Mexico City’s corporate market continues to adapt to an economic environment marked by caution in companies’ investment and expansion decisions. Financial conditions and international uncertainty have favored more selective demand, in which tenants prioritize building quality, location, and flexibility to meet their operational needs.

At the close of the third quarter of 2026, vacant office space in Mexico City totaled 2.1 million square meters, equivalent to a vacancy rate of 16.4%. This figure represents a year-over-year reduction of 126,000 square meters and reflects a gradual improvement in occupancy conditions, supported by active demand.

Of interest: Office Report: Solili | September 2026

Gross office absorption in Mexico City reached 157,000 square meters during the third quarter of 2026, a year-over-year decrease of 33%. Year to date, from January to September, gross absorption totaled 477,000 square meters, down 10% from the same period of the previous year. Despite this contraction, demand remains solid and stable, with activity levels similar to those seen before the pandemic, although companies continue to show caution and selectivity in their leasing decisions.

By space type, Class A office leases accounted for 80% of Mexico City’s transactions during the third quarter, reflecting a preference for buildings with better specifications, infrastructure, and amenities. In terms of geographic distribution, the Polanco submarket accounted for 32% of the capital’s gross absorption, followed by the North submarket with 24%. Together, these two submarkets accounted for more than half of the quarter’s activity, reaffirming their importance within the corporate market.

Vacancy trends differ across office classes. On a year-over-year basis, vacant Class B space decreased by 15%, compared with a 2% reduction in Class A. This pattern suggests that, in addition to building characteristics, factors such as price and location continue to influence tenants’ decisions and buildings’ ability to attract occupants.

See here: Campestre - Country posts the lowest vacancy rate in León, Guanajuato, at 9.6%

At the close of the third quarter of 2026, office space under construction in Mexico City exceeded 500,000 square meters. Although demand has recovered to pre-health-crisis levels, developers maintain a conservative stance, reflected in a gradual quarter-over-quarter decline in construction activity. This trend contrasts with the more than one million square meters under development during the pandemic and shows greater developer caution given current market conditions.

Mexico City’s corporate market maintains its preference for spaces with the highest quality standards and for established locations, such as the main corporate submarkets of Polanco and the North submarket. In the coming quarters, its performance will depend on the market’s ability to absorb available supply and on the economic and financial conditions that influence companies’ leasing, investment, and expansion decisions.

Nota: usé “submarket” en la primera mención y “submarket” en la segunda para variar, como es común en reportes inmobiliarios en inglés; si prefieres uniformidad, puedo usar “submarket” en todo el texto.