Innovation and Expansion in Mexico. Spaces Will Open New Offices in Torres Obispado, the Tallest Skyscraper in Latin America

Spaces, a flexible workspace company, announced it would inaugurate a new 1,300 square-meter coworking center on the 58th floor of Torres Obispado, the tallest skyscraper in Mexico and Latin America, in the coming months. This launch reflects the expansion strategy of Spaces and its parent company, IWG plc, aiming to capitalize on the growing trend of hybrid work and nearshoring nationwide.

The new office space by Spaces promises to offer a unique work environment, combining functionality, exceptional design, and an unparalleled location in Monterrey's most iconic building to boost productivity and creativity within the business community, according to information released by Andres Sanjuan, CEO of Regus and Spaces in Mexico.

Torres Obispado is a Class A+ property with LEED Gold certification, housing offices, luxury residences, recreational areas, and green spaces. Standing at 305 meters, Torre Obispado's modern design and size make it an architectural landmark that has attracted significant tenants such as BBVA, Banregio, and WeWork, occupying approximately 48% of the building's gross leasable area (GLA), according to data from SiiLA.

The arrival of Spaces at Torres Obispado will reduce the vacancy rate in this skyscraper to below 5%. As of the last quarter of 2023, the rate was just over 7%.

IWG's Expansion Plans

Throughout this year, IWG plc aims to expand its network of workspaces in Mexico, mainly through brands like Spaces and Regus, and even with the potential entry of premium brands like HQ and Signature. Up to last year, Spaces and Regus were the dominant flexible workspace brands of IWG plc. While Regus represents about 76% of the British company's global portfolio, Spaces accounts for about 13%, followed by HQ and Signature, with 5% and 2%, respectively, in addition to other firms (4%) that do not have a presence in Mexico.

In just the last year, the GLA of Regus and Spaces in Mexico increased by 35%, exceeding 75,000 square meters across 54 Class A+, A, and B locations. For this year, IWG expects to have more than 40 Spaces locations in the country and continue consolidating its business alliances with key sector players, such as FIBRA Uno (FUNO), to operate sites in strategic properties.

IWG plc's expansion stands out at a time when real estate companies experienced limited growth (+3% between 2022 and 2023) in Mexico's office market. This contrast poses challenges and opportunities in a context where the real estate market seeks to adapt to new work and business dynamics, driving the reinvention of workspaces towards more flexible and resilient models, competing with traditional and rigid models, highlighting a change in the perception of value and functionality of work environments.

To learn more about trends and players in Mexico's commercial real estate market, explore SiiLA REsource or contact us at contacto@siila.com.mx.