Real Estate Transformation: Latin America's Strategic Realignment

For decades, the health of Latin America’s commercial real estate sector was measured by a straightforward, purely quantitative metric: volume. How many square feet were developed, how many corporate towers were delivered, or how many industrial parks broke ground. However, in today’s economic landscape, that traditional formula falls short. The region is no longer experiencing a routine cyclical expansion; it is undergoing a profound, structural shift in how organizations conceptualize, occupy, and optimize space.

Today, the dialogue has become infinitely more human-centric and complex. Real estate strategies are inextricably tied to employee well-being, talent attraction in hybrid work environments, the resilience of digital infrastructure amid the surge in Artificial Intelligence, and the pressing need for urban planning that prevents cities from suffocating under their own growth.

This transformation is not happening in a vacuum. Looking at market dynamics through Turner & Townsend's operational lens—through which our Latin American business expanded by 163% between 2024 and 2025 and is projected to grow by a further 37% through the end of 2026 — we see a clear macroeconomic barometer. It reflects a region learning to move forward at multiple speeds through an increasingly diversified portfolio.

From Offices to Ecosystems

What are companies prioritizing when reviewing their real estate portfolios today? The answer is no longer a simple cost-per-square-foot calculation. The Occupier & Portfolio business line has emerged as the clearest indicator of this mindset shift, representing 47% of our regional activity in 2025 following a 234% year-over-year increase. It is on track to reach roughly 48% of our regional business in 2026, backed by a projected 40% growth rate.

This trend confirms that organizations are fundamentally reassessing the relationship between physical space, productivity, and corporate culture. Offices are no longer mandatory clock-in destinations; rather, they are strategic tools designed to foster collaboration, agility, and a sense of purpose.

Geographically, Mexico and Brazil accounted for nearly 80% of regional activity in this sector during 2025, with Mexico contributing nearly half of the total and Brazil roughly a third. Brazil’s growth was particularly notable, surging over 1,000% between 2024 and 2025, complemented by strong gains in Argentina (280%), Mexico (158%), and Colombia (89%). Looking ahead through 2026, demand across the region is becoming more balanced: while Brazil is projected to lead, followed by Mexico and Argentina, we are seeing significant momentum in Colombia (expected to grow by 220%) and Chile (which could expand by over 300% compared to 2025). The drive to modernize the workplace is no longer unique to mature markets — it has become a standard across the region.

Invisible Infrastructure: The Backbone of the Digital Economy

If the workplace represents the human element, data centers serve as the nervous system of Latin America’s modern economy. The surge in e-commerce, cloud adoption, and AI deployment demands significant, capital-intensive physical infrastructure built with technical precision.

Within Turner & Townsend’s regional portfolio, the Data Center sector grew by 42% between 2024 and 2025 — accounting for 21% of our overall business — and is projected to accelerate by 63% in 2026, bringing its share to nearly a quarter of total regional operations.

What stands out is how Latin America’s digital footprint is shifting. In 2025, Brazil led data center activity in the region with a 36% share, followed closely by Mexico and Chile at 25% each. However, our 2026 projections indicate that Mexico will capture nearly 59% of regional activity in this sector, while Brazil will represent 17%, Chile 14%, Uruguay 6%, Colombia 4%, and Peru under 1%. This pivot underscores Mexico’s strategic role as a logistical and technological bridge to North America, while demonstrating that the region is building an interconnected network where countries contribute based on their grid capacity and digital maturity.

Industrial Realignment and Urban Scale

Meanwhile, nearshoring dynamics and demand for advanced logistics facilities drove 400% growth in the Industrial & Science sector between 2024 and 2025, representing 28% of our regional activity, with Mexico, Brazil, and Colombia leading the charge. For 2026, we anticipate a slight low-percentage adjustment — a shift that reflects market normalization following an extraordinary expansion cycle rather than any structural concern.

Concurrently, Urban Development is entering a rapid growth phase. Following a 22% increase between 2024 and 2025, we project a substantial 142% surge in 2026 (a cumulative rise of nearly 195% compared to 2024). In this case, Mexico and the Caribbean are leading the expansion pace, followed by Brazil, Chile, and Peru. The takeaway is clear: major Latin American metropolitan areas cannot simply build more; they require complex, integrated master planning that balances transit, land use, green infrastructure, and livability.

Macroeconomic Snapshot by Market

Evaluating these operational metrics confirms that Latin America is not a single economic narrative, but rather a dynamic landscape of markets at varying stages of maturity:

• Mexico: Remains the region’s largest market. Its 157% growth between 2024 and 2025 stems from a resilient, diversified portfolio, with Data Centers and Urban Development serving as key growth drivers for 2026.
• Brazil: Recorded the highest growth among established markets between 2024 and 2025 at 252%, fueled by combined strength across Occupier & Portfolio, Industrial & Science, and Data Centers.
• Argentina & Colombia: Posted gains of 186% and 155% respectively between 2024 and 2025, showing strong absorption in portfolio optimization and industrial solutions.
• Chile, Peru and Uruguay: Expanding at 55%, 797%, and 7% respectively between 2024 and 2025, these markets continue to secure strategic positions in digital infrastructure and specialized niches, offering compelling opportunities as they open and scale.

Ultimately, expansion metrics and growth percentages are only meaningful when they inform long-term strategy. The true maturity of Latin America’s real estate sector will not be measured solely by deployed capital, but by organization's ability to combine global expertise with deep, localized market knowledge.

Latin America is forging multiple growth paths at once. From our position at Turner & Townsend, we will continue to advise and support our clients in delivering complex programs that respond to current market shifts while actively shaping the future of real estate and infrastructure across the region.