SiiLA's Guide to Insurgentes: Strategic Trends in One of Mexico's Largest Office Hubs

Insurgentes, one of the most critical corridors in Mexico City, stands out as a business hub with over 1.6 million square meters of corporate space, attracting major government institutions and FIRE sector companies.

Alejandro Delgado, Country Manager Mexico at SiiLA, notes that this submarket is one of the most competitive nationwide due to the profile of its tenants, the quality of its properties, and its service infrastructure.

Armando Valenzuela is the CEO of IZA Business Centers, one of Torre Vistral's most important tenants. Photo: SiiLA.

By: SiiLA News

06/26/2024

Insurgentes is one of the most important thoroughfares in Mexico City. Spanning 30 kilometers, it runs from south to north through the capital and gives its name to the Insurgentes office submarket, where the most prominent buildings are located along the avenue or on its adjacent streets.

Currently, Insurgentes houses the most significant amount of corporate space within the Valley of Mexico metropolitan area. Its office inventory exceeds 1.6 million square meters, which accounts for one-fifth of the total in the region. This figure continues to grow. This year alone, more than 100,000 additional square meters of office space are expected to be delivered in Insurgentes.

Insurgentes distinguishes itself as a highly competitive office submarket on a national scale. This recognition is not solely due to the prestige of its tenants, but also the exceptional quality of its properties and service infrastructure, as underscored by Alejandro Delgado, Country Manager Mexico at SiiLA.

Insurgentes: A Stable and In-Demand Market

Giancarlo Nicastro, CEO of SiiLA, and Alejandro Delgado, Country Manager Mexico at SiiLA, tour Insurgentes. Video: SiiLA.

Government institutions, which occupy nearly 35% of the gross leasable area (GLA) in Insurgentes, and companies in the FIRE sector (Finance, Insurance, and Real Estate), which occupy 24%, are the main tenants in the area. Central government agencies, such as the Communications Secretariat and the Attorney General's Office, along with companies like BBVA, IZA and Metlife, occupy spaces in well-known properties, including the Glorieta, Manacar, Parque Insurgentes, and Vistral towers.

The substantial presence of government institutions and FIRE sector companies in Insurgentes plays a pivotal role in stabilizing the office real estate market. These entities, occupying a significant portion of the GLA, provide a reliable and predictable income stream for property owners. Their long-term lease agreements and financial strength mitigate the risk of vacancy, establishing a robust foundation for the submarket's economic performance.

The high occupancy rate in Insurgentes, currently at 85%, is a testament to its appeal. The presence of government institutions and FIRE sector companies, the demand for high-quality spaces, and the increase in price per square meter in recent years, despite the challenging market conditions–where rising vacancy rates and a slow recovery in absorption have been observed since the pandemic–all point towards a promising future. This potential for growth implies potential investment opportunities in Insurgentes.

Due to its characteristics, Insurgentes positions itself as a business epicenter in Mexico City's office market, combining strategic location, robust infrastructure, and cutting-edge buildings that ensure its growth and long-term stability.

For more information on the performance and development of the office sector in Mexico, explore SiiLA REsource or email us at contacto@siila.com.mx.

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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.