Peru One of World's 'Tightest Office Markets'

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With economic growth of 6.3 percent last year, Peru is facing a shortage of office space.

In Lima "existing office properties are near capacity, increasing competition for leases, spiking rental rates and spurring developers to build new offices," according to a recent Jones Lang LaSalle report.

Lima's office vacancy rate is 1.1 percent, one of the lowest rates in the world, according to JLL data. Rents have increased by 30 percent over the last five years as companies compete for space in the capital city.

The fundamental growth of Peru's economy is driving office take up. Direct foreign investment could reach a record US$6.5 billion this year, positioning the country as the top-performing country in Latin America, JLL reports.

"The Peruvian government's focus on the nation's fiscal health has cut the debt-to-GDP ratio in half since 2001 and significantly increased GDP per capita," JLL research director for Southern Latin America Martin Potito said. "Businesses are growing incredibly fast here and have taken every available space, and that has given landlords free rein to ramp up rents."

Lima's office market is expected to add 340,000 square feet in new developments within the next two years, which JLL expects will stabilize the vacancy rate at 8 percent to 10 percent.