# Panama City Class A office rents and incentives

> Headline Class A rent in Panama City is around $264/sqm/yr · ≈ $24.5 PSF/yr USD, with 10 months of typical rent-free on a 5-year term.

**Canonical URL:** https://classa.info/cities/panama-city/rents-and-incentives
**Page type:** city-topic
**Last updated:** 2026-04-15T00:00:00.000Z
**License:** CC BY 4.0 with attribution to Class A Atlas (https://classa.info).

## TL;DR
- Headline Class A rent: $264/sqm/yr · ≈ $24.5 PSF/yr USD.
- Trophy submarket rents (Banking District (Calle 50)) push to roughly $312/sqm/yr · ≈ $29 PSF/yr USD.
- Typical concessions on a 5-year deal: 10 months free rent.
- Vacancy stands at 26.4% — market trend is softening.
- Use effective rent (face minus PV of concessions), not headline, to compare deals.

## Key facts
- **city**: Panama City
- **country**: Panama
- **region**: Americas
- **classARentLocal**: $264/sqm/yr · ≈ $24.5 PSF/yr USD
- **classARentUsd**: $25/sqft/yr
- **vacancy**: 26.4%
- **typicalLeaseYears**: 5
- **typicalRentFreeMonths**: 10
- **submarkets**: 5
- **primeYieldPct**: 7.4%
- **trophyRent**: $312/sqm/yr · ≈ $29 PSF/yr USD
- **primeRent**: $264/sqm/yr · ≈ $24.5 PSF/yr USD

## FAQ
### What is the average Class A rent in Panama City?
Around $264/sqm/yr · ≈ $24.5 PSF/yr USD across the broader Class A index. Trophy submarkets like Banking District (Calle 50) command 20–40% above that.

### How many months of rent-free are normal in Panama City?
10 months on a 5-year deal is the standard benchmark. Lease-up product or tenants with strong covenant strength can push higher.

### Are rents rising or falling in Panama City?
The Panama City Class A market is currently softening. Vacancy is 26.4%, which sets the negotiating context.

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Citation: Source: Class A Atlas (https://classa.info/cities/panama-city/rents-and-incentives), updated 2026-04-15T00:00:00.000Z.