The Shift in Mexico City’s CBD: Who’s Growing, Who’s Leaving, and What’s Next

The market movement has not been uniform. In 2024, the sectors that expanded their presence the most in Mexico City’s financial hub included pharmaceuticals, import/export, water and sanitation, packaging, technology, construction, and advertising/marketing. Notable companies such as Cemex, Google, Novo Nordisk, Rotoplas, and Tetra Pak represent these sectors.

Conversely, telecommunications, electronics, capital goods, and cellulose and paper industries have scaled back their presence in the CBD. This decline reflects broader structural changes in their business models, where cost optimization and digital transformation have reduced reliance on traditional office space.

At the same time, the industries attracting new businesses to the CBD include pharmaceuticals, advertising and marketing, insurance, healthcare, and technology. In fact, one in four new entrants to the district belong to these sectors.

Despite this sector-driven momentum, office absorption in the region has remained relatively stable, with enough tenant retention to prevent a rise in vacancy rates. Currently, the CBD’s office vacancy rate stands at 16%, its lowest level since early 2021 and below the national average of 20%.

However, this trend is not uniform across the CBD’s submarkets.

Lomas Palmas has maintained stable absorption since 2023. This, coupled with limited new supply, has driven vacancy down for seven consecutive quarters, now sitting at 17.5%.

Polanco has emerged as the most dynamic submarket in terms of office absorption and new inventory. In 2024, it accounted for 84% of all new gross leasable area in the CBD, doubling its gross absorption compared to 2023 and increasing net absorption by 60%. While Polanco continues to attract companies and retain tenants at a high rate, new office deliveries have slightly outpaced absorption, potentially leading to an increase in vacancies in the medium term. Still, Polanco has seen two consecutive quarters of declining vacancy rates, now at 16%.

Reforma, by contrast, saw minimal new inventory in 2024 and was the most impacted submarket in terms of absorption, which fell between 40% and 44%. However, the lack of new supply has helped keep its vacancy rate downward for five consecutive quarters, currently at 15%.

This trend highlights a broader market shift: companies are adjusting their office strategies based on operational needs and the availability of suitable spaces.

Today, businesses are prioritizing flexible office layouts that enable a more open and horizontal operational structure in prime locations with strong transportation and service infrastructure. As a result, in 2024, most office absorptions were for spaces ranging between 700 and 1,000 square meters. Additionally, three out of four new companies entering the CBD chose Polanco or Reforma, which offer more central locations, over Lomas Palmas.

More than just a cyclical fluctuation in real estate, the shifts in Mexico City’s CBD reflect a structural transformation in how companies occupy and evaluate office space. Flexibility is no longer a competitive advantage—it is a necessity. Location remains essential, but now, its value is measured by its ability to accommodate dynamic work models and an increasingly demanding economic environment.

The rules of the game have already changed. The question is no longer which companies occupy the CBD today, but which will adapt, anticipate market shifts, and secure their place in the future.

For deeper insights into office market trends and to anticipate your next real estate moves, visit SiiLA Market Analytics or contact us at contacto@siila.com.mx.