Major Office Absorptions Return to Mexico: Companies Average 1,000 sqm in 2024

The office market in Mexico shows signs of recovery, highlighted by increased absorption of large spaces. According to SiiLA, the average size of absorbed office spaces was 1,000 square meters during the first half of 2024. This average is between 10% and 48% higher than in the first halves of the last five years, with the gross leasable area (GLA) absorbed in major office markets growing at a rate of 4% per quarter since 2020.

The increase in the average absorption of office spaces in Mexico in recent years can be attributed to several key factors:

1. Post-pandemic economic recovery, which has driven the expansion of businesses and both domestic and foreign investment.

2. The adoption of hybrid work models and the reconfiguration of spaces, which have increased the demand for larger or more efficient offices.

3. The development of high-quality buildings (Class A+) and improvements in transportation and connectivity infrastructure, which enhance corporate efficiency.

4. The popularity of flexible spaces and coworking, which are transforming the operations and contractual conditions in the real estate market.

In addition to these factors, there is a significant circumstance: in the last five years, the absorption and number of large and medium-sized companies, which represent around 70% of the absorption area, have grown two to 2.5 times more slowly than the absorption and number of small and micro-enterprises.

This situation implies a structural change in the dynamics of Mexico's commercial real estate market. The divergence in growth rates between large and medium-sized companies and small and micro-enterprises, along with the rise of emerging and established sectors such as technology and finance, is redefining business development strategies and space planning. This drives greater demand for adaptable and high-tech spaces, accelerating the transformation of Mexico's commercial real estate landscape.