Market Rent: A Strategic Indicator Reflecting the True Market Value of Industrial and Office Properties in Mexico

SiiLA is transforming real estate analysis by introducing the Market Rent indicator to its Market Analytics data platform. Now available to all our customers, this new metric provides a much more precise and detailed assessment of rental values for industrial and office properties in Mexico.

Unlike the traditional asking rent, which reflects the amount requested by property owners when listing a property—without necessarily adjusting to current economic or real estate market conditions—, Market Rent is a dynamic metric. It takes into account a wide array of factors such as recent transactions, market activity, vacancy, macroeconomic trends, asset quality and condition, as well as regional supply and demand, among others. This comprehensive approach results in a more accurate per-square-meter valuation, providing tenants and owners with a reliable reference point based on actual market behavior and economic factors. This, in turn, facilitates more strategic and well-informed decisions.

Giancarlo Nicastro, CEO of SiiLA, emphasizes that this new metric improves market analysis and commercial and investment strategies, bringing transparency and efficiency to the commercial real estate sector.

On its part, Alejandro Delgado, Country Manager Mexico at SiiLA, highlights that since commercial real estate rents can often be inflated or undervalued, Market Rent helps correct discrepancies.

For example, in industrial markets with low vacancy rates, like Ciudad Juárez, Tijuana, and Mexicali, obtaining an accurate rent reference can be difficult due to the scarcity of available properties. “When few properties are available, the asking rent doesn’t always reflect market reality because the sample size is insufficient,” Delgado explains. Market Rent becomes essential in these cases, as it considers both occupied and vacant properties, offering a clearer view of price trends and long-term outlooks.

Similarly, although availability is more abundant in the office sector, factors such as building quality and space type (shell, plug-and-play, or furnished) affect the accuracy of asking rent. Market Rent adjusts for these variables, providing a more comprehensive analysis and allowing owners and tenants to make decisions based on more representative market data.

“Our aim is to equip industry players with a tool that accurately reflects the true rental value of a property, not just the asking rent,” Delgado emphasized. This is a win-win situation, benefiting property owners by aligning their expectations with the market reality, and tenants, who can now negotiate based on more realistic and representative data.

Don't miss out on the opportunity to gain a clearer and more reliable view of rental prices in Mexico’s key markets. Access SiiLA Market Analytics now and start exploring the power of Market Rent.