Office Vacancy in the CDMX Increases 243% in 2020

The office sector in Mexico has experienced significant vacancy rates and a decline in net operating income.
According to SiiLA, the major markets affected include Mexico City, Querétaro, Monterrey, and Guadalajara.

The office sector in Mexico was impacted by the pandemic. Photo: Leonid Antonov

02/18/2021

According to SiiLA, that monitors over 8.9 million square meters of office space in the country's major markets, the office sector has been significantly affected during the health crisis due to companies transitioning to remote work.

In Mexico City alone, approximately 420,000 square meters were vacated in 2020, a 243% increase compared to the previous year. Similar trends were observed in other markets, with Querétaro having a 19% availability rate, Monterrey at 15%, and Guadalajara at 22%.

SiiLA also noted that the finance, government, and coworking sectors have the largest office space footprint in these markets. Despite some lease renewals totaling 120,000 square meters in Mexico City during the last quarter, it is important to highlight that net operating income for Class A+ properties in the Central Business District (CBD) decreased by 10% by the end of 2020, based on market statistics and capital market results.

Read the full article (in Spanish).

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Founded in 2015, SiiLA is the industry leading REsource for comprehensive commercial real estate market insights, news and events across Latin America. The SiiLA suite of innovative products drive greater accuracy, efficiency, and strategic advantages for top players in the commercial real estate industry.