Best Locations in Panama City for Opening a Café, Studio, or Retail Shop
If you’re an entrepreneur looking to open a café, boutique retail shop, art studio, or wellness space in Panama City, choosing the right location is everything. The success of your business often depends less on what you offer — and more on where you’re located.
In this guide, we break down three of the best neighborhoods for launching creative or customer-facing businesses: Casco Viejo, Obarrio, and Chanis. Each offers a distinct vibe, customer base, and opportunity level.
Casco Viejo (San Felipe): Tourism + Character + Foot Traffic
Casco Viejo, also known as San Felipe, is the most iconic historic district in Panama City — and a top destination for both locals and tourists. Cobblestone streets, colonial buildings, and constant foot traffic make it a magnet for unique experiences.
Why it’s great for cafés, boutiques, and studios:
- Heavy foot traffic from tourists and locals year-round
- A strong demand for artisanal, handcrafted, and boutique experiences
- Rooftops and courtyards ideal for cozy cafés or bars
- Ideal for boutique galleries, yoga/wellness spaces, and concept shops
Things to consider:
- Restoration costs can be high for older buildings
- Limited parking and higher rent
- Zoning and preservation regulations apply
If your brand values character, storytelling, and culture, Casco Viejo is a top-tier location..
Obarrio: Visibility + Business Footprint + Urban Energy
Obarrio is a business and residential district in the heart of modern Panama City. Known for its vertical growth and high-density activity, it’s ideal for brands seeking exposure and accessibility.
Why it’s great for retail and service-oriented spaces:
- High visibility from vehicle and foot traffic
- Great for franchise cafés, tech repair shops, fashion retail, or showrooms
- Wide variety of commercial storefronts and mid-size spaces
- Surrounded by banks, offices, and residential towers — built-in customer base
Things to consider:
- Rent may be higher depending on the location
- Less "cultural" charm compared to Casco Viejo
- Ideal for brands looking for a polished, urban presence
Obarrio is the right choice if your priority is high exposure, business traffic, and infrastructure.
Chanis: Affordability + Community Growth + Emerging Demand
Chanis is an up-and-coming neighborhood east of the city center, offering a more residential-commercial blend. It’s perfect for entrepreneurs looking to launch with lower overhead in a growing local market.
Why it’s great for cafés and community-driven businesses:
- Lower rental or purchase costs compared to Obarrio or Casco Viejo
- Great for local-focused cafés, salons, wellness studios, and neighborhood retail
- Less saturated, meaning more opportunity to stand out
- Increasing residential growth = rising demand for local services
Things to consider:
- Less walk-by traffic than Obarrio or Casco
- Need to target community marketing and word-of-mouth
- Long-term growth potential, but less immediate flash
Chanis is ideal if you're starting small but want room to grow in a supportive, untapped neighborhood.
Key Factors to Consider When Choosing Your Location
Regardless of where you open, keep these key decision points in mind:
- Target audience: Locals? Tourists? Office workers?
- Foot traffic vs. destination traffic: Do people pass by, or will they come to you?
- Infrastructure: Does the space have ventilation, plumbing, electrical, etc. for your business type?
- Parking & accessibility
- Permitting & zoning requirements
- Brand alignment with the neighborhood’s identity
Ready to Find the Right Commercial Space?
Whether you’re opening a boutique, launching your café concept, or turning your creative vision into reality,
Panama City has the right neighborhood for you. Let our team at FCA Group help you find the perfect space in
Casco Viejo,
Obarrio, or
Chanis.
Browse commercial listings or
Contact us to get personalized help today.
