In Premium Offices, the Rival May Be Across the Street

The same concentration of movements between adjacent classes—and the same near-symmetrical relationship between higher and lower classes—was also observed across corporate sectors. However, some accounted for a larger share of cases. Nearly half corresponded to real estate and financial companies, while another 32% was distributed among legal, insurance, automotive, construction, energy, logistics, technology, and business services firms.

Taken together, the data point more to a gradual reshuffling within segments than to a radical substitution between them. Rather than abrupt shifts between opposite ends of the market, the movements appear to reflect adjustments among comparable assets, where competition is concentrated around marginal differences in cost, efficiency, age, amenities, and operations.

The trend also does not appear limited to the period analyzed, but rather part of a recurring pattern. The six quality transitions studied—from A+ to A buildings, A to A+, A to B, B to A, A+ to B, and B to A+—recorded low coefficients of variation, between 1.5% and 5.2%, indicating minimal fluctuations relative to their historical averages. In addition, correlations between the percentage composition of each quarter exceeded 0.998, confirming that the structure of movements remained virtually constant throughout the analyzed period.

That stability also suggests that competition between comparable assets has become a structural component of the corporate office market.

In a context where vacancy continues to trend downward, and rotation remains consistently active, pressure no longer focuses solely on filling vacant space, but on preventing occupiers from finding a more competitive alternative within the same corridor. Under that logic, part of corporate availability may reflect less a demand problem than a relative loss of relevance against more efficient buildings better aligned with current operating conditions.

Nevertheless, movements between different office classes appear to intensify as the corporate market becomes deeper and more concentrated, since the broader the comparable inventory within a corridor, the greater the ability companies appear to have to reconfigure occupancy among similar assets without significantly altering location, operations or corporate access.

According to SiiLA, 84% of detected movements were concentrated in Mexico City, compared with 13% in Monterrey and 3% in Guadalajara. Within the capital, Polanco, Insurgentes, and Santa Fe accounted for three-quarters of recorded rotation. In Monterrey, Valle Oriente concentrated 58% of local movements, while Providencia accounted for nearly half in Guadalajara.

Viewed this way, Mexico’s corporate office market resembles less a static industry and more a permanent adjustment ecosystem, where established tenants rarely leave the field, but constantly reposition themselves within it.

For more information about Mexico’s office market, visit SiiLA Market Analytics or contact us at contacto@siila.com.mx. 

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Methodological note: The analysis identifies movements compatible with portfolio reconfiguration across office classes (A+, A, and B) based on comparisons of quarterly occupancy records from Q1 2025 to Q1 2026 in Mexico City, Monterrey, and Guadalajara. To do so, consecutive quarterly pairs were compared, and cases were identified in which the same tenant appeared associated with a property of a different classification within the same submarket. Movements were classified as upgrades (B→A, B→A+, A→A+) or downgrades (A+→A, A+→B, A→B), incorporating variables such as origin and destination building, occupied area, square-footage difference, market, submarket, and type of territorial movement. Because a company may maintain simultaneous operations across multiple properties, reduce or expand occupied area, or partially reconfigure its portfolio without fully vacating a previous location, the results should not automatically be interpreted as definitive relocations, but rather as patterns compatible with migration, consolidation, expansion, or operational redistribution processes.