Mexico’s Office Market: Major Transactions and Key Trends for the Coming Months
- In 2024, Mexico’s office market demonstrated a remarkable ability to adapt, as evidenced by the declining vacancy rates and strong demand for high-quality spaces. Factors such as moderate absorption, high tenant retention, and a limited volume of new deliveries created an environment where large transactions remained central. However, what do the key transactions of 2024 reveal about the future trends of Mexico’s office market?
Throughout 2024, Mexico's office market showed clear signs of strength, with a 300-basis point reduction in the vacancy rate since the second half of the year, closing at 20.1%.
This situation was driven by several factors, according to SiiLA data. First, moderate space absorption, with nearly 470,000 square meters occupied; second, strong tenant retention, which has remained stable over the past two years; and third, a limited volume of new stock, which totaled about 230,000 square meters—well below levels observed between 2019 and 2022.
These factors point to an adjustment in the supply and demand dynamics. Although absorption slightly decreased compared to the previous year, the concentration of large transactions remains a key factor, demonstrating how companies adapt to new work models and continue driving demand in the office market.
It is essential to highlight that, in 2024, the average absorption was around 800 square meters, but one-quarter of the transactions involved occupying spaces larger than 1,000 square meters. This reflects a growing trend toward occupying larger spaces, with some absorptions even quadrupling the national average.
Major Transactions of 2024
1. In the third quarter of 2024, the Multiva financial group leased nearly 10,000 square meters of Class A+ space in the Montes Urales 350 building in Mexico City. In 2024, financial companies were the highest demanders of space, accounting for 13% of total absorption.
2. In mid-2024, pharmaceutical company Novo Nordisk leased 9,500 square meters of Class A+ space in Miyana's Tower II, owned by Grupo Gigante in Mexico City. A total of ten pharmaceutical companies leased space during the year, primarily in the Mexico City Metropolitan Area and Guadalajara. The pharmaceutical sector represented 5% of total absorption.
3. In the second quarter of 2024, technology company TikTok leased approximately 8,800 square meters of Class A+ space in the Neuchatel Cuadrante building in Mexico City, managed by Hines. This move reflects the growing weight of the technology industry in the market, which was the second-largest space demander, accounting for 11% of office absorption.
4. Earlier in the year, business services company Foundever leased more than 6,600 square meters of Class A+ space in Centera Chapultepec, Mexico City. The business products and services sector was the fourth-largest space demander, accounting for 8% of absorption, just behind the real estate sector, which represented 10%.
Overall, the most significant transactions in 2024 reflect trends that will likely continue to impact the market in 2025.
Mexico City stood out as the most in-demand market throughout the year, accounting for 68% of total absorption, followed by Monterrey with 15%. The submarkets with the highest absorption were Polanco, Insurgentes, and Reforma. Outside the capital, Puerta de Hierro and Providencia in Guadalajara, and Valle Oriente in Monterrey, were the most sought-after.
The data also shows a clear preference for specific features in real estate. High-quality buildings dominated absorption, accounting for 92% of the leased space in leading markets like Mexico City, Monterrey, Guadalajara, and Querétaro. This trend reflects the pursuit of greater operational efficiency and the need to adapt to new demands for flexibility, accessibility, and sustainability.
In a context of ongoing transformation in work models, buildings in established markets with features such as advanced technology, open spaces, and ESG certifications remain the preferred choice for companies seeking to attract talent and provide work environments that align with current expectations.
To learn more about tenant movements in the commercial real estate market, visit SiiLA REsource or email us at contacto@siila.com.mx.
