While supply and demand have been moving toward equilibrium over the past three years, pre-pandemic levels remain out of reach. The focus is no longer just on how many square meters are leased but rather on how many remain occupied long-term.

In 2021, the ratio of occupied-to-delivered space hit its lowest point, with a one-to-one proportion and negative net absorption—a sign of high tenant turnover and a market in distress. Since then, the trend has started to reverse. Today, for every square meter of new space delivered, two are absorbed. However, only 0.8 square meters remain effectively occupied.

This means that while demand is inching closer to 2019 levels—when nearly three square meters were absorbed for every one delivered—tenant retention is progressing at a slower pace. It is now three times lower than six years ago, signaling that the adjustment process is far from over. Nonetheless, the market shows clear signs of a new balance, where demand aligns more precisely with supply. This process filters out inefficient inventory, ensures that only genuinely functional spaces remain occupied, and leads to greater predictability in pricing and occupancy over the medium term.

While net absorption still reflects challenges in tenant retention, the data suggest a consistent pattern in transaction sizes.

Over the past year, lease signings and move-outs have averaged 800 square meters per transaction. However, one in four deals involved spaces larger than 1,000 square meters. This indicates that while many companies are optimizing their footprints, others continue to bet on larger offices to consolidate operations or adapt their infrastructure to hybrid models.

Additionally, the profile of absorbed properties confirms the market’s shift toward higher standards. 92% of leases in significant markets such as Mexico City, Monterrey, Guadalajara, and Querétaro were in Class A+ and A buildings. The preference for premium office space isn’t just about efficiency—it’s a strategy for differentiation in a market where availability alone is no longer enough.

This trend is also reflected in the growing demand for environmentally certified properties, which now account for 35-40% of newly constructed office space in monitored markets. As businesses prioritize reducing their carbon footprints, improving energy efficiency, and meeting international sustainability standards, the demand for certified buildings is only expected to rise.

At the same time, the rise of hybrid work models and the evolution of more flexible leasing structures have driven interest in plug-and-play spaces and coworking setups within traditional corporate buildings.

Despite the ongoing reconfiguration of the office sector, market concentration remains unshaken—especially in Mexico City’s central business district.

In the past year, 68% of all office absorption was concentrated in the Mexico City metro area, followed by Monterrey with 15%. Key sectors leading demand included finance (13%), real estate (10%), and business services (8%). The coexistence of traditional corporate tenants—seeking large, high-prestige spaces—alongside emerging industries prioritizing design, operational intelligence, and versatility is reshaping the market by diversifying supply and driving demand sophistication.

But Mexico City’s dominance isn’t just reflected in occupancy—it’s also where most new construction occurs. 61% of new inventory delivered in 2024 was in the metro area, cementing its status as the country’s office real estate epicenter. Meanwhile, other regions, particularly in the Bajío and northern states, face fiercer competition to attract tenants in an environment where supply still outweighs demand—similar to what was seen last year in Querétaro.

Beyond market concentration, prices are also adjusting following the post-2021 recovery.

After nearly a year of downward trends, the average rent now stands at $21.4 per square meter—almost 8% lower than in 2023. This price adjustment reflects both the pressures of supply and demand in different regions and the shifting priorities of tenants, who increasingly favor short- and medium-term lease commitments.

Throughout 2025, the Mexican office market will face a pivotal challenge: consolidating its newfound equilibrium. With absorption and vacancy reaching a more balanced state, the real test will be how pricing and tenant retention evolve in a landscape where flexibility is no longer an added value—it’s a necessity.

While the ongoing adjustment suggests potential rent stabilization, competition between locations will only intensify. Emerging office districts will need to prove their viability through efficient and adaptable spaces, while established corridors can no longer rely solely on their prestige to attract tenants.

More than a recovery, 2025 will be a year of redefinition, where the offices that remain occupied won’t be the cheapest or the best located, but those that optimize their value by aligning with tenant demand for efficiency and economies of scale.

For more insights into commercial real estate trends, explore SiiLA Market Analytics or contact us at contacto@siila.com.mx.