The San Juan Metro office market continues adjusting to post-pandemic workplace norms, with vacancy rising to 26.5% in 2026 from 25.5% in 1H 2025
29 May 2026
Insight
29 May 2026
Office Report (San Juan Metro) - 1H 2026
Categories:
Authors
Andy Carlson
Vanessa Perez
Dylan Harrison
Frances Torres
- Market Adjusts to New Normal: The San Juan office market continues to experience downsizing activity, though at a moderating pace, as tenants adapt to hybrid work models and pursue cost optimization strategies through consolidation and lease flexibility.
- Shifting Lease Structures Reflect Tenant Caution: Companies are increasingly negotiating early termination options and shorter effective commitments, with typical 5-year terms including 3-year termination clauses and 10-year terms with 7-year outs, signaling ongoing uncertainty about future space needs.
- Landlord Flexibility Increases as Competition Intensifies: Rent softening is evident across the market as landlords offer expanded concessions including tenant improvement allowances for select spaces, extended construction periods with free rent, and even rental rate reductions to retain and attract tenants in an increasingly competitive environment.