Reinventing yourself is the watchword for most office buildings. In the case of corporate spaces, a situation became more acute that indicated an oversupply in the Mexican market, specifically in CDMX.

As of May 2021, Foreign Direct Investment (FDI) contracted 29% compared to the same period in 2020, closing at 11,864 million dollars, while the GDP achieved a slight recovery of 0.8% over the previous month, in counterpart, it was they have increased measures to advance the population.

Due to personnel and space adjustments, as of April 2021 the unemployment rate in Mexico shows a trend of the cycle of 4.6%, a similar value of the previous month and 30 basis points below the value registered in 2020, this indicates that employment it is closing the gap that reached the most difficult point during the second quarter of 2020.

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In addition, as a second element, it is foreseen that with the prohibition of the subcontracting of personnel, this modality will be left for non-essential or permanent work of the companies.

Both situations affect the internal reorganization of many companies that validated the need for physical space.

Given these changes, the corporate market in Mexico at the end of May 2021, the gross demand increased, which went from 5.8 thousand square meters in April to 15.5 thousand square meters in May, with the capital concentrating 64% of the gross monthly demand.

In the capital, no Class A or B project reported the start of construction, so that one million square meters is maintained in various stages of execution and that they represent 9.4% of the capital's inventory.

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Unemployment continues as a constant theme, and in May, it reached figures higher than those of demand and even those that had been reported in April. According to Solili's figures, just over 57 thousand square meters were vacated in Mexico City.

For this first half of the year, some companies will have already scheduled the return of a percentage of their staff to their new offices, such as the case of Lóreal in the Mítikah complex or that of Microsoft, which will resume part of its reorganized activities at its headquarters in Montes Urales.

Additionally, properties have been reconfigured to put them up for sale with the option to change land use, such as the former headquarters of the British Embassy in Cuauhtémoc, which could qualify for residential use or those that were modified to be hospitals or clinics.

Read: Solili Offices Report May 2021: Companies begin to return to offices but unemployment persists

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