The primary office markets in Mexico have witnessed the addition of at least 19 new corporate buildings in the past year, contributing over 350,000 square meters of gross leasable area (GLA). While this quantity of new inventory is moderate, as it represents a 3% increase over the existing inventory in Mexico City, Guadalajara, Monterrey, and Queretaro, these new corporate spaces are poised to make a significant impact on the commercial real estate market, according to SiiLA.

The new properties reflect the country's ongoing economic growth and the continued demand for modern and functional spaces by businesses. Real estate developers are responding to these needs by creating buildings with sustainable technologies and cutting-edge amenities to attract companies from various sectors. In this regard, SiiLA Market Analytics data indicates that 88% of the new inventory falls under class A+ while the rest is class A, signifying very high and high quality. Furthermore, at least 38% of the delivered or soon-to-be-delivered GLA holds environmental certifications, irrespective of the sustainable features present in most 19 buildings.

As the competition to attract investments and talent intensifies across the primary office markets nationwide, the expansion of inventory becomes a key factor in maintaining competitiveness and dynamism in Mexico's business landscape. Over the past five years, an average of 80,000 square meters per quarter were delivered in Mexico's main office markets. And each year, the average size of delivered spaces increased, with a 53% variation over the period. Currently, the middle delivery area is 19,200 square meters, compared to 12,600 square meters in 2018.

The increase in the size of delivered or constructed office spaces has implications beyond physical size. It can influence work culture, talent retention, collaboration, office efficiency, and other factors. This is because spacious environments allow for flexibility and versatility, enabling companies to adapt them to their needs and leaving room for internal growth. Additionally, larger spaces can accommodate advanced technologies, foster diversified activities, and promote the implementation of sustainable energy solutions.

Prominent Properties and Markets

Ten of the 19 new corporate buildings are in Mexico City, accounting for 69% of the delivered and soon-to-be-delivered GLA. Meanwhile, Monterrey and Queretaro each contribute four buildings, though Queretaro's delivery area surpasses that of Monterrey. The remaining building (Avania) is part of the Guadalajara market.

The three largest buildings are in Mexico City, ranging from 38,500 to 54,000 square meters. These properties include Torre Sur Distrito Santa Fe, Distrito Polanco, and Neuchatel Cuadrante Polanco. Apart from these structures, other properties with over 20,000 square meters of GLA include Distrito Queretaro - Torre 1 in Queretaro, as well as Forum Naucalpan - Torre B and Llevel Polanco, both in the capital city.

The rest of the buildings vary between 4,600 and 16,600 square meters of GLA. It's worth noting that 82% of the GLA is concentrated in five submarkets: Polanco (41%), Santa Fe (15%), and Norte (11%) in Mexico City; 5 de Febrero (9%) in Queretaro; and Centro (6%) in Monterrey.

The addition of new corporate buildings reflects the evolution of Mexico's commercial real estate market in response to changing business needs and economic growth. This has the potential to enhance competitiveness, drive investment, and elevate the overall quality of workspaces in the country. For more information on Mexico's office market, explore SiiLA REsource or contact us at contacto@siila.com.mx.