Beyond a Closed Door: The Signals Left by Office Vacancies in Mexico

However, relocation patterns vary across the country. In Mexico City and Monterrey, A+ space vacancies dominate, driven by an abundance of high-quality options and the stability of the Class B segment, often occupied by government institutions with long-term leases. Competition and the quest for spatial efficiency guide corporate decisions in these markets.

Querétaro presents a different dynamic. Here, Class A spaces led vacancies, showing that companies prioritize economies of scale even in markets increasingly focused on business services for the industrial sector.

In Guadalajara, Class B spaces saw the highest vacancy rates, driven by three main factors. First, the transition away from traditional industries, which have lost ground to the growing demand from the technology sector. Second, the limited presence of government institutions, which typically stabilize this segment in other markets. And third, a greater balance between the supply of mid-range and high-quality spaces, intensifying competition for tenants and disproportionately affecting Class B offices. In Guadalajara, Class B accounts for over 30% of the total inventory, compared to less than 20% in Mexico City, Monterrey, and Querétaro.

Beyond office classifications, the size of vacated spaces reveals key market dynamics in 2024.

The average size of vacated spaces was 800 square meters in the first nine months of the year, contrasting with growth in absorption rates, which tend to exceed this size across all markets. Transaction sizes have increased over the past two years in the northern, central, and Bajío regions, rising from 500-700 square meters to around 1,000 square meters. Even Querétaro, which follows a different trend, saw the average size of absorbed spaces grow from 150 to 400 square meters. This suggests that companies seek larger spaces and adapt them to more efficient and collaborative operations.

This increase in absorption does not contradict the optimization of space. In many cases, the growth in size reflects the consolidation of operations into a single location or open layouts, prioritizing flexibility and collaboration. While occupying more physical space, these configurations enhance productivity and foster horizontal structures, leaving behind traditional cubicle designs.

In this scenario, plug-and-play and coworking spaces have gained significant relevance as ready-to-use solutions. Coworking companies are among the most prominent office tenants nationwide by gross leasable area (GLA), and half of all recent office absorptions in Mexico involve plug-and-play and furnished spaces. This trend highlights a market shifting toward agile, adaptable models, where businesses aim to reduce upfront fit-out costs while maximizing operational efficiency from day one.

Mexico’s corporate real estate market is shifting toward models prioritizing flexibility, efficiency, adaptability, and sustainability. However, many spaces still fail to meet tenants’ exact specifications, often facing installation, customization, and operational functionality challenges.

In a market where strategy is everything, connecting the right properties with the right tenants can mean the difference between success and prolonged vacancies.

SiiLA SPOT offers an intelligent solution, bridging the gap between landlords and tenants through an advanced marketplace. With specialized search filters, tenants can find properties tailored to their needs, while landlords maximize their properties’ visibility to targeted audiences. Access SiiLA SPOT today, create your portfolio, and market your spaces to tenants looking for exactly what you offer! For more details, contact us at spot@siila.com.mx.