The office market in Mexico is recovering from the pandemic's adverse effects. Availability has shown a downward trend since December 2022, with prices remaining practically unchanged since 2020. Another significant trend in this segment is related to the types of properties that exist and are being absorbed. Nationally, most of the existing and absorbed inventory consists of Pre-Build and Plug & Play properties. However, in markets such as Monterrey, Guadalajara, and Queretaro, most of the inventory is Core & Shell, according to data from SiiLA in the second quarter of 2023, presented during the Market Overview on Thursday, July 20.

Alejandro Delgado, Country Manager Mexico at SiiLA, pointed out that the industries that have experienced the most growth in the Mexican office market over the past 12 months are finance, administration and public services, healthcare, coworking, and services. In contrast, the sectors with the most significant decline were communication and printing, information technology, commerce, transportation and logistics, as well as notary and legal services.

The growth of the industries above reflects changing needs and new business opportunities. On the other hand, the decline in the mentioned sectors may be related to changes in work patterns and certain services' digitization.

In this context of gradual recovery, the second quarter of 2023 witnessed significant property deliveries, such as Llevel Polanco, Lago 12, and Torre Sur of Distrito Santa Fe in Mexico City. These Class A and A+ properties together cover over 82,000 square meters. Additionally, Torre Helice and Torre GVO were delivered in Monterrey, totaling 26,000 square meters of A+ class spaces. It is important to mention that most of these buildings were delivered occupied, reflecting the growing dynamism in the office sector.

The deliveries of newly occupied properties demonstrate dynamism in the office market and reflect increased confidence and economic recovery. Moreover, it is worth mentioning that since late 2022, in a context where the availability rate has been trending downward, the most resilient or improved markets have been Guadalajara, Mexico City, and Monterrey.

Overall, these trends suggest that the office market in Mexico is in a phase of adaptation and transformation, where companies are seeking quality spaces tailored to new needs, with greater efficiency and space flexibility.

SiiLA's Market Overview is a quarterly exclusive event for clients, where the latest data, analysis, and trends in the office, industrial, and retail segments at a national level are presented. For more information about the commercial real estate market landscape, visit SiiLA or contact us at contacto@siila.com.mx.