During the second quarter of 2023, the Mexican real estate market experienced significant dynamism with 141 offices transactions, as reported by SiiLA data. These transactions involved the absorption of over 103,000 square meters, mainly (98%) in high-end Class A+ and A spaces.

The analyzed transactions refer to property rentals and provide insights into market dynamics, economic activity, and investment opportunities. In fact, based on their initial rental prices, which may vary during negotiations, these transactions are estimated to have the potential to generate around 28 million dollars annually in rental payments. This figure highlights the corporate real estate market's significant economic and financial impact on the country.

In addition to the number of transactions recorded during the second quarter of 2023, which slightly exceeded the average number of quarterly transactions (140) since 2020, the most noteworthy aspect is that the absorbed area was 60% larger than that in the first quarter of the year and was even the second highest of any second quarter in the last three years. This growth trend reflects the recovery of office demand at the national level, in the context of sector adaptation to companies' new needs, seeking more efficient and flexible spaces, such as conditioned and plug & play offices.

Among the productive sectors that demanded the most space in the last three months were healthcare, coworking, administration and public services, information technology, and e-commerce, which absorbed 37% of the negotiated area in transactions.

In that regard, according to SiiLA Market Analytics, some of the companies that occupied more space during the second quarter of this year include Hospital MAC, a chain of medical facilities with offices in Torre Sur de Distrito Santa Fe in Mexico City, and the government agency Servicio de Administracion y Enajenacion de Bienes (SAE), which has one of its headquarters in the Torre Helice in Monterrey. Other significant firms that absorbed corporate spaces include American Airlines, Iberdrola, Mercado Libre, Samsung, and Spaces, to name a few.

Notably, 67% of the absorptions from the 141 transactions occurred in Mexico's Central region. Another 23% was concentrated in the Northern area and the remaining 10% in the Bajio region of the country.

These figures highlight the role of Mexico's Central region as one of the most developed and economically active areas in the country, mainly due to companies, government agencies, and economic activities concentration that create an attractive effect for businesses seeking to capitalize on commercial opportunities and establish strategic synergies in the region. However, the Northern and Bajio regions also demonstrated significant dynamism, possibly related to the economic development and commercial opportunities arising from the arrival of new industries and the need to have a presence in the commercial development hubs at the national level.

The Mexican office market is experiencing positive dynamism, as reflected during the second quarter of 2023, with significant transactions and a notable surge in absorptions. If you want to learn more about this and other topics, we invite you to explore SiiLA REsource or contact us at contacto@siila.com.mx.