malls like Mall Plaza, Mall Aventura, and Real Plaza. These spaces, typically larger and more affordable, attract contact centers, logistics companies, and educational institutions like IPAE, Certus, and Cybertec. This model offers a unique synergy, providing tenants with access to amenities and foot traffic.
Looking Ahead: Continued Growth and Strategic Investment
Despite limitations imposed by conservation regulations, the outlook for Lima’s historic center office market remains positive. The solid demand from both the public and private sectors, coupled with the continued investment from funds like Prime Fiber, suggests sustained growth. Prime Fiber has announced plans for a new acquisition plan in the second half of 2025, signaling continued confidence in the area’s potential. The historic center isn’t poised to become a hub for flashy, high-end offices, but it’s solidifying its position as a vital, cost-effective, and strategically located option for a diverse range of businesses and government agencies.
What are your predictions for the future of office space in Lima’s historic center? Share your thoughts in the comments below!
