What is Plug & Play in the office market? We'll explain it to you

The concept of Plug & Play has gained relevance worldwide. Although this type of property existed prior to the COVID-19 pandemic, its use has increased due to the high vacancy rates.

In the real estate sector, Plug & Play refers to fully functional workspaces that are ready for tenants to use according to their needs. The term "Plug & Play" was coined in the 90s for devices that worked fully from their first use, without additional actions by the user besides connecting the device.

In Mexico City, the availability of Plug & Play offices reflects the existing inventory of furnished and conditioned properties resulting from a vacancy process. According to SiiLA, approximately 6% of the office inventory in the capital city is of the Plug & Play type.

Plug & Play properties are not only a result of property vacancy. Some first-generation properties have available spaces developed for Plug & Play. For example, The Summit Santa Fe, a capital building in the Santa Fe submarket, has two thousand square meters of office space, while the Torre Helice of Monterrey, in the San Jeronimo Obispado submarket, has one thousand square meters of furnished floor space.

What do Plug & Play offices offer?

Plug & Play offices offer fully equipped spaces ready for occupancy, with furniture in good condition, wiring, telecommunications infrastructure (such as Wi-Fi), and basic office equipment. They are designed for businesses of different sizes, particularly those starting operations, as they provide an economical alternative for occupying a workspace with competitive advantages, such as spaces that adapt to tenants' needs, and flexible leases per square meter.

The benefits of Plug & Play are not only the low installation costs for tenants, as they avoid adaptation, remodeling, and furnishing expenses, but also the time saved to settle in and start operating as soon as possible.

SiiLA is a US-based real estate company that provides a set of solutions that provide information for the analysis of the commercial real estate market in Latin America. It has offices in Brazil, Colombia, and Mexico. For more information contact us at contacto@siila.com.mx.