Politics Economy Local 2026-02-18T02:20:47+00:00

Argentine Government Leases Expensive Office Space Amid 'Zero Rent' Policy

Argentina's Ministry of Deregulation, led by Federico Sturzenegger, leased four floors in a prime Buenos Aires location for 720 million pesos a year. This contract sparked a political scandal as it contradicts the state's 'Zero Rent' program, which aims to save money by using public buildings. The procurement process was also criticized for being handled as a direct contract with only one bidder.


Argentine Government Leases Expensive Office Space Amid 'Zero Rent' Policy

The Argentine government, specifically the Ministry of Deregulation and State Transformation, led by Federico Sturzenegger, has leased four floors and 24 parking spaces in a building at 788 Presidente Roque Sáenz Peña Avenue (Diagonal Norte) for a total of 720 million pesos over 12 months. This contract has caused political noise within and outside the ruling coalition due to its contrast with the government's "Zero Rent" program, which aims to reduce or eliminate expenses from private leases and prioritize relocations into state-owned properties. According to administrative documentation known in recent hours, the contract establishes a monthly fee of 60 million pesos for floors 3, 4, 5, and 6, equivalent to 15 million pesos per floor, plus 24 parking spaces in the same building. The property, located in one of the most expensive areas of the City, was appraised by the National Appraisal Tribunal, which determined the monthly rental fee. The purchase order is signed by Sturzenegger on November 30, 2025, with a validity of twelve months, which implies that the State consolidated an annual commitment in the midst of an adjustment and cost-cutting strategy. One of the most sensitive points is the final real cost. In the file, a reference value was used to gauge the expense, placing the total annual rent around USD 480,000, with an approximate monthly payment of USD 40,000 and a cost per floor close to USD 10,000. The valuation report was based on an approximate area of 1,000 m² per floor, according to the calculation recorded in the same proceeding. The procedure also fueled criticism due to its modality: the contracting was processed as a direct procurement through simple adjudication, and, always according to the file's documentation, only one offer was presented, corresponding to the firm OTOBA S.A., recommended for the award as "admissible and economically convenient".

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