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SMI - GERAL Q4 2025
+3.25 % 370.88
=
INCOME RETURN
+2.22 % +
APPRECIATION RETURN
+1.03 %
USD / MXN
0.00 % 17.32
GDP (Quarterly, Millions)
-1.24 % 29,325,765.23 PTS
CPI
0.00 % 4.45 PTS
Reference Rate
0.00 % 6.50 PTS
Closing IPC
0.00 % 68,333.47 PTS
UDIs
0.00 % 8.84 PTS

The Return to Offices in LATAM: Decline of Remote Work and Its Impact on Commercial Real Estate

  • More than 20 multinational companies with operations in Latin America, including Amazon, Google, and BlackRock, have begun implementing return-to-office policies, reigniting the debate about the reversibility of remote work and its effects on the labor and real estate markets. 

  • During the pandemic, remote work peaked at 40% in LATAM but has since fallen between 10% and 20%, driving a gradual recovery in the office market, where vacancy rates have yet to reach pre-pandemic levels.

Pedro Huerta is Amazon Mexico's Country Manager. The global company plans for employees to return to the office in 2025. Photo: SiiLA.
Pedro Huerta is Amazon Mexico's Country Manager. The global company plans for employees to return to the office in 2025. Photo: SiiLA.
By: SiiLA News
10/03/2024

The return to offices following the remote work boom during the pandemic is now an inescapable reality for many workers across Latin America. Over the past two years, more than 20 multinational companies with a presence in the region, including tech giants such as Amazon, Google, and Meta, as well as large conglomerates like BlackRock, Disney, and Salesforce, have required their employees to return to the office, at least partially. This has raised key questions: How significant is the adoption of remote work in Latin America, and how is its reduction affecting the commercial real estate market? How smooth will the return to offices be, and why is it so crucial for these and other companies to return to physical workspaces?

Data from the World Bank, the Inter-American Development Bank, Deloitte, and JLL show that before the pandemic, between 10% and 15% of workers capable of remote work did so. That number surged to 35% or 40% at the height of the pandemic. However, by mid-2023, there had been a slowdown, and currently, only 10% to 20% of employees in Latin America still work from home. While these figures are lower than in Asia, Europe, or North America, the region has shown a stronger preference toward hybrid work models.

In the past two years, data has revealed a 10% to 30% drop in home office workers in countries such as Argentina, Brazil, Colombia, Mexico, and Peru. This decline overlaps with improved vacancy rates in major office markets across Latin America, though they have not yet reached pre-pandemic levels, according to SiiLA statistics.

In Mexico, for example, office vacancy rates began to slow in mid-2022 due to a reduction in new inventory and increased absorption of corporate spaces. This was driven by the demand for furnished offices and the growing adoption of flexible work models, including coworking.

A similar trend occurred in Colombia, where an over-demand for corporate spaces has kept the market balanced. Factors such as project delays, large spaces occupied by their owners, the predominance of smaller, easier-to-rent spaces, and closing prices often lower than initial asking prices have facilitated absorption.

Like Mexico and Colombia, office demand in Brazil is focused on modern, well-equipped spaces, which has driven absorption in business-heavy cities like São Paulo, Rio de Janeiro, and Curitiba. Since early 2022, there has been a gradual decline in vacancy rates, despite new inventory, thanks to strong demand for Class A+ and A spaces, largely absorbed by tech and financial companies returning to offices.

Latam
Mexico
National
Office
Market Analytics
Return To The Office

ABOUT SiiLA

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.

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Transactions


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