Offices for Business Services: Querétaro’s Strategy to Transform the Real Estate Market

The expansion of nearshoring in the Bajío region, driven by the growing presence of advanced manufacturing industries, has created significant demand for business services in Querétaro. Submarkets like Bernardo Quintana have become key players by offering a competitive cost alternative. As a result, competition in market rents and the delivery of new properties among submarkets has become increasingly evident.

When it comes to industrial rents, areas like Juriquilla and Centro Sur typically range from $18.5 to $19.6 per square meter. However, Bernardo Quintana and 5 de Febrero offer a competitive cost alternative with lower rents, between $16.2 and $16.8. This operational advantage is particularly attractive for companies looking to optimize their investments.

On the other hand, a slowdown in the delivery of new inventory in key markets such as Centro Sur between 2021 and 2023 and 5 de Febrero, starting in 2023, has also affected Bernardo Quintana over the past two years. This slowdown has intensified competition with emerging submarkets like Juriquilla, where the development of premium offices, particularly Class A+ and A, has been relatively steady. 

In Juriquilla, the delivery of new inventory has helped balance the still-strong demand driven by companies seeking high-quality spaces. In contrast, regions like Bernardo Quintana continue to consolidate as strategic submarkets, facing the challenge of competing with other Querétaro submarkets and revitalizing their office inventory to remain attractive in an increasing demand for specialized services.

In this scenario, it’s crucial to understand that the balance between supply and demand has directly impacted rental rates in Querétaro. This awareness is key for making informed decisions in the market.

In the 5 de Febrero submarket, office vacancies have trended downward due to the slowdown in new inventory deliveries and steady absorption, particularly in Class B spaces. This stability in demand, though more moderate, provides a reassuring outlook for the market and hints at potential growth opportunities. Meanwhile, Bernardo Quintana has seen an increase in its vacancy rate following inventory growth between 2020 and 2022, creating more space but with slower absorption. And Centro Sur, despite a temporary spike in vacancies following new inventory deliveries in 2020 and 2023, has maintained a good occupancy pace thanks to stable demand. Similarly, Juriquilla experienced peaks in vacancies starting in the second half of 2020 and late 2023, driven by the constant delivery of high-quality offices.

Overall, while office demand in Querétaro has trended upward, new inventory deliveries have kept vacancy rates high in some submarkets. As a result, vacancy levels are now similar to those from four or five years ago, with significant variations by area. Juriquilla, for instance, has seen more dynamic office absorption. At the same time, Bernardo Quintana and 5 de Febrero have experienced more gradual absorptions, offering businesses a range of competitive options depending on their operational and budgetary needs.

As submarkets continue to evolve and adapt to the market's new demands, it's crucial to understand that their ability to attract investments will depend on their flexibility and capacity to anticipate the needs of expanding businesses. The key question now is how to maintain this competitiveness in the long term in a constantly changing environment.

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