Mexico City, the largest office market in Mexico, boasts more than 8.2 million square meters of class A+, A, and B properties. After two years of the pandemic, which slowed the national economy, this market regained its strength last year.

SiiLA Market Analytics reported a reduction in available office inventory in Mexico City in 2022. In fact, the availability rate in the last quarter of the year was the lowest in 2022, standing at 21.6%.

The reduction in office availability in Mexico City is attributed to the absorption or occupancy of space, which reflects the reactivation of investments in the market. In 2022, gross absorption, or tenant arrivals, increased after two years of decline. On the other hand, net absorption, the difference between tenant arrivals and departures, was positive, though at lower levels than those reported before the pandemic.

In this context of a partial recovery of demand in the office sector in Mexico City, there is also a greater dynamism in the supply of new inventory. Five major projects that will total more than 100 thousand square meters are already underway and set to be delivered in 2023, exceeding the volume of square meters delivered in 2020.

SiiLA has presented some of the upcoming office projects in Mexico City that will be the talk of the town in the coming years:

1.     Miyana Torre II: A Class A+ development by Gigante Grupo Inmobiliario located on Avenida Ejercito Nacional in the Polanco submarket. It includes 25 floors of office space that will occupy an estimated 61.8 thousand square meters.

2.     Llevel Polanco: A Class A+ building in the Miguel Hidalgo district by Republica Arquitectos with 15 levels of office space and eight levels of parking. The property's gross rentable area (GLA) will be close to 23 thousand square meters.

3.     Montes Urales 350: A Class A+ property in the Lomas Palmas submarket with an approximate GLA of almost 10 thousand square meters. The project includes 12 levels with seven office floors and three parking floors.

4.     Lago 12: A Class A development by Grupo Impulsa located in the Polanco submarket. It will have 13 levels, 12 for offices and one for retail, covering an approximate GLA of 5.7 thousand square meters.

5.     Corporativo Trio: A Class A+ building in the Santa Fe submarket with three floors of office space. Developed by Bosco Arquitectos, the corporate building will have a calculated GLA of more than 3.9 thousand square meters.

These five properties will be located in the Lomas Palmas, Santa Fe, and Polanco submarkets, which account for just over 40% of Mexico City's office inventory. Through the fourth quarter of 2022, the three submarkets averaged an availability rate of more than 20%.

For more information and insights on Mexico's commercial real estate market, please visit SiiLA or write to us at contacto@siila.com.mx.