Miyana's Torre II Records the Highest Office Absorption in Mexico in 2024

In Mexico City's office market, where vacant properties typically remain empty for an average of nine months, there are exceptional cases that immediately capture attention. One such case is Miyana's Torre II in Polanco. Delivered in the second quarter of 2024, it stands out as a unique success story, recording the highest gross absorption nationwide, with over 16,800 square meters of corporate space occupied.

It's important to note that while SiiLA Market Analytics tracked the gross absorption of space in Miyana's Tower II from the moment the property was delivered, the leasing agreements with tenants may have been finalized earlier. This explains the rapid occupancy observed, reflecting the property's high demand and strategic value.

The data shows that four companies, including healthcare firms Baxter and Novo Nordisk, a confidential company, and renewable energy specialist RWE Renewables, occupied six spaces in Miyana. These companies, with their diverse business sectors, chose Miyana for its mixed-use complex, featuring commercial and residential areas and two A+-grade corporate towers with sustainable certifications, located on Ejército Nacional, one of the main thoroughfares in Mexico City's central business district.

The absorbed spaces account for 19% of the gross leasable area absorbed during the second quarter of 2024 in the country's main office markets, which include Guadalajara, Monterrey, and Querétaro, in addition to the capital.

These transactions come at a time when SiiLA recorded an increase in large-scale absorptions in Mexico City. Data shows that during the first half of 2024, the average size of absorbed office spaces was 34% larger than in 2023, the highest in the past five years. Specifically, the average size of absorbed spaces in Miyana's Torre II was approximately 2,500 square meters, nearly 2.5 times larger than the average observed in Mexico's main office markets.

Transactions Strategic Implications

The rapid and significant absorption of corporate space in Miyana highlights essential trends in the capital's office market.

Firstly, the speed and magnitude of this absorption indicate a structural shift in corporate tenant preferences. This shift is towards sustainability and the integration of mixed-use spaces that facilitate functional synergy. Companies are now prioritizing office spaces that not only provide a physical location but also contribute to a more cohesive and functional urbanism. This trend has the potential to optimize operations in highly competitive and strategic areas, and it also reveals a demand beyond physical spaces, focusing on creating business ecosystems that enhance productivity and add value to companies.

Secondly, the average size of absorbed spaces suggests that companies are consolidating operations and adopting more centralized and collaborative work models. This move could be driven by the need to reduce operational costs and maximize efficiency in a challenging economic environment.

Thirdly, the contrasts between Miyana and Polanco reveal clear trends in this office submarket. Miyana's Torre I has reduced its vacancy rate by 17% over five years, stabilizing at just over 4%, despite having higher rental prices ($27.8/m²) compared to Polanco ($25.3/m²), where the average vacancy rate is 18.2%. This suggests efficient and functional offices in strategic locations tend to be occupied more quickly and sustainably. These qualities make Miyana's spaces highly desirable, even surpassing high-quality offerings in Polanco, where the inventory and new inventory are predominantly A+ and A grade.

It's worth noting that Torre II, with a slightly lower rental price than Torre I, is poised to continue its upward occupancy trend in the coming years despite currently having an occupancy rate of just over 27%.

To learn more about Mexico's office market trends, explore SiiLA REsource or contact us at contacto@siila.com.mx.