The country's capital managed to reach the figure of 90 thousand square meters of gross demand, during the first quarter of 2022, slightly lower than that of the last quarter of 2021 although higher by 20% than that registered in the first quarter of the previous year.

We have seen how gross absorption has been gradually recovering, although at the end of the first quarter of the year, net absorption is back on negative ground, motivated by the vacancies registered during the quarter.

The oversupply in the country's capital closed at 23.12%, registering an increase of just over two percentage points in the last year. Also throughout the last year, projects in the order of 409 thousand square meters were completed, which entered the inventory, largely increasing the vacant spaces in the city.

All these factors affect the market, product, price-value and financial analyzes that have been fine-tuned by developers looking for an outlet that allows them to maintain the profitability of their investments.

Check here: Corporate inventories grow at 3% per year at the end of 1Q 2022

In terms of market factors, conversions from offices to housing have advanced significantly, with the support of the capital government, which recently approved the reconversion of 10 office corridors towards housing, keeping 40% of the areas for corporate use. originally conceived.

Submarkets such as Polanco, Reforma, Insurgentes and Santa Fé, which are included in the Guidelines of the Official Gazette of the capital, represent more than 50% of corporate inventory and group just over 61% of the capital's vacancy, so an intervention on part of these areas would have a significant impact on the oversupply.

These initiatives are now applied to buildings of classes B and C, where existing buildings may not be demolished, and apply to buildings with functional obsolescence.

However, the rest of the vacant Class A properties and some portions of the Class B properties can find a commercial outlet for their occupation with the adaptation of some floors towards the so-called flexible spaces.

These types of offices can adjust to the demand without obligation of deadlines, allowing to expand or reduce the contracted areas, offering work teams the possibility of working remotely while having multiple services and common areas that can be added in the contracting .

A good example of this is the adaptation that models such as Wework, Iza Business Centers and Ios Offices have had, which have incorporated a range of multiple services from meeting rooms with connectivity on demand, months of grace, availability of furniture, messaging services and reception, among others.

Of interest: Office real estate market affected by Inflation and Omicron during 1Q 2022

In the case of Mexico City, there is a varied competition in this flexible model where many developers who manage portfolios of 5 to 10 office buildings have managed to create an outlet for the placement of their properties in this segment, a trend that has been replicated in the country's emerging markets.

Other companies such as Público have managed to adapt and offer about 7 options, mainly in neighborhoods such as Polanco, Lomas de Chapultepec, Roma and Condesa, with services that include green areas, a cafeteria, an auditorium, a rooftop, and even new photography studios, a bar, and a moon room. and podcast rooms.

Now the main challenge facing the corporate sector is to once again close the vacancy gap, which was distributed between Class A and B spaces between 39 m2 and 7.3 thousand square meters, during 1Q 2022, although the majority was concentrated on the thousand square meters.

This new behavior of unemployment has to do with the increase in infections generated by the new Omicron variant, which spreads more easily although it has caused a significant decrease in hospitalizations.

The return to face-to-face classes in most of the city's educational centers will be another element that normalizes demand for the next quarter, where developers will continue to innovate with new concepts that will keep the sector afloat.