Palermo's Avenida Santa Fe sees rising vacancies and falling rents after brief recovery

Once hailed as a commercial corridor regaining its former glory, Avenida Santa Fe in Buenos Aires's Palermo neighborhood is now showing a less positive picture. Within just one year, the avenue has seen a notable rise in vacant commercial spaces and a sharp drop in rental values, reversing its recent recovery.

The specific stretch between Scalabrini Ortiz and Pueyrredón, a 1.6 km segment with 345 commercial establishments, is one of Palermo's most important retail zones. Its prime location, boasting good accessibility, high foot traffic, and proximity to the Alto Palermo shopping mall, has historically made it a key consumer destination. However, this privileged position has not shielded it from a "change of era."

Recent data reveals a vacancy rate of 6.67% on Avenida Santa Fe, surpassing the general market average of 4.6%. The average asking rent has also dipped to US$29/m², slightly below the city-wide average of US$30.4/m². The most striking change is the year-over-year comparison: vacancy has increased by 6.4%, and asking rental prices have fallen by 29 percentage points since 2025.

This downturn marks a significant break for an avenue that had been seen as part of a broader commercial recovery. Market analysts suggest that as some tenants anticipate contract non-renewals, many property owners are proactively seeking new tenants to avoid prolonged vacancies. However, the current economic climate means brands are far more selective. "The rent must align with expected sales, and today consumption is not keeping pace," explained Santiago Winokur, a retail broker. "If owners are unwilling to accommodate their tenants, few brands can afford these rents."

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The rent must align with expected sales, and today consumption is not keeping pace. If owners are unwilling to accommodate their tenants, few brands can afford these rents.