According to the latest Report on the Class A Office Market in Mexico City, prepared by JLL México, at the close of the first half of 2023 (1H2023), the market continues its gradual recovery, with an vacancy rate trending downward. low and a positive net absorption.

The firm indicated that the Class A office vacancy rate is at its highest historical point; however, during 1H2023 it presented a slight downward trend, going from 23.6% at the end of 2022, to 23.3% at the end of the first half of 2023.

Of interest: Demand for offices in CDMX resumes the pre-pandemic rhythm, rising 16% over the 1st semester of 2019

Likewise, he mentioned that the vacancy of office space decreased considerably compared to the two previous years, in which an unexpected return of space was observed in the capital market; this derived from the implementation of hybrid models of work and the home office.

"It is expected that market activity will continue to recover and that, gradually, the space that was returned will gradually be recovered," reads the consultant's report.

In this way, thanks to the increase in market activity and the decrease in the vacancy of office spaces, the market reached a positive net absorption.

"Even though the market continues to recover, the oversupply prevails, so the condition of the office market will continue in favor of the tenant for the next two years," the firm considered.

Regarding the new inventory, JLL reported that the construction of corporate buildings is progressing at a slower pace, which are expected to be delivered in the next two years.

Check here: Industrial demand in the North of the country exceeds 1.8 million m² in the course of 2023

During the first half of 2023, close to 100,000 m² were added to the CDMX office inventory, and it is expected that a further 80,000 m² will be delivered during the last two quarters of the year.

Finally, the firm pointed out that the average rental price in the capital market had a slight increase, going from 23.50 to 24.20 dollars per m² per month.

In addition, he considered that CDMX has already reached the lowest point of this cycle, so a slight recovery in rents is expected.

In Solili you can consult available offices in Querétaro and Guadalajara

Original note