Palermo lives two faces. On one hand, one of the most important commercial avenues in Buenos Aires City registers a vacancy higher than the general market average and a sharp drop in rental values; on the other hand, one of the most popular shopping centers among locals awaits the arrival of H&M in Argentina and is undergoing a major transformation.
The stretch of Santa Fe between Scalabrini Ortiz and Pueyrredón is 1.6 km long and concentrates 345 commercial premises within a total universe of 5,000 surveyed in CABA. It is one of the most important commercial areas of Palermo as a neighborhood and of the City in general, with good accessibility, high pedestrian flow, vehicular traffic, public transport, and a key player in the Buenos Aires consumption map: the Alto Palermo shopping mall.
However, this privileged location was not enough to avoid the changing times. Vacancy in the corridor reached 6.67%, above the 4.6% registered by the general market, according to a survey conducted by LJ Ramos. At the same time, the average asking price stood at US$29/m², slightly below the general average of US$30.4/m² per month.
But, despite these data, the strongest blow is seen in the year-on-year comparison. The area, like other important corridors in the City, such as Avenida Cabildo in Belgrano, for example, suffered a significant drop in just one year. Vacancy increased by 6.4% and the asking price fell 29 percentage points compared to the 2025 survey. The data marks a turning point for an avenue that, in recent times, had been seen as part of the recovery of commerce. The new measurement shows that “given the expectation of non-renewal of contracts by some tenants, many owners choose to anticipate and start looking for new tenants before the properties become vacant, thus avoiding prolonged periods of vacancy,” they explain in the report.
Even so, the diagnosis is not necessarily pessimistic. For Marcelo Zuliani, from Colliers, the market is going through a breaking point rather than a trend of permanent deterioration. “We are at a time where statistics say we are experiencing the lack of consumption from last year and this year it is not recovering, and empty stores are starting to appear. But at the same time there is news of international brands that will come and that generates competition between sectors. We are at a breaking point, I do not see vacancy continuing to increase,” he stated.
And that situation is seen inside the Alto Palermo Shopping Center, where the arrival of H&M in Argentina is beginning to take shape. The Swedish fast fashion chain is negotiating with IRSA, the company that owns the main shopping centers in the country, to open its first store in the country. If the planned schedule is completed, the landing would take place in November in one of the busiest shopping centers in Buenos Aires City: Alto Palermo, on Avenida Santa Fe. The choice of location by Eduardo Elsztain’s company confirms the brand’s commitment to the Palermo neighborhood as a gateway to the Argentine market.
The landing of the Swedish brand in the country had been announced in April. Now, a key detail has been revealed: it would open its doors in November, although operational and commercial aspects of the project still need to be defined. The opening of H&M adds to other renovations that Elsztain’s company is carrying out at the Buenos Aires shopping center. Among the new international brands setting foot in Argentina is Miniso, which will open its store in the Palermo shopping center this Friday, July 24. Also recently incorporated are Victoria’s Secret (at the end of 2025) and the Italian lingerie brand Intimissimi, while Adidas and Nike are advancing with a renovation of their stores.
The arrival of the Swedish chain will be, however, one of the most significant moves of the shopping center. Not only would it be the first H&M store in Argentina, but also the entry of one of the world’s largest players in the fast fashion business. The company, founded in Sweden in 1947 by Erling Persson, markets clothing, footwear, accessories, cosmetics, and home products. Its model is based on offering trendy designs at affordable prices, with a high turnover of collections. Currently, the group has nearly 4,000 stores distributed in more than 79 countries and records annual sales exceeding US$22 billion.
The local operation would be in charge of Hola Moda, a Panamanian capital group created in 2020 to develop H&M’s business in Latin America. The company’s name precisely shares the initials of Hennes & Mauritz, the full name of the Swedish chain. The landing would be carried out through an increasingly used scheme by large international fashion firms, which, instead of operating directly in each country, partner with regional groups that know the markets, manage the stores, and have experience in import, logistics, and marketing. It is a strategy similar to that used in Argentina by other global brands.
A few blocks from the shopping center, the company would invest about US$10 million in the remodeling of the historic building of the former National Directorate of State Industries, known as DINIE, located at the corner of Avenida Coronel Díaz and Beruti. The property would be transformed into a mixed-use complex that includes commercial and gastronomic spaces on the first levels and offices on the upper floors. The intervention would also include the restoration of the original facade, as the building is listed with a Protective Caution level. The work would take approximately six months, and the real estate holding’s expectation is that the first commercial and corporate spaces could begin operating during the first half of 2027.
The building has an approximate covered area of 8,137 m², distributed over three basements, ground floor, and six levels. Currently, the headquarters of Commune 14 operates there. However, the General Directorate of Urban Interpretation of the Buenos Aires government recently approved the feasibility of the project presented by IRSA and authorized the location of the new planned uses. The company acquired the property on February 18, 2022, through a public auction organized by the City Government via the electronic platform of Banco Ciudad. The company won the bid with an offer close to $2,158.6 million. Adding the purchase price and the planned investment for remodeling, the total outlay for the project would be around US$30 million.
The company’s strategy in the area also included the recent opening of Palermo Off, an open-air commercial gallery located where Paseo del Sol previously operated.
para mi es una locura los kukas llorando crisis y palermo se llena de marcas chetas h&m miniso obvio porque los zurdos no entienden de laburo solo de planes viva la libertad carajo agusd proud
Para mí esto es una cachetada a los laburantes. Mientras no llegamos a fin de mes, abren sucursales en Palermo. Esto huele a especulación y lavado de guita, no a inversión. Los chetos festejan, los pibes se cagan de hambre. ¡Viva la lucha de clases!