For decades, a building's height and office size were synonymous with corporate success. More floors, more square footage, more power—Mexico City and Monterrey built skyscrapers under that logic. But the market has changed. Today, a 50-story building can be emptier than a 20-story one if it doesn't offer what businesses now prioritize: flexible, efficient, and adaptable spaces.

According to SiiLA data, Mexico City and Monterrey have at least 68 office buildings with over 20 floors. The average office space in these buildings is around 1,000 square meters, roughly 15% larger than the national standard. Collectively, they account for one-fifth of the office's gross leasable area across Mexico's four largest office markets—including Guadalajara and Querétaro—and represent nearly one in ten corporate buildings.

Despite their scale, these towers align with broader market trends, where average office vacancy stands at 20%. However, vacancy patterns are not dictated by height, the number of suites, or office size. The correlation is so weak—less than 0.05 in almost all cases—that it's fair to say a building's height and footprint have little impact on occupancy rates.

Some high-rises over 30 stories—such as the TOP Tower in Monterrey and Torre del Caballito in Mexico City—have maintained strong occupancy. Others, like Corporativo Santa María's Torre VI in Monterrey and Arcos Bosques' Torre I in Mexico City, have struggled to attract tenants. In contrast, buildings with more flexible layouts—like Montes Urales 424—have demonstrated greater stability, regardless of their scale.

Perhaps more telling is the persistence of vacancies in certain buildings: properties with high vacancy rates in 2022 remain in the same position in 2024. This suggests that structural market challenges have not changed. Location, building age, rental prices, amenities, and lease terms matter far more than the physical configuration of the property.

In other words, neither floor count nor office size determines demand. Instead, it's how the market perceives a property's value and how effectively landlords adjust their offerings. Flexibility in space design and commercial strategies have proven to be far more critical than sheer square footage or height.

Even so, inventory composition still plays a role. Taller buildings tend to be Class A+, positioning them as premium spaces with a more stable tenant base. Large corporations with long-term strategies prioritize quality, location, and prestige over cost. As a result, this segment has maintained relatively stable vacancies despite rental rates being up to 30% higher than Class B and 10% higher than Class A properties.

At the other end of the spectrum, buildings with larger office suites have demonstrated a different kind of stability. While they often rely on a single tenant, their occupancy tends to be more predictable. Many of these properties are leased to government agencies or large enterprises with rigid operational structures, which reduces turnover and leads to longer lease terms. Here, stability isn't about square footage—it's about attracting tenants with long-term occupancy horizons.

Meanwhile, multi-tenant buildings face a different dynamic. In theory, a steady flow of companies cycling in and out should mitigate the risk of prolonged vacancies. However, the relationship between tenant diversity and occupancy is not linear. While buildings with more tenants generally have lower vacancy rates, the difference is often marginal—and, in some cases, insignificant. Without a competitive pricing strategy, diversification loses its advantage, and vacancy becomes a chronic issue.

These patterns reveal that office market stability is not about building height or office size but about the type of tenants a property can attract and retain. Tall buildings have secured long-term corporate tenants, while larger office spaces have maintained occupancy through institutional leasing. In a market where uncertainty remains the norm, tenant permanence is the clearest indicator of stability.

For more insights on office market trends, visit SiiLA REsource or contact us at contacto@siila.com.mx.