The third quarter of the year is almost over and the uncertainty that Covid-19 had settled in early 2021 has come to make up our personal and work lives, in a scenario that has already passed through the third wave of infections in Mexico and that incorporates new variants that they lead us to redouble our efforts to protect health.

What seems to remain in the expression of the offices as a continuity of the corporate culture, which part of the workforce has valued much more as a result of working from home.

The vast majority of workers face multiple difficulties to keep their goals up to date without impairing the balance of their personal life, so returning even with a hybrid model could be beneficial for everyone.

If a real estate product has been evaluated for uses very different from the one originally conceived, it is corporate spaces. In part because of the oversupply that Mexico pointed out where developers and owners look for diverse options that allow them to make their investments profitable.

As a context, only in the capital the oversupply reached 14.4% at the end of 2019 and went on to register 19.4% at the end of 2020, currently finding 22.1% of vacant spaces.

However, between July and August the slope of this growth has softened, in part because inventories are no longer being fed at the same rate with spaces that enter unoccupied, and on the other hand, due to changes in uses that are already reflected in previously empty spaces.

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The transformations have been diverse from health, educational, housing, hotels and even some storage warehouses.

Some cases will be more profitable than others and everything revolves around the location, characteristic of the property and its state of construction, whether it is an old existing and disused building, a modern building in process or a property that was obsolete or unusable. following some of the earthquakes that occurred in Mexico City.

One of the most relevant examples in Mexico City has been the intervention of the capital government on Reforma Avenue to boost the economy with a highly employer sector such as construction.

News such as the start of work on Torre Porrua on Reform 56 and the call launched in July by the capital government for the design of a 27-story tower on Avenida Juárez, are part of the developers' response to the reactivation policy led by the Government of CDMX.

At the same time, when some development begins, two positive externalities are combined, such as the urban impact that transforms that area and the decrease in insecurity, when it becomes occupied.

So far in July and August 2021, the national corporate demand reached 88.6 thousand square meters. Mexico City and Monterrey together represent 77.5% of the national total, where the capital doubles the demand of the royal city.

During 3Q 201, both the start of construction and the terminations of projects that go on to increase inventories have been zero in the main corporate cities that Solili monitors.

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The fact of not having finished works in the period is due to the changes and adjustments that the projects that are progressing construction are having and that by not having a planned occupation in the immediate term, the cash flows destined for the works are extended over time. Under current circumstances, liquidity has become the most precious asset.

Unemployment in the months of July and August reached 103 thousand square meters nationwide, of which 78 thousand square meters are located in the capital. The Norte, Reforma, Polanco, Santa Fe and Insurgentes corridors continue to lead in terms of vacant areas.

While Puebla, Querétaro, León and Mérida have registered unemployment of less than 450 square meters during these two months.

If we compare unemployment between both months, we can observe a slowdown in this indicator, a trend that is reflected at the end of the quarter.

In the remainder of the year and the year to come, there will be many changes and lessons learned for the corporate Mexican market, which has shown strength, endurance and creativity when it comes to reinterpreting the needs of the market.

In the capital, the projects on Reforma Avenue will progress, among which are reconversions and adaptations of old buildings that will give a new face to the historic center of the city.

For their part, cities such as Mérida, Guadalajara and Tijuana will continue to provide niche opportunities, as indicated by Tijuana with the start of construction of 14 thousand square meters during the July-August two-month period of 2021.

In Solili you can also check offices in Guadalajara

Original note