2025: How Much Will Mexico’s Office Market Grow, and What Trends Will the New Inventory Reflect?

Unstoppable momentum? Despite economic uncertainty, Mexico could add around 350,000 square meters of office space in 2025… if projects can overcome construction challenges and avoid delivery delays.

Quality, sustainability, and size diversity will define the offices slated for 2025, with a projected volume nearly 20% higher than anticipated for the end of 2024.

Pedro Dávila is the founder of Quantium Desarrollos, which administrates the Alaia Cumbres Center in Monterrey. Photo: SiiLA

By: SiiLA News

11/21/2024

Mexico’s office market appears determined to keep growing in 2025 despite global economic uncertainty and signs of a domestic slowdown. So far, 21 new buildings are in progress, adding over 350,000 square meters of gross leasable area (GLA) to the sector, according to SiiLA data.

While these developments are still in the project and construction phase—meaning potential delays—the projected delivery pace for next year aligns with the average of the past four years, when about 20 buildings were added annually. In fact, from early 2020 through the end of 2024, the market will have added nearly 90 buildings and over 1.4 million square meters.

However, this growth isn’t just about volume. Projects set for delivery in 2025 reflect clear trends in the evolution and sophistication of Mexico’s real estate market.

The vast majority—around 98%—will be class A+ buildings, showing a strong preference for high-quality, cutting-edge facilities. Some projects, such as the Corporativo Jaime Nunó in Mexico City, will enter the market with green certifications, reaffirming that in a country where around 36% of buildings are certified, sustainability remains a priority, not only to attract companies committed to reducing their carbon footprint but also to secure sustainable financing.

Moreover, 43% of the new buildings will be medium-sized, ranging from six to 15 floors, with an average GLA per building of 15,000 square meters. Of the rest, 33% are large buildings, with more than 16 floors and an average GLA of over 20,000 square meters, while 24% will be smaller, with less than five floors and an average of 10,000 square meters.

This diversification in offerings reflects a competitive market, where variety becomes a value-added strategy that caters to the specific profiles of certain tenants, aligning vacant space with the operational demands of each sector. This adaptability strengthens market resilience, allowing it to respond to business trends.

Location and Performance Outlook

The supply of new office spaces rebounded in Mexico over the past year.

The diversification in offerings also stems from the geographical distribution of office space, as each market has its demand characteristics.

For example, the Greater Mexico City area will account for six out of every ten square meters projected for 2025, with developments like Espacio Condesa by FIBRA Plus in the Insurgentes submarket. Up north, particularly in Monterrey, three out of every ten square meters, including projects like Alaia Cumbres Center, will be delivered. The Bajío region, led by Guadalajara and Querétaro, will contribute the rest, with notable initiatives such as Bravante Business Center and Torre II at Avanta Gardens.

If projections hold, the office space expected to be delivered in 2025 would be roughly 20% greater than the anticipated deliveries in 2024, marking two consecutive years of sustained growth after a 53% drop between 2022 and 2023.

Although the supply is recovering, it remains below pre-2022 levels. This trend is not only due to the pandemic, which affected the construction sector and slowed demand for office spaces, but also reflects a natural market cycle: following a boom in office construction in Mexico, especially from 2013 to 2018, a downward adjustment ensued.

Despite what happens from December of this year onward, Mexico’s office market stands at a crossroads requiring caution and adaptability. With global economic pressures shaping business decisions, efficiency and cost optimization will set the tone for 2025. This suggests companies will carefully assess every move within the sector, seeking spaces that meet their operational needs and align with their long-term strategies.

Want to learn more about the performance of Mexico’s office real estate market? Visit SiiLA REsource or reach us at contacto@siila.com.mx.

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