What Is Hat Street?
Locals and long-term visitors call it Hat Street. Its real name is Avenida B, a colonial-era road that cuts east–west through the lower half of Casco Viejo. The nickname comes from the concentration of Panama hat vendors that have set up shop here over the past few decades — but the hats are only part of the story.
Avenida B is widely considered the most authentically local street in Casco Viejo. While Avenida A and the streets near Plaza de Francia have been almost entirely taken over by boutique hotels and upscale restaurants catering to tourists, Avenida B still has hardware stores, family-run fondas, lottery ticket sellers, and residents who've lived in the same apartment for 40 years. The contrast with the rest of the neighborhood is stark and intentional — and it's exactly why this street rewards slow, unhurried walking.
History of Avenida B
Avenida B was one of the original axes of the city when Casco Viejo (then called Panama La Nueva, or Panama City's second founding) was established in 1673 after Henry Morgan's pirate raid destroyed the original settlement across the bay.
The street served as a commercial corridor throughout the 18th and 19th centuries, lined with merchant warehouses, craftsmen's workshops, and the modest homes of tradespeople who kept the colonial city running. It was never the grandest street — that distinction went to Avenida Central — but it was always one of the busiest.
During Panama's economic booms of the 20th century, much of Casco Viejo fell into disrepair as wealthier residents relocated to newer parts of the city. Avenida B declined along with the rest of the neighborhood. But unlike some streets that were demolished or entirely replaced during gentrification, Avenida B has retained much of its original character. The crumbling facades are not neglect — many are protected under UNESCO heritage rules that govern what can and cannot be changed in the old city.
Hat vendors arrived organically, drawn by foot traffic and the street's proximity to cruise ship tourist routes. Today the hats have become the street's defining image even though they represent only a fraction of what's here.
What to See on the Street
Architecture
Colonial Facades & Crumbling Grandeur
Many buildings on Avenida B date from the 18th and 19th centuries. Look for Spanish Colonial details — carved wooden balconies, wrought-iron railings, thick stone foundations — alongside the more elaborate French Republican style that was introduced during the Canal era. Some facades are mid-collapse, stabilized by steel supports while awaiting restoration funds. Others have been immaculately restored. The juxtaposition is the point.
Shopping
The Hat Vendors
The hat shops cluster around the middle section of Avenida B, roughly between Calles 4 and 7. You'll find everything from $15 tourist-grade weaves to serious superfino hats worth several hundred dollars. The density of sellers makes comparison easy — take your time and handle multiple hats before committing. Most vendors speak basic English and are used to curious visitors who buy nothing.
Culture
Lottery Ticket Sellers
The national lottery is a deeply ingrained part of Panamanian daily life, and Avenida B has some of the city's most established lottery vendors. They sit behind folding tables covered in numbered tickets, often under hand-painted signs. It's not a tourist attraction — it's just how things work here. Buy a ticket for $1 and you're participating in a tradition that goes back over a century.
Daily Life
Fondas and Corner Stores
Several family-run fondas (simple lunch spots) operate out of converted ground-floor spaces along Avenida B. No menus, no signage, just a window or open door, a pot of something on the stove, and rice and beans on every plate. These are the places where construction workers and office staff from the neighborhood eat lunch. Plates run $3–5 and portions are enormous.
Food and Drink Stops
Avenida B isn't a restaurant row — it's a working street — but there are several good eating and drinking options within easy reach:
- Fonda Los Portales — A neighborhood lunch institution. Rice, beans, meat of the day, and a refrescos natural (fresh juice). Open weekdays, lunch only.
- Café Unido (nearby on Avenida A) — A one-minute walk from the heart of Hat Street. Panama's finest specialty coffee, served in a beautifully restored colonial space. Get the Geisha pour-over if it's on the board.
- Street fruit carts — Particularly good in the mornings. Look for the vendor who sells pre-cut mango with salt, lime, and chili. Costs less than a dollar and is exactly what you need in the heat.
- Mercado de Mariscos (5 min walk) — The city's fish market is at the edge of the neighborhood. Arrive before noon for ceviche made with whatever came off the boat that morning.
Lunch tip: If a fonda on Avenida B has a handwritten sign on a chalkboard and no English menu, eat there. The food will be better and cheaper than anywhere displaying photos of dishes for tourists.
Street Art and Murals
Avenida B has become one of the main corridors for Casco Viejo's street art movement. Several large-scale murals have appeared on building facades over the past decade, many commissioned as part of neighborhood revitalization efforts or painted independently by local artists.
Key works to look for include a massive multicolored face spanning two floors near Calle 6, a geometric abstraction referencing the Guna Yala mola tradition painted on a formerly derelict corner, and several smaller works by the collective Arte en la Calle that use deteriorating walls as part of the composition — peeling paint and exposed brick become texture rather than flaws.
The murals change. Some are painted over, new ones appear. If you want to see the current state of the street art scene on Avenida B, our street art guide covers the full neighborhood and is updated regularly.
Self-Guided Walk Route
90-minute route — Hat Street & surroundings
Start at Plaza Herrera. The square at the western end of Hat Street is quieter than the main plazas and gives you a baseline for the neighborhood's pace. Note the old theater building on the south side.
Walk east along Avenida B. Take the south (shaded) side in the morning, the north side in the afternoon. Stop at whichever hat vendors catch your eye — there's no obligation to buy on the first pass.
Turn north at Calle 6 to see the large mural on the building corner before doubling back.
Continue east to the Jipijapa hat shop (if hat buying is your goal). Even if you're not buying, ask to see a Superfino vs. a tourist-grade hat side by side — most sellers are happy to explain the difference.
Cut south to Avenida A and walk the final block to the waterfront at Las Bóvedas. The contrast between Avenida A's restored grandeur and the working-class character of Avenida B is most striking here.
End at Plaza de Francia with views across the bay toward the Amador Causeway. Good sunset spot if your timing works out.
Best Time to Visit
Weekday mornings (8–11am) are ideal. The street is active but not crowded, vendors are freshly stocked and relaxed, and the light on the facades is at its best. Cruise ship passengers typically don't reach this part of the neighborhood until mid-morning at the earliest.
Avoid Saturday afternoons in high season (December–April). The combination of weekend locals, tourists, and hat-market sellers can make the street feel compressed. That said, Saturday morning markets nearby can add energy and a good reason to linger longer.
Sunday is quieter — some shops close, the fondas don't operate, and the lottery sellers take the day off. Good for photography and architecture; less good if you're here specifically to shop.
Getting There
Avenida B is inside Casco Viejo, which is accessible by taxi (10–15 min, $5–8 from most central hotels), Uber, or on foot from the Cinta Costera waterfront walk.
The neighborhood is compact — once you're inside Casco Viejo, everything is walkable. Avenida B runs roughly parallel to the waterfront, one block inland from Avenida A. From Plaza Independencia (the main square), it's a 3-minute walk west.
There is no parking on Avenida B itself. If arriving by car, park at the designated lot near the neighborhood entrance on Calle 1 and walk in.
Walk Avenida B with a Local Guide
Our colonial walking tour covers Hat Street as part of a full loop through Casco Viejo's most interesting corners. Your guide knows the history behind the facades, which hat sellers to trust, and the fondas most visitors walk straight past.
Book the Colonial Walking Tour