Even with the caution that has been observed in the corporate office sector in Mexico, large transactions have not stopped, proof of this is Fibra Monterrey's commitment to closing the purchase of the corporate component of La Perla District in Guadalajara.

The office sector has been one of the hardest hit during the pandemic, and in the specific case of Guadalajara with a corporate inventory that reaches 775.5 thousand square meters, the vacancy reached 22.6%, the second highest nationally, according to Solili in your report to 2Q 2021.

Until before La Perla, Fibra Monterrey's revenues came 52% from the industrial component and 42% from offices, although with the purchase the balance leaned towards the corporate sector.

With the acquisition of the corporate portfolio, this investment trust or FIBRA tilts the balance slightly towards the offices, while the rest of its portfolio remains in the industrial sector.

Consultation: Mega complex north of Guadalajara

The reason for the purchase in a scenario such as the current one is mainly due to factors such as the quality of the asset, the type of transaction and the office landscape in Guadalajara.

“During the pandemic, the property had a very resilient behavior, it even increased its occupancy and we liked that a lot, so we resumed negotiations and adjusted the conditions of the transaction, which improved the profitability expectation and it was possible to reduce the price by approximately 10 % ”Highlighted Javie LLaca, the CCO of the fiber.

During 2Q 2021, the Guadalajara corporate market had strong growth in terms of inventory, due to new buildings that finished construction, and also in terms of vacancies due to the high levels of vacancy that were reported throughout the quarter.

La Perla District, is marketed under the slogan "a city within the city" is developed as a masterplan on 43 hectares carried out by a group of companies led by Motform, and designed by the firm Skidmore, Owings & Merrill (SOM) corresponds to a mixed-use project that includes housing, offices and a shopping center in which Fibra Shop participates.

The outstanding architecture of La Perla District has very short vertical circulations, a high number of green areas and spaces open to natural ventilation, characteristics that have been revalued with the pandemic.

Tenants are another element in favor, since the vast majority come from the technology industry such as Toshiba and Wizeline, among others. The demand that these sectors have had to make them safe tenants, added to the fact that their work dynamics incorporated remote and hybrid work before the pandemic, according to Liz Cervantes for Obras Expansión in the original note.

In Solili you can consult the Real Estate Report of Guadalajara Offices as of 2Q 2021

Original Note