The health crisis had a significant impact on the performance of real estate assets worldwide, with the corporate sector being the most affected.

Before the Covid, there was a period of high liquidity, combined with low interest rates, which favored investors and developers to increase their bets on this type of investment.

Once the pandemic enters the scene and non-essential activities are paralyzed, the industrial and residential sectors were the most resilient, while retail and office received the greatest impact from the paralysis of activities since important changes in work habits were fostered that decisively affected demand.

Check here: Demand for offices increases and vacancies decrease as of August 2021

On the supply side, 1.2 million square meters were being executed in the capital, prior to the paralysis of activities at the end of February 2020, when the vacancy registered 19.5%. To place ourselves in the current scene, as of October 2021, about 897 thousand square meters continue to be executed.

So far in 2021, the start of new corporate buildings has been almost nil and in parallel works have been completed for about 135 thousand square meters that became part of the new available inventory.

Mexico City groups 77% of the corporate inventory nationwide, followed by Monterrey with 9%; and on the other, emerging markets.

Analyzing the capital, there was a recovery trend in gross demand if we compare 3Q 2021, which reported 94 thousand square meters, with the same quarter of 2020 where an increase of 22% is indicated. Although it should be noted that this value is still 64% below the net demand registered as of 3Q 2019, prior to the pandemic.

However, the capital's net demand, despite continuing in negative territory with 19,661 square meters at the end of 3Q 2021, has been closing the gap since the beginning of 2021, since unemployment is on the way to regularization in proportion to the size of its market .

Of interest: Real estate conversion to smart buildings impacts the carbon footprint

Companies are already more certain of their needs and the gear of their work teams under the hybrid scheme, leaving behind the strong proportion of the home office that we had seen at the beginning of 2021.

Results of the reconversions are also beginning to be seen, such as the recent announcement of Fibra Uno (FUNO) where it has disposed of approximately 110 thousand square meters of its portfolio of offices to transform them into clinics and hospitals, seeking to address the lack of health infrastructure that is made evident in Mexico after the pandemic.

The recovery process has already begun, although very slowly, and it is expected that during 2022 and part of 2023, the observed trends will be adjusted until vacancy levels are achieved that will drive the start of new construction.