Unlocking the Benefits of Sustainability-Certified Offices in Mexico for Investors and Developers

The inventory of sustainably certified office buildings is increasing in Mexico.
Eco-certified office buildings are premium properties that command higher rental prices per square meter than non-certified properties.

In Mexico, the importance of environmental certifications in the office market is increasing rapidly

By: SiiLA News

04/05/2023

In recent years, there has been growing concern about the environmental impact of buildings in urban areas. As a result, there is an increasing demand for environmental certifications in office markets worldwide, including in Mexico. In cities such as Mexico City, Guadalajara, Monterrey, and Queretaro, investors are turning to sustainability certifications to reduce their impact and stand out in an ever-evolving market. SiiLA Market Analytics data shows that more than 3.5 million square meters of office space in these regions is certified, representing 33% of A+, A, and B-class inventory.

The demand for offices with sustainability certifications in Mexico has been rapidly increasing. Over the last two years, the proportion of delivered inventory with an environmental certification has risen significantly, from 33% in 2020 to 48% in 2022. This growth is a reflection of the rising awareness and demand for sustainable buildings in the market. The finance, co-working, insurance, telecommunications, and information technology industries occupy 51% of total square meters within eco-certified properties, according to SiiLA.These certified properties met internationally standards set by LEED, WELL, EDGE, and BOMA, which require properties to meet certain criteria related to water, energy, waste, and construction materials among others.

Located in the Santa Fe submarket, one of the fastest-growing areas in Mexico City, The Summit Santa Fe is LEED Gold certified.

In Mexico, the importance of environmental certifications in the office market is increasing rapidly. Buildings such as The Summit Santa Fe (FREL) and Torre Cuarzo (FUNO) in Mexico City are prime examples of properties that prioritize the numerous benefits of obtaining sustainability certifications. These certifications result in improved operational efficiency, cost savings, and healthier environments for tenants. Certified properties also command higher average rental prices per square meter compared to non-certified properties, with certified office spaces in Mexico City, Guadalajara, Monterrey, and Queretaro having an average rental price of USD $23.5 per square meter compared to USD $22.0 for non-certified offices, according to Market Analytics. The demand for properties with sustainability certifications is being fueled by top tenants in the market, as 94% of newly delivered eco-certified buildings are also Class A+ properties. Investors and developers have recognized that there is a monetary benefit to pursuing eco-certifications.

As the demand for sustainable buildings increases in Mexico, developers and property owners are obtaining environmental certifications to reduce their impact on the environment, while also benefiting from cost savings, improved operational efficiency, and higher average rents. Additionally, as top expanding industries occupy a significant portion of these certified properties, investors and developers are recognizing the financial advantages of pursuing sustainability certifications. SiiLA will continue to monitor the evolution of the Mexican Office Market. If you are an investor, developer, property owner or tenant and would like to learn more about our solutions, please visit our website or contact us at contacto@siila.com.mx.

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